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Tony Gee • Aug 11, 2021

A Step By Step Guide to Starting a Plumbing Business

How To Start a Plumbing Business

Starting a plumbing business can be a very lucrative opportunity. You may have heard of famous success stories of US plumbing companies, like Roto-Rooter, ARS Plumbing and more. Of course, this kind of success requires the right combination of skilled tradesmanship, dedication and business acumen. Many plumbers start their career by working as an apprentice or a contractor of another plumber. But as they grow in trade and achieve the “expert status”, it is normal to want to branch off and start a plumbing business of their own.  In this article, we’ll discuss the steps you need to take to start a residential or commercial plumbing business.  This is all the professional advice plumbing business owners wish they would have known when first starting out.


Step 1: Earn Your State-Required Certification and Plumbing License


The very initial first step to starting a plumbing business is to earn your required certifications and licenses. You cannot legally run a plumbing company without proper licensing and it can take two to six years to become a licensed plumber. Each state or region has specific requirements. Here is a quick breakdown on how you can become a licensed plumber:


  1. Serve as An Apprentice


A plumbing apprenticeship is a paid on-the-job training under a licensed or master plumber. It helps you gain experience, build your network and prepare for life on the job.  Apprenticeships generally last from 2 to 5 years and are a mandatory aspect of becoming a plumber.


  1. Get Certified


Once you’ve completed your apprenticeship program, you are now qualified to get your own plumber license and be called Licensed Journeyman. During this stage, you can begin to accept jobs and perform plumbing tasks without any supervision. However, you first have to submit the necessary documents and pay the necessary fees required to the licensing agency in your state. You will also be required to pass the licensing exam before you become a Licensed Journeyman.


If you wish to become a licensed master plumber, you must have 1 to 5 years of documented plumbing experience, depending on the state laws. In addition, you must successfully pass an additional exam and meet the mandated state required before you are called a licensed master plumber. 


If you have a high school diploma or General Education Development (GED), you can enroll in a trade school or certification program at your local college.  If you are located in San Diego, consider enrolling at the PHCC Academy of San Diego. The academy offers trade certification programs for the Plumbing-Heating-Cooling Industry, including Journeyman Plumbing Apprenticeship and HVAC Service Tech Certificate. We also provide regular UPC Update classes and other industry-specific courses throughout the year.

Enrollment Requirements


To enroll in PHCC Academy of San Diego Training Programs, students must::


  • Be at least 18 years of age at time of enrollment
  • Pass the Math Entrance exam with a score of 70% or greater
  • Pass the English Entrance exam with a score of 70% or greater
  • Attend the Enrollment Interview and be granted acceptance into the program
  • Pay applicable administrative fees and first two months of tuition, minimum


Most programs will generally last two years long and involve working with waste systems, water lines, plumbing fixtures and related appliances. You will also learn the working rules, plumbing codes, safety practices and various regulations surrounding the plumbing industry. General studies pertaining to math, drafting, physics and blueprint reading will also be covered. These vocational training programs will help you gain the necessary skills and stand out to consumers as a trustworthy professional.


  1. Get Your Contractor’s License


To become a legal plumbing contractor, you’ll need to apply for a contractor’s license. Holding a contractor’s license allows you to put up a plumbing business, bid on projects, hire licensed plumbers and apply for the necessary permits for projects. In addition to your plumber’s licenses, several states require plumbing contractors to obtain a generic contractor’s licenses. A contractor's license can be issued to individual plumbers or business entities depending on the state. License application requirements vary by state, but contractors are generally required to submit the following:


  • Licensed plumber information
  • Application fee
  • List of officers or members
  •  Surety bond
  • Worker’s compensation insurance information
  •  General Liability Insurance


Step 2: Create a Business Plan


Every successful business starts with a plan. A clear plan will help you map out the specifics of your plumbing business and discover the unknowns. The Small Business Alliance offers you a step by step guide on how to draw up a business plan. Ideally, the plan should list out the following:


a)  Business Name


Choosing the right business is essential and challenging. If you are stuck, you can just stick to your name (if it is easy to look up), or choose an adjective that sets you apart from the competition, for example, Amazing Plumbing & Heating, Modern Plumbing and Rooter etc. If you operate a sole proprietorship , you might want to choose a business name other than your own name.


b)  Your startup and ongoing cost


The costs involved in setting up a plumbing business are minimal.  Some of the initial costs expenses include:

  • A service truck, you can go for a used vehicle or purchase a brand new one.
  • $1000-$4000 on a website
  • $500-$1000 on the uniforms and business cards
  • $2000 on office equipment


Plumbing equipment can add up quickly, like assorted pipes and fittings,  pipe wrenches, extension cords, cast iron pipe cutter, propane torch, circular saw, cordless screw gun, whole hog right angle drill, drain cleaning machines, sewer camera, jackhammer, etc. 

