Maximize Vs. Optimize Your Plumbing Company

Plumbing Company
The ever present 80/20 rule.

This Article Will Focus on helping plumbing contractors like you generate the most long term profits from your Plumbing Company by introducing you to the concept of Optimizing Vs. Maximizing.

The 80-20 Rule For Plumbing Company Success

Plumbing Company
This is a universal truth

The First Place – To start is to understand how the 80/20 Rule applies to your Plumbing Company.  In short 80% of your profits come from 20% of your customers or clients and yet every Plumbing Contractor we have ever met who is struggling financially is focusing their time, money and efforts on serving the 80% of their customers or clients who generate 20% of their Plumbing Company profits.

The Most Common Reason – The less profitable a customer or client is the more likely they are to complain and demand attention, “The Squeaky Wheel Gets The Grease”. They use “Infantile Omnipotence – Newborn babies learn by doing. When they experience the least bit of discomfort they automatically cry which causes large friendly beings to appear and magically fix whatever issue they are experiencing. Unfortunately some people never mature and convert this concept into a manipulative behavior of getting upset, angry or violent in order to get what they want.” – Randalism.

Some Plumbing Company – Owners feel that all staff members from the laborers to the Project Managers need to hustle and run everywhere and if they are giving less than 110% to the job they are not doing enough.

Some Plumbing Contractors – Like to make sure everybody knows they can be replaced at any time day or night which makes people uncomfortable and likely to search for another job elsewhere. If an employee of your Plumbing Company spends just ten minutes a day on your payroll looking for a better job it can cost you a lot more profit than you gain by being the tough guy or gal. These Plumbing Contractors use several variations of the management concept described by Douglas McGregor, an American social psychologist.

Theory X Authoritarian Management Style

  • The average person dislikes work and will avoid it he/she can.
  • Therefore most people must be forced with the threat of punishment to work towards organizational objectives.
  • The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

When Plumbing Contractors – Treat their tax preparer, banker, construction accountant, suppliers, construction attorney, financial planner (what should have been his Board of Advisors) vendors, bookkeeper and everyone they come in contact with like an enemy they are likely to lose money due to bookkeeping errors, slow service and general lost time.

If Plumbing Company Profits – Averaged over the past five years are less than 10% you may want to contact your construction accountant. If you need one you call Sharie 206-361-3950 for a no-charge consultation.  In addition you may want to look into developing a Business Strategy Program specific to the needs of your Plumbing Company.

There Are Many – Fast, easy and safe ways to increase your Plumbing Company profits on our website and put more money in the bank to operate and grow your business. Some are FREE and you can implement them yourself and some cost money.

In The End There Is NO FREE LUNCH! – To my Plumbing Contractor brothers and sisters who insist to learning by experience and

Plumbing Company
No Free Lunch Today

being the Do-It-Yourselfers you have a paradigm which is not serving you well and in fact could be costing you many millions of dollars in missed opportunities. The good news is I really understand at a deep level why you are doing it and believe it or not it hurts me when I see you do it.

Learning By Experience – Has one simple price, your life. Don’t take my word for it, visit senior citizens and ask them what they would do different if they knew early in life what they know now. Do what you do best and outsource the rest. It is all about having a Strategy That Works!

Maximize Vs. Optimize Your Plumbing Company

Your Plumbing Company Is Like A Car – A new car that is optimized by driving it with reasonable care and caution on paved highways at posted speed limits can be expected to last 100,000 or more during its lifetime. That same car maximized by driving it on an oval race track as fast as it will go can be expected to last closer to 10,000 miles during its lifetime and possibly a lot less. Maximize your Plumbing Company and it may generate high profits for a short time.

Optimize your Plumbing Company and it could generate an income stream to feed you and your loved one’s needs for a lifetime. Add a strategic plan and it could continue feeding your family and your heirs long after you are gone.

Maximize Your Plumbing Company

If You Maximize Your Plumbing Truck / Van – With every tool you think you may need and loading it to the sky with all the parts and inventory you think you may need and drive hard and fast while thinking you are maximizing that resource perhaps it is time to re-examine that method. In the end it is not a good thing.

Benefit – Hopefully fewer trips to the plumbing supply houses, Lowes, Home depot or other places which will save you a little bit of time and money.

Costs – You will end up spending more money for each mile you drive because you use more fuel, your brakes will wear out faster from having to stop with more weight. Your tires will wear down quicker and your vehicle suspension parts will need to be replaced sooner rather than later. You will have money that is tied up in tools, equipment and inventory that could be invested elsewhere and make more money for you. Even worse, if you have any credit card debt or loans that money could be used to pay them down and reduce your interest expense.

Risks – If you involved in a traffic collision and the investigation reveals that you have exceeded the Gross Vehicle Weight Rating (GVWR) of your truck or van then it is likely your insurance may not cover the damages. In addition you may be liable for negligence charges. I strongly recommend you contact your commercial insurance agent and your attorney for their advice on this matter and update your operations manual accordingly.

Optimize Your Plumbing Company

Stock Your Truck – Wisely by having a strategy that serves a niche market and uses the 80/20 Rule and you will need a fraction of the tools, parts and equipment. Another money saving tip is to only keep the items on board that are used every week to reduce your GVWR and save money on every mile you drive.

Plumbing Company
No Money in Chaos

BenefitThere is no money in chaos. By keeping your trucks organized and serving a niche market means fewer visits to your supplier which will save you even more time and money. Saving time and money by not having to hunt for something in your truck will add even more profits to your bottom line. When you understand What Ten Minutes Cost Your Company and develop your Business Strategy your profits will grow and be flying high like an eagle!

About The Author:

Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington, www.FastEasyAccounting.Com  He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Plumbing Contractor, General Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist and Bill.Com Guru.

I leave you with this heartfelt blessing – “Know deep in your being that you are part of the oldest and most respected industry in the universe, construction. Everything began with The Creator who built everything in seven days and He had a Son who was a carpenter. Which means you and all of our brothers and sisters who have been, are now or will be involved in construction are and always will be respected, admired and loved for the work and sacrifices you make every day doing whatever it takes to protect the health of the world.”

Warm Regards,

Randal L. DeHart, PMP, QPA

By Randal DeHart

Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor and QuickBooks For Contractors Expert. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. Visit to learn more. Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve.

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