As many of you know, Bio-Clean® is one of the best add-on sales products available to service plumbing contractors. This environmentally friendly biological drain cleaner, which comes in powdered form, is a trade exclusive sold directly to plumbing contractors. This little gem is key to upping your average ticket and showing your clients that you do more than just install and repair.

But, how do you get your service techs to sell it?

Sooner or later it happens to everyone in the business. A disgruntled customer notices the prices of parts and merchandise sold at the retail stores and complains about the big markups charged by the contractor. This is a bigger problem for time and material firms, whose prices are itemized for all to see at a glance. However, even we flat raters face it from time to time.

“How much will a new water heater sot me – mine is leaking?” Anyone in the PHC service business hears this question and others like it numerous times a day over the phone. Most attempt to answer it by quoting an hourly labor rate or giving a “ballpark” estimate of what the job will cost based on the caller’s description of the problem.

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I speak with plumbers all the time. The biggest question I ask is what are you doing differently to grow your business? Maybe when starting a business the most important consideration is the technical aspect of getting the job done and doing it right. That remains to be an important aspect in business, however as the business grows and matures many other aspects become equally important.

Sales, Marketing, advertising, brand identity; Fleet Management, etc just to name a few. It reminds me of a restaurant I went to once. It had just opened and the food was great! The next time we decided to go there, it had closed. We never saw any local ads, coupons, etc. That just goes to prove, you can have the best {fill in the blank}, but if no one knows about it, the business will not grow. In summary having a great technical skill is just one aspect of running a business.

I predict that more and more companies will transfer stock ownership to the troops because it works to motivate the employee-owner to work harder, faster, better. They pay attention when it’s their assets and reputation at stake. It is the ultimate empowerment.

A friend of mine, who has a pretty decent compensation package, recently told me that he was getting ready to sell the business. He wanted to give the employees first shot at the sale. As soon as he told them this, their behavior changed virtually overnight. They were always hard workers, but suddenly phone messages were being returned lickety-split. Spare copper fittings were being viewed as inventory rather than garbage. Suggestions for improvement were being proffered left and right.

Frank Blau
Contributing Writer
Frank Blau Plumbing, Owner
My article in the April 27th eBuzz, “I’m Mad As Hell!”, has gotten as much reaction as any I’ve ever written. In it I vented my anger at all the people I deemed “slugs,” who are dragging the industry down.
“What’s a slug?” one of my industry friends asked me not long ago. For those who don’t know, a slug is a type of snail. Snails are slow and primitive, so I used the term to describe people in our industry who fit that description. Most …

The 2002 and 2003 profit and loss statements attached reflects an actual case for a Midwestern plumbing and drain cleaning firm. In 2002, the business was a partnership jointly owned by a plumber and a realtor. The realtor bought out his partner and, after attending one of my seminars, revamped the business in a way that resulted in revenues almost tripling. The 2003 financial statement was also much improved, though, as I will explain, it still falls short of the ideal.

The most glaring problem with the 9-month statement for 2002 is in the Cost of Sales category near the top. All it shows is a single line item for Plumbing – $19,115, amounting to 8.7% of sales. I don’t remember what this was supposed to measure, probably materials. In any case, it is an inadequate breakdown. (I was told that this statement was prepared by a CPA, which goes to show how little many accountants know about our industry.

As you see with the revised 2003 format, the Cost of Sales category was expanded to include several items that previously were tallied, mistakenly, under Operating Expenses. We see wages broken out for both plumbers and drain cleaners, as well as subcontracting costs, commissions, parts & materials, permits and payroll taxes. All of these are direct costs, or what we call overhead.

Service Agreements can be a great way to help develop a life-long relationship with your customers. And they can also be a ticket to wasted time and energy. Read the following article to help you get priced right. Then, if you choose to offer Service Agreements at less than a profitable price, create systems that will help you capitalize on the sales opportunities presented during the Service Agreement call: Use a survey, ask good questions and listen, offer appropriate upgrades…and be quiet long enough to get a YES!

You want to make more sales and more money. Good for you. And it’s good business.

Here’s the problem. More sales at a losing selling price is like cliff diving into Lake Powell. You might not hit bottom, but you might. It’s going to hurt if you don’t know what’s below.

It’s 8:15 am. Your experienced, professional, sales oriented, customer service focused, technically masterful sales team is still at the shop. Ready to go…with nowhere to go. Maybe that sales team consists of just lil’ ol’ you. All dressed up and no where to go.

Sigh. Now what?

It’s up to you. Put on your Marketing Hat, and CREATE some action.

I have ideas…most of these great ideas I got from YOU. Thanks…and thanks for sharing!