The ongoing expenses in your plumbing business may include office expenses, insurance, vehicle maintenance and the replacement/ maintenance of tools.


c)   Target Market


Decide the areas you will serve and do a quick analysis to ensure there is a need for plumbers. Find out what types of plumbing are needed and who your competitors are. Don’t forget to assess the demographics (lifestyle, age, building type and average income) of your area. You may uncover some good business insights.


d)  How Much You’ll Charge Customers


You can choose to charge an hourly rate or a flat rate. However, the average price for plumbing services tends to range between $160 and $430 for a typical job. This works out to an average hourly rate of between $45 and $150.


e)  What Are Your Business Goals?


If you want your plumbing business to last, you need to have a goal. Do you want to specialize in higher-grossing specialties, such as new construction projects or sewer relining?  Do you want to hire a team and expand your operations to new regions? Do you want to remain independent and have more freedom to take a vacation when you want? Take to come up with achievable goals, write them down and hold yourself accountable.


Step 3: Form a Business Entity


Creating a legal business entity is very important. You should sort this out from the start, so there are no crossed lines with your professional and personal accounts. The most common types of business structures include:


a)  Sole Proprietorship


A sole proprietorship is an informal, unincorporated business entity that is NOT legally separated from its owner. That means, profit and losses are reported on the individual’s tax return and the business owner is personally liable for all debts and risks.  For this reason, sole proprietorships are not usually the best option for most small business owners.


b)  Partnership


A partnership is a business owned by more than one person, which is not formally organized. The owners are responsible for filing taxes under the name of the partnership and are responsible for any actions taken against the business. Just like a sole proprietorship, your personal assets are not protected in the event your plumbing business is sued.


c)  Limited Liability Company (LLC)


A Limited Liability Company is a United States business structure that provides the personal liability protection of a corporation with pass-through taxation of a sole proprietorship or partnership. Forming an LLC is the easiest way of structuring your plumbing business to protect your personal assets in the event your business is sued. An LLC can be owned by one or more people, who are known as LLC members. An LLC with one owner is called a Single-Member LLC, while an LLC with more than one member is called a multi-member LLC.


d)  Corporation


A corporation is a legal business entity that is shared by shareholders and is run by a board of directors. Corporations are created through registration with the state. Although they provide numerous tax benefits and limited liability, they are still required to follow more complex operating procedures than their counterpart, the Limited Liability Company (LLCs). It is advisable to contact a local attorney or a local mentor in the plumbing industry for guidance, so you can be sure that everything is properly documented.


Step 3: Register for Taxes


Once you have created your legal entity, you will need to register for an Employer Identification Number (EIN) on its behalf. An EIN is a unique nine-digit number assigned by the IRS to business entities operating in the United States. It is your permanent identification number and can be used immediately for most of your business needs. You can acquire your EIN for free via the IRS website, by mail or via mail. Note that depending on the legal entity you choose, you might have varied choices on how your plumbing business will be taxed.

You will need an EIN when:


  • Applying for business licenses
  • Opening bank accounts
  • Taking out business loans
  • Forming Corporations and LLCs
  • Filing tax returns
  • Building business credit
  • Hiring employees


Once an EIN is issued by the IRS, it is permanent and does not expire. It stays for the life of the business until the ownership or structure changes, or other exceptional circumstances.


Step 5: Open a Business Bank Account and Get a Biz Credit Card


Opening a business bank account is one of the most important things you can do when starting a plumbing company. A business bank account plays a vital role in growing your plumbing business, while protecting it and yourself at the same time. It allows you to keep track of business expenses, simplify tax reporting, and deposit payments under your company name.


You should have a business bank account as soon as your plumbing business has an EIN or begins to accept and make payments. The reason is because the IRS requires any incorporated business to have a business bank account. The rule applies whether the business is structured as a corporation, Limited Liability Company (LLC), a partnership or a sole proprietorship. A sole proprietorship is not legally required to open a business bank account, but you should get one anyway.


