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This Article Will Focus On customer service 101 and one very simply way to Increase Plumbing Profits within your company. In simple terms that I understand it means generating between 15% and 25% net profit and putting at least $100,000 per year in your wallet.
Being A Plumbing Contractor Is Not Rocket Science
It is a whole lot harder because it requires:
- Aptitude and problem solving skills of a rocket scientist
- Parenting to continue where employee’s parents left off
- Strength and stamina of a professional football player
- Patience of a saint under constant stress and pressure
- Iron will of a tough coach who can and will say NO!
- Skills of a professionally trained marriage councilor
- Sales ability of a professional with appearing salesy
- Reading and understanding financial statements
- Knowing how to delegate without abdicating
Only So Many Hours In The Day
This One Tip Has Doubled And Tripled Profits for a number of our contractor clients including Plumbing Contractors. It is very easy for Plumbing Contractors with profits less than 2%. It is a bit more difficult for Plumbing Contractors with net profits in the 5% to 10% range and Plumbing Contractors with net profits in the 20% plus range are already doing this rudimentary step and have moved on to higher and more complex profit generating systems.
There Is One Nearly Insurmountable Hurdle and it has defeated many healthy strong plumbing contractors. I am talking about guys that weigh in over 280 pounds and over six feet tall with huge muscle mass. It is the mental attitude or paradigm of…
I Know What Is Best For My Clients
It’s Time To Wake Up To An Overflowing River of cash flow and profits beyond anything you have seen in the past or continue sleeping on the hard mattress of regret under the cold blanket of lost opportunity by refusing to change old tired worn-out wealth limiting habits that are keeping you from your best.
Right Or Rich every Plumbing Contractor picks one or the other to a degree because nobody can do both for very long. Pick one on purpose or the other by default. The more important it is to be right the less you will be rich and the reverse is true.
I Have Asked Thousands of homeowners, commercial property owners, landlords, commercial space tenants and even a few car buyers, computer buyers, ship buyers and consumers about their overall buying experiences and one common thread appears over and over; they got what they wanted and were happy repeat customers and clients who refer their friends and family or they didn’t get what they wanted and made the company owner’s life a living hell.
Develop Your Script Book and record the questions and answers that you find encourage people to open up and get to the fourth level of truth because when you do the service you will render will be far in excess of the money you earn.
Questions For social gatherings are more casual, business meetings are more focused, network events somewhere in the middle, focus group events very intense and tightly focused.
Two Powerful Questions To Ask People
- What are your most important criteria in making a purchase decision?
- What is the one thing you remembered about your purchase?
Question #1 Most Common Answer “Price” because for most people it is a conditioned response they learned early in life. It is similar to ringing a bell; it gets people’s attention; Stimulus & Response. If you ever get mugged, and I hope you never do; yell “FIRE” because everybody wants to see a fire but very few people will respond to a cry for “HELP”.
Question #2 Most Common Answer “I could or could not get what I wanted!” There is a lot of money making power in this answer and it does not come fast or easy. In fact in most cases it takes a while to get to it…because:
Truth Is Four Levels Deep
- What people want to hear
- What people want to believe
- Everything else out in the world
- The Truth of what they really believe
Plumbing Company Owners if you want massive increases in your cash flow and net profit pay attention to this one thing:
Give Them What They Want Not What You Think Is Best!
If I Had A Dime for every time during a coaching session a Contractor told me how they ignored what their customer or client was asking for because they were thinking of what they were going to say, I would buy a brand new sports car to take my girlfriend, wife, sweetheart, Sharie on another first class sightseeing road trip across America!
Listening With Empathy and understanding is one of the most valuable gifts one person can give to another person. Just listen and let someone speak until they are finished. Plumbing Contractors who continually make deep noises from the chest sound like important messages from the brain have a captive audience and it costs them a lot of profits.
Listen To Your Plumbing Client and let them finish making a point about something they feel is important. When there is an appropriate break in the conversation ask for clarification. For example the new deck needs to be really strong…could be an important point…perhaps they entertain a lot of sumo wrestlers or professional football stars…show you care by asking. The preceding examples could save you a lot of money by not under-building something and in fact could make you a lot of money with add on sales.
Observing like a professional detective. Some of them make a lot of money and the best ones have a keen eye for observation. Much can be said about this and I recommend you read the book “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko.
We Had Several Repeat And Referring Clients in our Construction Companies and one in particular lived in the Magnolia neighborhood of Seattle. A sweet little old lady on a “Fixed Income” that we did a substantial amount of work on her house.
Every Time, Like Clockwork when one of our Plumbing Service Professionals would quote price for a new project she would almost break down in tears. Her voice would crack and her face would take on the saddest look you have ever seen while she talked about how she may have to do without something special in order to have the work done. The funny thing is whenever I would see her at a social event I would ask how she was able to survive on a “Fixed Income” of more than $8,000,000 a year. Her response as always, “It is not easy but thank goodness the house and car is paid for and I have no other debts”.
We Did A Very Substantial And Highly Profitable Amount Of work for her, her friends and neighbors and they were all raving fans! Why? Because we listened, asked questions, observed and always, always, always giving a little more in value than we took in dollars. The key is always give a fair price that insures your company will earn a handsome profit and hire professionals to do excellent work.
One Word Of Caution And I Am Very Serious About This!
When And If Your Plumbing Company enjoys net profits over 25% just expect to be in a heap of trouble because nobody and I mean nobody will believe it. Getting loans and lines of credit will be almost impossible unless you have a Board of Advisors. If you are successful in proving how well your Plumbing Company is doing you will discover a pile of long lost friends and relatives looking for your help and support.
Been There, Done That, Got The T-Shirt, Tattoo And Sang A Song About It. There is a way around it and if you have your Board of Advisors in place they can guide you through it. I know this sounds funny to some readers and there are a number of other readers who know exactly what I am saying. This phenomenon is not limited to Plumbing Contractors or other Contractors; it happens to everyone who gets “Lucky” which is when “Hard Work, Planning, Blood, Sweat, Tears, Failures, Successes and Long Hours Meets Opportunity”. The key is for you to offer a hand up, not a hand out and the Universe will do the same and more for you!
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 – “May continue being the great person you are and always live in a great way as you are now so that you are always and forever more a blessing and inspiration to those around you. My expectation for your future is that you continually draw upon that endless source of energy and Universal Life-Force which is in you and knows no boundaries to influence others with your thoughts, deeds and actions which will inspire them to draw upon the Universal Life-Force in them so that we may all achieve success, happiness and fulfillment.”
Randal L. DeHart, PMP, QPA
**Editors Note This is one of those paradigm shifts you must make to get your business to the next level. I suffered from it myself, in your quest to be the smartest plumber in the room you lose track of what your customer is telling you and you give them the option that you think is best for them. I was given a piece of advice from a well respected plumbing contractor when I was very young and I didn’t hear it until I was 41. “You have two eyes, two ears and one mouth, you can see and hear a heck of a lot more than you can say so shut up and listen.”