It’s no secret, we need our business to make more money. The world today has put focus on working today for tomorrow, while much of this statement is true it doesn’t hold the weight of our everyday business struggles. We need to make more money, not just tomorrow.. but RIGHT NOW. This is the first of the five-part series, “5 simple things that you can do right now to make more money for your plumbing business.”
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3 Golden Nuggets
- Charge More – If you aren’t making what you want to make in the plumbing business, the solution might be as simple as charging more money!
- Mark up all materials 100% – If a toilet costs you $100.00 from this point on your going to charge $200.00, even your subcontractors – Mark up everything 100%, your time costs money, and acquiring these items has cost you time. It should only be expected that you are making money on this aspect of the business.
- Provide flat-rate pricing – The customer (your customer) doesn’t live in a T&M world, they live in a flat-rate pricing world. Everything our consumer buys is at a flat rate, from their purchase at Walmart, to their furniture, everything in their life is purchased at a flat rate. We should be billing our customers the same way!
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If you aren’t making enough money, a simple solution might be as easy as charging more money! Where did you get your pricing? Did you come up with your pricing out of the air or are you trying to manipulate your pricing based on your competitors? Take a close look at your honest, hourly rate so you can charge more and make more!
Mark up all of your materials 100%
The big companies are making their businesses profitable because they maximize the business from every aspect. Whether it’s a toilet or a hot water heater, you need to make a profit off of the materials you are selling, your customers WILL pay for it. Start today, go through your inventory, and mark up everything!
Provide flat-rate pricing
Your customer is used to seeing a price that includes parts and labor so give them what they are used to which is a flat rate price. Nobody wants to pay a plumber no matter how nice you are or how much they like you. Stop showing a breakdown of time and materials and give the customer what they want which is a flat rate, this will increase your profits and will equate to happier customers!
Richard’s Call to Action
If you want to learn more about numbers that matter and how to best run your plumbing business, why not schedule a free 30-min strategy call with us? Let’s talk about your goals and where you want to be this time next year, and we’ll help you create a path to make that happen. Schedule your free strategy call here today!