Before heading to the bank to open a business account, make sure you have all the necessary documents. Depending on the structure of your plumbing business, you won’t need all of the documents listed below, but this list should give you a starting point:



  • Employer Identification Number (EIN)
  • Articles of organization or incorporation
  • Certificate of good standing: Your bank may require you to provide a certificate of good standing, issued by your state, showing you are up to date on taxes and other requirements. 
  • Personal Identification
  • Copy of your DBA filed with the state
  • Copy of partnership agreement


Step 6: Acquire the Necessary Permits


Most cities and counties and some states require businesses to obtain a permit before performing plumbing installations, repairs, replacement or alterations. Minor repairs, however, are exempted from permitting requirements. Failure to obtain necessary permits can result in hefty fines, or even cause your business to be shut down. In most states, it is necessary to obtain a plumbing contractor’s license, a plumbing permit, and/or a plumbing license. Certain other state permits and licenses may be needed to operate a plumbing company.


Step 7: Get Business Insurance


As a plumbing business owner you’ll be exposed to a whole host of risks that you wouldn’t have had whilst on wages. There’s the risk that you damage someone else’s property, or worse, that you cause personal injury to another person. These risks are so great that most states require that licensed plumbers hold mandatory insurance in place to cover such risks. This type of policy is known as liability insurance.

It’s the most common form of insurance for any trade business, not just plumbers. It will cover you in the event that you cause property damage or personal injury to a third party as a result of negligence. Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.


Step 8: Bring Your Brand to Life


A few steps back, you gave your plumbing business a name, and now it is time to bring that brand to life. Your brand is what your company stands for, as well as how your business is perceived by the public. Having a strong brand will help your plumbing company to stand out from the competition.


Before you begin designing your logo and other visual aspects, first identify your brand's vision, mission and core value.  As a service-based business, it is advisable to start with values, such as integrity, transparency and honesty. Try coming up with at least five values that will guide you in everything you do. 


Next, think about the various visuals that will represent your brand. A graphic designer or brand specialist can help you make the correct choices. However, it is recommended that you have a general idea of what you need before you get started.


Do you want your professionalism to be the focus of your brand? Maybe you’d like your brand to be more representative of hard work and strength. All of these aspects will be tied together in your logo, which you’ll use on your website, your truck and any branded material. No matter what look you go with, remember to keep your core values at the center of everything that you do in your small business.


Step 10: Market Your Services



The best way to get customers is by promoting your new plumbing business. There are many ways you can market your service to reach your target audience.  Here are some of the proven marketing techniques for a new plumbing company:


  • Referral Marketing


Trust is everything, when it comes to any service-based business. Referral marketing is one the best ways you can build trust. If you have a lot of experience in the plumbing field then you should have contacts in the industry. Build a reputation if you have worked under master plumbers and market your experience.  You can also consider partnering with businesses that share a clientele with you. Your partners could be plumbers with different specializations or they could even be general contractors, electricians, property managers and the like. Basically, you should give your partners a bonus, every time they send you a new customer.


  • Local SEO


SEO is what enables your plumbing company to be found online by the people who are looking for your services. SEO is the art of optimizing your website for specific keywords that your customers are searching on search engines. Unlike other forms of digital marketing, SEO will not yield immediate results. Plumbers must earn the trust of Google over time by establishing a well-rounded web presence. That’s where Strictly Plumbers Inc. comes. We make all the complicated SEO stuff easy to understand and keep it simple for you. Hire us and we make it happen, no need to stress.


  • Plumber Website


As a plumbing business owner, having an effective website is essential to standing out of your potential customers. Your plumber website is often the first impression of your company. What’s more is that 94% of the factors that impact that first impression are related to your website’s design. If someone likes the design and functionality of your website, they are more likely to stick around longer and potentially become a customer. Your website’s design could also determine how many leads and customers you get from your plumber website. Give us a call or browse our website to learn more about our Plumber Website Design plans.


  • Google Ads


Google AdWords, commonly known as Google Ads can be highly effective when it comes to getting new leads for your plumbing business. Creating a successful Google Ads campaign starts with following Google’s criteria for advertisement, as well as, targeting the right keywords and demographics. If the campaign is conducted without an effective strategy and proper oversight, your plumbing company can be exposed to major losses, at worst, a weak ROI at best. That’s why it is advisable to hire a professional Google Ads specialist, such as Strictly Plumbers. Click here to learn more about Google Ads for Plumbers.


Step 11: Hire a Good Dispatcher


Your dispatchers are critical to keeping your plumbing business running its best.  Your company’s dispatcher plays an important role when it comes to keeping your plumbers performing at a high level and delivering awesome customer service on everything from emergency class to sales opportunities.


