How to Build a Million-Dollar Plumbing Business
Most people go their entire lives without earning a million dollars, so it sounds impossible that some businesses might be able to achieve this milestone within one year. But it is possible. Plenty of Plumbing businesses have achieved this goal, and you can too!
1. Focus on your Pricing
There are two main pricing models that most profitable plumbing companies operate from: either they do a lot of cheap plumbing services to a lot of people or they sell a fewer more expensive plumbing services to a more limited buyer list.
Neither model is inherently better than the other, but having higher priced services has many great benefits. Just simply choose which model your company is going to use. It is better to decide on this early on rather than aimlessly working and pricing your services randomly, you will quickly confuse your customer base.
2. Find and Attract Your Golden Customer
Once you have decided on one of the two models above you need to know exactly what kind of person would be in need and pay for that kind of service. You need to know their age range, income level, Education level, marital status, and what side of town they live on.
Depending on which pricing model you chose from above will have drastic different results in your target market or how I like to put it as your Golden Customer since they are the ones they will be bringing you your gold aka money.
Inexpensive plumbing services pricing model your golden customer may look like this:
Age Range: 18-45 yrs old
Income Level: 10k-60k
Education Level: High School
Marital Status: Single
Location: Area Specific
If you choose the inexpensive plumbing services pricing model you will need to constantly keep your costs low with your prices. And you will continually deal with high turnover with your low cost employees. Also callbacks will be something you will have to deal with the kind of employees you can afford. You will have to justify your price to many of these kinds of customers.
The more expensive plumbing services pricing model your golden customer may look like this:
Age Range: 35-75+ yrs old
Income Level: 70k-150k+
Education Level: College Degree
Marital Status: Married
Location: Area Specific
If you chose the more expensive higher ticket plumbing service pricing model you will need to constantly keep your image superior. You will need to have a good Unique Selling Proposition aka USP to ensure customers call you instead of your competition.
3. Be The Best
There are plenty of mediocre plumbing companies out there, but the odds are good that these plumbing companies are not making a million(s). If you want to hit these big potential plumbing profits, you’ve got to bring something to the table that WOWS your golden customers that generates buzz within your marketplace.
How can you tell if your company is the kind that WOWS its golden customers?
Look at your current customers, if you are not getting absolutely great online reviews or positive comments sent to you, chances are your golden clients are not as ecstatic about your plumbing services as they need to be to hit your target sales.
Ask your existing customers what you can do to make your plumbing service better and then put their recommendations into place. They’ll appreciate your efforts and will go on to refer other golden customers to your plumbing company in the future.
4. Hire All-Stars
Hitting $1 million in revenue during your first year is no small feat, and you certainly aren’t going to achieve this goal with a team of underperformers. Yes, hiring these people will be cheaper and easier, but you’ll pay for this convenience when your end-of-the-year sales numbers come up short.
Instead, you need to hire All-Stars, and the fastest way to do this is to do what Donald Trump says to do “I have a very simple rule when it comes to management: hire the best people from your competitors, pay them more than they were earning, and give them bonuses and incentives based on their performance. That’s how you build a first-class operation.”
If you chose the higher priced services you will be able to afford to hire the All-Stars.
5. Measure Everything
Finally, if you want to shoot for the profits moon, you need to be absolutely radical about collecting data and acting on it. If you aren’t able to collect and carry out data and tests on your own, bring on a rock-star analyst who can help you make sense of your numbers. When every penny counts towards reaching your ‘$1 Million A Year’ goal, you’ll find these people to be worth their weight in gold.
Growing a company to $1 million in revenue in one year isn’t easy, but it is possible. Stick to the tips above and be ruthless about profitability, and even if you don’t hit this particular goal, you will at least earn more profits than you would have if you did not implement this 5 steps!