Plumbing Companies Listen Up. M.A.P. Vs P.A.M. Helps Avoid Massive Grief!



Most Plumbing Companies Are Started By Plumbers With Technical Skills

They Wanted More Than A J.O.B. (Just Over Broke) ? And they had dreams of working fewer hours and earning more money with long vacations and lots of toys!

All Too Often Their Reality Check Bounces ? and they end up worse off financially than they would have been if the kept their job.

The Little Leaks Sink The Ship ? Not the big gaping holes. The big gaping holes get the Plumbing Contractors attention and are fixed.


All Highly Skilled Construction Tradespeople ? Possess a higher than average intellect and very adept problem solving skills because they operate in a constantly changing environment. Every day brings new challenges. In some ways it is more difficult than being a doctor since doctors have one make and two models, male and female.

The Skills That Make A Great Plumber ? Are primarily technical; however, the skills that make a great Plumbing Company are strategic. To borrow from several authors who have written extensively on the subject ?If the Grand Strategy is Correct ? The enterprise will prove successful; however, efficient operations cannot overcome bad strategy? ? Paraphrased from Sun Tzu.

20% of your customers normally generate 80% of your net profit

A Universal Truth 80/20 Rule

20% of your customers normally generate 80% of your net profit

A Universal Truth 80/20 Rule

20% of the goods or services youÿsell contributeÿ80% of your revenue
20% or 2ÿout of 10 of your staff create 80% of theÿvalue forÿyour clients

For Example ? A backhoe takes longer to mobilize and demobilize on and off a job site than a shovel, and it takes more skill. Tactics means using a shovel for all earth moving projects. Strategy means knowing when to use a backhoe and when to use a shovel.

This Is The Most Popular ? And least profitable way to start and operate a Plumbing Company. Plumbing Contractors have a paradigm of ?how things are done? which mirrors exactly what they did while working for somebody else. Install pipe, valves and fixtures!

The Bouncing Reality Check

When They Are Awarded A Project ? From a friend or relative they do what they have always done?.put on their tool-belt and get to work installing pipes, valves and fixtures!

They Perceive ? Having little or no overhead and since they want to make a name for themselvesÿthey work cheap, I mean real cheap.

SomeÿBig Hearted ? Good naturedÿPlumbing Contractorsÿare under the illusion that if they work real hard and keep their prices low theirÿPlumbing Company will magically prosper. Theÿreality is theyÿown something less than a J.O.B. which is costing them money and it offers little or no health insurance,ÿno retirement fund and no benefits!

Technical Know-How Is Every Plumbing Contractor?s Enemy #1

WhenÿTax Forms ?ÿNasty letters,ÿassorted mail and phone calls from the local, city, county and state tax agencies and theÿIRS 940 and 941 noticesÿpile is when the Plumbing Contractor startsÿthinking about their contractors bookkeeping servicesÿproblem. All too often they go on the hunt looking for a cheap bookkeeper and really get hurt


?In construction, the real money is made in the office; not in the field? ? Randalism

?If you think it?s expensive to hire a professional to do the job, wait until you hire an amateur.? ? Red Adair

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