Thus, it is essential to make sure that you have the right dispatchers for your plumbing business.  Whether your company relies on dedicated dispatchers or combines CSRs and dispatchers into one position, the people working in those roles should have the right skill set and temperament. Tony Gee knows the best strategies that make a successful plumbing dispatcher. Click Here for Free Dispatcher Training.


Step 12:  Invest in Sales training


Sales training involves learning how to upsell and how to provide value and create loyal customers. The mistake many plumbing companies make is to quickly up-sell products to customers who may not need those products, rather than focusing on providing a professional experience. Our sales training for plumbers and employees equips you with a professional sales process to maximize your selling opportunities and increase your weekly revenue. Click Here for a free sales training. The trainer in this video is Tony Gee. Tony was a plumber for 15 years prior to studying marketing. He is the owner and founder of Strictly Plumbers Inc., which has about 20 staff and has helped approximately 240 plumbing business owners throughout the United States.


Tony Gee certainly knows what it takes to run a plumbing shop generating 1 million per month! And because he is so passionate about seeing small to medium plumbing businesses grow, he is sharing valuable tips you need to know to start making money with your new plumbing company.


Step 13:  Hire more plumbers


Hiring the right plumbers is one of the most important and also painful parts of managing a plumbing business. Talented, experienced plumbers are becoming harder to find. However, with some planning and forward thinking, you can still find the best plumbers for your team. Our Plumbing Hiring Test can help you build an awesome team and take your plumbing business to the next level. 

Once you have hired the right plumber, you need to train them to get bigger sales. Tony Gee can teach your plumbers how to esthetically turn a small plumbing job into a large plumbing to generate bigger invoices, even if your plumbers don’t have good sales skills. Tony has trained thousands of plumbers on sales training and has also given sales training presentations for plumbers for PHCC. Tony Gee is an affiliate of PHCC of San Diego. Click Here for Free Sales Training. Schedule an Appointment With Tony Today. 


Step 14: Manage your company


One of the hallmarks of any successful plumbing company is often the presence of a “Good Management System”. A good management system benefits every aspect of your plumbing company, including the executive, plumbers and customers.  Rather than hiring more people to handle the different tasks of your business, you can boost your productivity with custom-built software. We recommend you choose the following software for your plumbing company:



  • SkyBoss


SkyBoss is a cloud-based, mobile software that is specifically designed to streamline your plumbing business. This software has all the tools you need to take your plumbing business to new levels of performance and revenue. Its primary features include customizable price book, inventory management, plumber tracking and routing, task management, customer tracking, work orders, estimating, reporting, customer tracking, work orders and invoicing, as well as scheduling and dispatch. Click here to learn more and Schedule a Free Demo with SkyBoss.



  • Service Titan


If you’re looking to grow your plumbing company and increase revenue, then you should invest in Service Titan. It is a cloud based platform that helps plumbing business owners handle all aspects of field service management, from scheduling to invoicing to sales. Service Titan has a particularly strong sales feature that allows plumbers in the field to make presentations to customers and close on the spot. This software is also ideal for dispatchers who have to handle a lot of calls and need more detailed information on customers right away rather than having to pull it out during the phone call.


 We’re Here to Help


Starting your plumbing business can be one of the best decisions you will ever make, but also one of the most challenging. Thankfully, you’re not alone. If  you need help getting more plumbing leads, the pros at Strictly Plumbers can helpStrictly Plumbers Inc. is the ONLY plumbing marketing company started by a master plumber, and we have been helping plumbing owners like you grow their business and increase revenue. After 15 years as a master plumber in San Diego, working for the most reputable companies in the industry, Tony Gee decided to pursue his passion for online marketing for plumbing owners. Click Here to schedule an appointment with Tony

 

 

 

 

 

 

 



