The Financial Foreman Insights – Plumbing Part 1
Do you want to improve and grow your plumbing business? The first step is to look at your successful competitors and see what they are doing. Powered by Research and our knowledge, insights and experience we know the most successful plumbing business do the following very well:-
Market your business plumbing business effectively
What does that mean?
- You have a steady stream of referrals from existing and past customers
- You consistently receive leads through a local business directory
- You have the phone ringing from an ad in the local paper
- You have enquires from a mail out campaign
- You have an online presence and a combination of paid advertising and social media activity results in new leads
- You sponsor a local club (ie footy club) and receive a return on that investment- You develop and maintain a good relationship with equipment suppliers and project developers
The key word is you market your business ‘effectively,’ you should be tracking where your leads are coming from (ie referrals, ad in the paper etc.) and the relative marketing spends. That way you are able to measure what gives you your best bang for your buck and invest more accordingly. It is worth noting marketing is not a one size fits all approach, the demographic profile of your customers varies from business to business and the method to market to the customers should be varied accordingly.
“The key word is you market your business ‘effectively,’ you should be tracking where your leads are coming from”
Ability to compete with other plumbing businesses
How do you give yourself a leg up on your competition:-
-
- Your relationship with plumbing suppliers and more specifically the price your supplies
- Ability to offer your services in packaged deals, customers like fixed prices.
- Specialising in a segment of the industry (list segments), excel in one segment quote jobs accurately and do the work more efficiently by focusing on one segment.
- Broaden your skills and be a specialist in a variety of segments.
Ability to change with the market in the industry
How do you give yourself a leg up on your competition:-
The successful plumbing business are able to adapt to the needs of the consumers. For instance:-
-
-
- Market demand for Hot Water Systems spike in winter, the successful plumbing businesses know this and market promotions around these seasonal fluctuations
- Differentiation of the services, adapting the business to suits the needs of their consumers. IE. Adding gas fitters to service the increased demand for gas installations.
-
“The successful plumbing business are able to adapt to the needs of the consumers”
Ability to quickly adopt new technologies
Although the industry has been slow (relatively to other industries) in implementing new technology. The same can be said for construction as a whole, the successful plumbing business is quick to innovate adopt new technology that makes services more efficient and streamline workflows.
Having a good reputation
Successful plumbing business can bank on having a good reputation and reap the benefit of that.
- Those businesses have a recognised band. Customers, Staff and Suppliers know that brand and the values associated with it (quality, professionalism or reliability as examples)
- Those businesses also collaborate with like-minded trades (carpenters, builders, painters).
What to do next
That is a lot of information to process but it’s important to not be overwhelmed or try to bite off more than you can chew. Write out a list of 10 ideas from this insight, put the list somewhere you will look at it every day and just implement one new idea a month if your an ace you can go harder later but start off slow and tick the idea off after each month.
Download your free cheatsheet to improving your plumbing business.
Disclaimer: This article should not be intended as your primary source of Tax, Accounting or Financial Advice. Always contact your Accountant for help.
An accountant with nearly a decade of industry experience, Joshua has worked extremely close with his clients, educating and guiding them with through building, growing and preparing their businesses for the future.