By Tony Gee 06 Mar, 2024
In the competitive world of plumbing services, standing out and offering unparalleled customer service can make all the difference. That's where PlumbLine comes in, a game-changing answering service designed specifically for plumbing companies. What sets PlumbLine apart is its innovative pricing model: charging exclusively per booked call. This approach not only ensures cost-effectiveness but also aligns directly with the success of your plumbing business. Tailored for Your Success Understanding the unique challenges plumbing companies face, PlumbLine offers a bespoke solution that caters specifically to the needs of this industry. Our service ensures that every call is answered with professionalism and expertise, acting as an extension of your own business. The per booked call model means you only pay for results, making it a risk-free investment in your company's growth and customer satisfaction. One of the standout features of our service is the ability to book appointments directly into your company's scheduling software. This seamless integration ensures that the booking process is as efficient and error-free as possible, further enhancing the customer experience and streamlining your operations. How PlumbLine Works PlumbLine employs a team of highly trained professionals 24/7/265, who understand the nuances of the plumbing industry. When a potential client calls, our representatives handle the call with the same care and knowledge as if they were your own employees. They are trained to not only answer general inquiries but also to effectively book appointments, ensuring that potential leads turn into actual business. This efficiency boosts your conversion rate and, ultimately, your bottom line. Cost-Effective and Efficient By charging only for booked calls, PlumbLine ensures that your marketing dollars are spent wisely. This pricing strategy eliminates the concern of paying for services that don't directly contribute to your revenue. It's a straightforward, transparent approach that benefits your business by directly linking our success to yours. This model encourages us to work harder for your business, as our growth is directly tied to your success. Benefits Beyond Savings Aside from the obvious financial benefits, partnering with PlumbLine brings numerous advantages to your plumbing business: **24/7 Availability:** Missed calls are missed opportunities. PlumbLine ensures you're always available to your customers, capturing leads even outside of regular business hours. **Professional Representation:** First impressions matter. Our team handles each call with the professionalism and courtesy your customers expect. **Direct Booking into Your Scheduling Software:** Streamline your appointment setting process with our direct booking feature, ensuring efficient scheduling and customer satisfaction. **Increased Conversion Rates:** With expert handling of inquiries and appointment bookings, you'll see a significant increase in conversion rates, driving more business your way. Join the PlumbLine Family  PlumbLine is more than just an answering service; it's a partner in your business's growth. Our unique pay-per-booked-call model, combined with our industry-specific expertise and direct booking capabilities, makes us the ideal choice for plumbing companies looking to enhance their customer service and increase their revenue. With PlumbLine, you're not just hiring an answering service; you're investing in a tailored solution that grows with your business. Contact us today to learn more about how we can help elevate your plumbing business to new heights.
By Tony Gee 19 Jan, 2024
How To Implement KPI’s Into Your Plumbing Business Are you feeling overwhelmed trying to boost your plumbing business's efficiency? Key Performance Indicators (KPIs) might be the solution you need. As a plumbing business owner, understanding and leveraging KPIs can significantly transform your operations. KPIs are insightful data points that offer an objective outlook on your plumbing business's performance, spotlighting areas that need enhancement. They serve as your guiding beacon towards achieving your business goals. By implementing KPIs, you can join the 60% of plumbing businesses that have seen a boost in their efficiency. But how can you accomplish this? In this blog, we’ll cover the various types of KPIs you should integrate into your plumbing business. Marketing KPIs A crucial aspect of running your plumbing business involves keeping an eye on your marketing efforts . Specifically, marketing Key Performance Indicators (KPIs) offer insights into the effectiveness of your marketing strategies and are critical in making informed business decisions. Here are some marketing KPIs that you should consider implementing in your plumbing business: Cost Per Impression: This KPI measures the cost incurred for every individual who sees your advertisement. It helps gauge the financial efficiency of your marketing campaigns and assists in budget optimization. Cost Per Click: This is the cost an advertiser pays each time a user clicks their online ad. It's an essential KPI for digital marketing as it helps assess the cost-effectiveness of your campaigns in driving user engagement. Cost Per Lead: This KPI quantifies the cost of acquiring a prospective customer. It's crucial for understanding the effectiveness of your lead generation efforts, helping to identify the most cost-effective marketing channels. Cost Per Conversion: Cost per Conversion or Cost per Acquisition, measures the cost associated with converting a lead into a paying customer. This KPI is crucial as it directly relates to the profitability of your marketing efforts. Acquisition Costs: This encompasses all costs incurred to acquire a new customer, from marketing and sales expenses to any additional costs associated with onboarding. It’s crucial to track this KPI to ensure the profitability of your customer acquisition strategies. Marketing KPIs serve as critical tools for evaluating the success of your marketing strategies, providing tangible metrics to assess cost-effectiveness, customer acquisition, and overall profitability. By regularly monitoring and analyzing these KPIs, you can make data-driven decisions that optimize your plumber marketing efforts, improve your lead generation, and ultimately increase your customer base. Dispatch KPIs Effective management of your dispatch operations is another crucial area where Key Performance Indicators (KPIs) can make a transformative impact on your plumbing business. Monitoring dispatch KPIs helps to manage your resources efficiently, ensuring jobs are completed promptly while minimizing costs. Here are some important dispatch KPIs to consider for your plumbing business: Total Daily Cost: This KPI calculates the total expenditure of your dispatch operations in a day. It's essential for tracking your daily operational costs and identifying opportunities for cost reduction. Type Of Plumbing Calls With Dispatch: This KPI categorizes the type of plumbing calls received and dispatched. It provides valuable insights into the most common issues your business is called to address, allowing for targeted training and resource allocation. Plumbing Appointments: This KPI tracks the number of plumbing appointments scheduled in a period. It provides a snapshot of your business activity level, helping to manage resources effectively and plan for peak periods. Cost Per Conversion/Scheduled Appointments: This KPI measures the cost incurred for every appointment scheduled through dispatch. It helps assess the cost-effectiveness of your dispatch operations and is useful for optimizing scheduling and improving profitability. Cost Per Acquisition/Sales And Invoicing: This KPI gauges the cost of acquiring a customer through the dispatch system, from the initial call through to invoicing. It offers insights into the cost efficiency of your sales process and aids in identifying areas for improvement. Cancellation Rate: This KPI calculates the percentage of scheduled appointments that are canceled. A high cancellation rate may indicate issues with scheduling or customer service, making this an essential KPI for improving customer satisfaction and retaining business. Regular monitoring and analysis of these Dispatch KPIs will enable you to manage your dispatch operations effectively, leading to improved customer service, operational efficiency, and profitability. Sales KPIs In the realm of plumbing business, sales Key Performance Indicators (KPIs) provide in-depth insights into your business's profit-generating performance. They help you understand the effectiveness of your sales strategies , identify opportunities for improvement, and maximize your profitability. Let's delve into some of the crucial sales KPIs that your plumbing business should consider: Plumbers KPIs: This KPI tracks the performance of individual plumbers in your team. It can include measurements like the number of jobs completed, customer satisfaction rate, and the value of invoices generated. Monitoring these metrics can help identify star performers and areas where training may be needed. Leads Run Per Day: This KPI quantifies the number of potential customers or leads engaged in a day. It's crucial for understanding the effectiveness of your lead generation efforts and can help in planning and resource allocation. Estimates And Invoices: This KPI records the number of estimates provided and invoices issued. It provides insights into your business's sales activities, helping to track your conversion rates and measure the effectiveness of your sales process. Type Of Plumbing Job: This KPI categorizes the types of jobs your business handles, such as drains, water gas, water heaters, spot repairs to reroutes and repipes, and water line spot lines converted to a reroute or a repipe. This data can help you understand your market better and optimize resource allocation based on demand. Drain Cleaning Converted To Drain Repair Or Trenchless: This KPI measures the conversion rate of drain cleaning jobs to drain repair or trenchless jobs. A higher conversion rate indicates successful upselling, contributing to increased profitability. Water Filtration Systems Sold: This KPI tracks the number of water filtration systems sold over specific time periods (daily, weekly, etc.). It's a key indicator of your product sales performance and can help identify trends and plan for inventory management. Average Invoice And Monthly Sales: This KPI calculates the average value of your invoices and total monthly sales. It's crucial for tracking your revenue performance and identifying any trends or potential issues impacting profitability. By implementing these sales KPIs and regularly monitoring them, you can gain valuable insights into your sales operations. It can help you streamline your processes, improve decision making, and ultimately drive your plumbing business towards success. Growth KPIs For a progressive plumbing business, growth Key Performance Indicators (KPIs) are of paramount importance. They provide insights into the success of your growth strategies and the return on your investments. Here are some crucial growth KPIs you should incorporate: Average Invoice Marketing VS. ROI In Marketing: This KPI compares the average income generated from invoices against the return on investment in marketing. This metric offers substantial insights into the effectiveness of your marketing efforts and their contribution to your business income. Number Of Jobs by Plumbers Per Day/Month: This KPI tracks the productivity of your workforce by quantifying the number of jobs handled per day or month. It can help monitor individual performance, plan work schedules, and identify areas for improvement. New Hires: Counting the number of new hires shows the expansion of your team, which reflects your company's growth and the need to meet increased demand. Number Of Plumbers: Keeping track of the size of your team gives you insights into your operational capacity and helps in manpower planning. Overhead VS. Profit: This KPI calculates the proportion of your income that goes towards overhead costs and compares it to your profit. A lower overhead-to-profit ratio indicates healthier business performance. Gross Profit Margin: Calculating your gross profit margin as a percentage shows the proportion of your revenue that remains after subtracting the cost of goods sold (including materials and gasoline). This KPI is vital for understanding your financial health. Operational Costs: This KPI tracks costs related to daily business functioning, such as materials, gasoline, etc., helping maintain cost efficiency. Growth Rate Percentage Per Year: This KPI measures the annual percentage increase in your business, providing an overall sense of your company's growth and helping set future goals. Utilizing a competent Customer Relationship Management (CRM) system like Jobber or Housecall Pro can significantly simplify tracking these KPIs. These CRMs facilitate easy monitoring with just a click of a button. They are essential tools to help track job tags and leads, providing valuable insights to assist in growing your plumbing business. In conclusion, the implementation and diligent tracking of KPIs is an essential step to unlocking the potential of your plumbing business. Leveraging these metrics allows for improved strategic decision making, enhanced operational efficiency, increased profitability, and robust growth. However, navigating these KPIs can be challenging without expert guidance. Tony Gee is a trusted plumbing business coaching expert. With over 15 years of experience as a plumber and a proven track record of helping over 450 businesses flourish, Tony offers valuable insight and practical methods for KPI implementation. Don't miss this opportunity to turbocharge your plumbing business' growth. Schedule an appointment today to grow your plumbing business and make more money.
By Tony Gee 16 Jan, 2024
As a plumbing business owner, you may often find yourselves stumped on how to attract more calls and expand your client base. One of the key solutions lies in the realm of cyberspace - Google. With the internet being the go-to resource for 90% of consumers looking for plumbers in the past year, and 33% looking every day, it's clear that Google's reach is unparalleled. This search engine handles over 3.5 billion searches daily, making it one of the best platforms for getting plumbing leads. In this blog post, we'll delve into five strategic ways you can harness Google to increase your plumbing calls and take your plumbing business to new heights. 1. Google Guarantee Google Guarantee is a certification program offered by the world's most popular search engine, Google. It is a powerful tool designed to boost customer trust and confidence in local businesses, like plumbing services. To qualify for the Google guarantee program, the plumbing business owner must go through an extensive screening process, which includes background checks and license verification. Once approved, their business will receive a "Google Guaranteed" badge on their Google My Business listing, indicating that they have met Google's stringent criteria for quality and reliability. Why Is This Important For Plumbing Business Owners? Increased Credibility: The "Google Guaranteed" badge acts as a stamp of approval from Google and serves as a powerful tool to build trust with potential customers. Improved Visibility : Businesses with the Google Guarantee badge are displayed at the top of search results, increasing their visibility and chances of being contacted by potential leads. Higher Conversion Rates: The Google Guarantee program instills confidence in customers, making them more likely to choose a "Google Guaranteed" business over competitors. Better Reputation Management : With the ability to claim refunds for unsatisfactory service, businesses are incentivized to maintain high-quality standards and respond promptly to customer complaints. Google Guarantee can significantly impact your plumbing business. It helps attract more calls, sets your plumbing business apart from competitors, and strengthens customer trust in your services. So if you're looking to increase your plumbing calls and elevate your business, enrolling in the Google Guarantee program is a strategic move worth considering. So why wait? Contact us for professional help with setti for Google Guarantee today 2. Google PPC Google PPC (Pay-Per-Click) is a digital marketing strategy where advertisers pay a fee each time their advertisement is clicked by a user on Google's search engine. This marketing model essentially buys visits to your site, instead of attempting to earn them organically. Here's how it works: You create an ad and bid for it to be shown in Google's search results. When someone searches a keyword related to your business (e.g., "plumbing services near me"), your ad may appear on the top of the search results. Each time your ad is clicked, leading the user to your website, you pay a small fee to Google. Why Is Google PPC Important For Plumbing Business Owners? Increased Exposure: Google PPC helps your plumbing services appear at the top of Google search results, effectively increasing your online visibility. Targeted Advertising: You can specify the keywords that trigger your ads, ensuring that they are shown to potential customers actively looking for a plumbing service. Cost-effective: You only pay when a user clicks on your ad, guaranteeing that your marketing budget is spent on leads that show interest in your services. Measurable Results: Google provides detailed analytics for your PPC campaigns, allowing you to understand what's working and where improvements can be made. In the competitive industry of plumbing services, Google PPC can be a game-changer. It not only boosts your online presence but also brings in high-quality leads that can convert to actual service calls. With a well-structured PPC campaign, you can effectively maximize your return on investment, attract more calls, and grow your plumbing business. 3. Google Business Profile Formerly known as "Google Maps," Google Business Profile is a free tool that allows you to manage your online presence across Google, including Search and Maps. This is how it works: You start by creating or claiming your Google Business Profile. Next, you can update your profile with compelling information such as your business address, hours of operation, contact information, and photos of your plumbing services. Once your profile is live, potential customers can easily locate your plumbing services on Google Search and Maps. There is also an option to respond to customer reviews, post updates, and even allow customers to book services directly from your profile. How Does Google Business Profile Help You Get More Plumbing Calls? Increased Visibility: Google Business Profile puts your plumbing business on the map, quite literally. Potential customers in your area can easily find your services when they search on Google. Established Trust: Customer reviews on your Google Business Profile foster trust and confidence in your services. A well-maintained profile with positive reviews can greatly influence the decision-making process of potential customers. Direct Contact: Your Google Business Profile provides customers with your contact information, making it simple for them to call or book your services. Insights and Analytics: Google Business Profile offers insights into how customers are interacting with your profile, helping you understand what's working and where improvements can be made Google Business Profile is an invaluable tool for plumbing businesses. It not only enhances your visibility but also helps convert online searches into actual service calls. If you're looking to expand your reach and get more calls, optimizing your Google Business Profile should be your next step. 4. Organic SEO Organic SEO (Search Engine Optimization) is the practice of optimizing your website and content to improve its visibility in search engines. Unlike paid advertising strategies, organic SEO focuses on achieving high search engine rankings through non-paid, or "organic," methods. This involves: Keyword Research: Identifying the keywords and phrases potential customers are using when looking for plumbing services. On-Page SEO: Optimizing your website's content, title tags, URLs, and image alt text to align with these keywords. Off-Page SEO: Building high-quality backlinks from other websites to increase your site's credibility and ranking. Why Is Organic SEO Vital For Plumbing Business Owners Seeking More Plumbing Calls? Sustained Online Presence: Organic SEO helps your website rank higher in search engine results over time, providing a sustainable online presence. Unlike paid ads, the effects of SEO are long-term and continue even after you stop optimizing. Cost-Effective Marketing: While initial SEO efforts may require an investment, its long-term nature makes it more cost-effective than continually paying for ads. High-Quality Traffic: Organic SEO targets users actively searching for plumbing services, resulting in high-quality traffic and a higher likelihood of converting visitors into calls. Trust and Credibility: Websites that rank high in organic search results are often perceived as reliable and credible, which can increase the likelihood of customers choosing your service over others. Organic SEO plays a significant role in increasing your plumbing calls by improving your website's position in search engine results. With strategic keyword use, high-quality content, and continuous optimization, you can enhance your online visibility, attract more potential customers, and ultimately, receive more service calls. Retargeting on the Google Network Retargeting, also known as remarketing, is a powerful online marketing tool that allows you to stay connected with your target audience, even after they leave your website . Retargeting is a technique used to display targeted ads to users who have previously visited your website or shown interest in your plumbing services. These ads appear when they browse other websites within the Google Display Network or use Google Search. How Does Retargeting Work? Cookie-Based Technology: When a user visits your plumbing website, a small piece of code (often referred to as a cookie) is placed on their browser. This cookie informs Google to show them your retargeting ads. Ad Placement: Your retargeted ads will appear to this user as they browse different websites within the Google Network, reminding them of your plumbing services and prompting them to revisit your site. Why is Retargeting Important for More Plumbing Calls? Increased Brand Exposure: The more your potential customers see your brand, the more familiar they become with your business. This familiarity can result in them choosing your service when they need a plumber. Highly Targeted Ads: Retargeting allows you to show specific ads based on the user's behavior on your site. For instance, if they viewed a particular service, you can retarget them with ads related to that service. Improved Conversion Rates: Not all users will convert on their first visit. Retargeting keeps your brand at the forefront, increasing the likelihood of them returning to your site and converting to a service call. Cost-Effective: With retargeting, you're specifically targeting users who have shown interest in your services, making your marketing efforts more efficient and cost-effective. Retargeting on the Google Network offers a better opportunity for your plumbing business to maintain visibility and stay top of mind. This strategy is a powerful way to transform your first-time website visitors into repeat visitors and eventually into customers, thereby increasing your plumbing calls.
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