Thinking about starting plumbing service

[HReedKnows]

I decided to start a plumbing/backflow service any thoughts, advice or comments? All paper work is in order need one last RPM class to start. My biggest fear is starting out, I have always done commercial (mostly hospitals) and currently work maintenance in an industrial setting. I've trolled this forum before trying to pick up some tips from people that have been in the field, I have been trained by some great plumbers and have confidence that I will be able to meet any challenge in the field, however I have never worked full residential. Having said that I have the inevitable fear that comes along with starting a new business or being self employed, which is what I would like to be. My primary question is how was it when some of you started out? I have learned from experience that most home owners feel more comfortable with big name companies, how do I overcome this? Has any one started working for themselves while maintaining a day job? My job as I said is maintenance and have a set schedule, I hope to cater to people that don't want to take off work to meet the plumber, of course it's gonna be a give and take because I won't be able to charge for after hours since this is when I will do most of my work. Thank you in advance!

 

[phishfood]

I did exactly that, as in I started my company while still working a full time 40 hour+ job. I did both for 3 years, until I got too busy to do either job properly. Then I went full time on my own.

Before I started my business, most of my experience was with new construction apartments and houses. A little bit of remodel and commercial in there, with a tiny little bit of service work.

For me, it has been a big transition to doing mostly residential service. My plumbing knowledge has been a big help, for sure, but the learning curve has been pretty steep.

One thing I can definitely tell you is that it takes a lot more money to operate a business than you would imagine. Coming up with a realistic pricing plan is every bit as important as being able to change a shower valve or cable a drain. One potential downfall of starting out while still working for someone else is that it can mask the problems caused by unrealistic pricing, since you aren't depending on your business for your income.

 

[johnjh2o]

When doing pricing along with your salary and overhead make sure you have also included a profit for the business. Without that the business can't grow.

 

[HReedKnows]

Thanks, both very good points,

@phishfood thanks for bringing the pricing issue to my attention, it sounds like you've just helped me avoid a major pitfall that seems to be an issue when first starting out. I have been totally focused on starting that I had neglected the future and that is a no no.

@johnjh2o it's also a good point what you brought up because it is going to be crucial that I put away enough money to be able to grow in the future.

Another question I have regarding pricing is hourly vs flat rate?

Also, how hard is it to get the phone ringing?

And the last one what to say to the nay-sayers that label your cause doomed from the beginning?

 

[frodo]

word of mouth, and being seen.

i started out doing work for 1 contractor, he built 15 houses a year. so to make ends meet i started doing service work.

seems i was getting a lot of calls from the neighbor hoods we were building in for service work.

it pays to spend a little extra on a professional paint job on your truck as opposed to a magnetic sign or bubba's spray can

appearance counts.



View attachment 9984

 

[frodo]

this type of pipe rack, will save you money on insurance, and stop the BS phone calls about busted windshields

NOTE, the mesh in the front, keeps the pipe from slidding forward and causing damage
aa buddy, has the mesh in the back also, hinged door, stops crack heads from stealing copper

i have thought about adding a piece of the wire mesh above the cab, to haul an extra bathtub or whatever if needed

 

[Matt30]

it pays to spend a little extra on a professional paint job on your truck as opposed to a magnetic sign or bubba's spray can

I do not own my own business, but I can chime in on his point.

The company I work for is reletivly small compared to most here. We have 7 guys, and 5 vans on the road. One of the most common things new customers tell me (I'm the service guy, I meet a lot of people) is they took our number off a van they saw because it caught their eye. Most vans on the road are plain white with company logos, but all of ours are 2 tone green and really stand out coming down the road. People don't even need to see the name on the van to know its one of us. Even when I meet new people who ask who I work for and I tell them, they say "oh the ones with the green vans!"

 

[frodo]

I do not own my own business, but I can chime in on his point.

The company I work for is reletivly small compared to most here. We have 7 guys, and 5 vans on the road. One of the most common things new customers tell me (I'm the service guy, I meet a lot of people) is they took our number off a van they saw because it caught their eye. Most vans on the road are plain white with company logos, but all of ours are 2 tone green and really stand out coming down the road. People don't even need to see the name on the van to know its one of us. Even when I meet new people who ask who I work for and I tell them, they say "oh the ones with the green vans!"

exactly,

best paint job for a plumbing truck I have seen was a green van
with a huge plumber on the side.

prettiest truck
as a
pipe rack, and extra tool bins on each side
painted black with red lettering

 

[HReedKnows]

That's another good point, it's basically free advertisement! I'm sure it will also help me standout.

I decided to present my self in a matter that shows professionalism because I think one of the biggest challenges that I'm going to face is having people call me instead of the big corporate companies around town.

By professionalism I mean having good business cards and labeled vehicle to help void timers feel more comfortable approaching me. I've seen time and time again that no matter how good the plumber is, some people have reservations of who they let in to their homes and I don't blame them.

 

[frodo]

LOL,,sometimes the best advertising you can get are the jobs you did not do.

A lady, called me to replace her leaking water heater. she had water on the floor and was upset.

I found the cold water nipple was leaking, I replaced the nipple, it had rust,

dried up the floor, actually mopped the floor.

told her she did not need a $1000.00 WH, a $150.00 would take care of it

i missed out on a WH switch out but picked up a minimum of 6 more jobs. One was a copper repipe

Some plumbers would have replaced the Wh anyway, but she would not have referred them.




Note, i have found that if you wipe up the water stain in the bottom of the cabinet, you will not get a call back for a leak that does not exist
Some of them old Girls, see the stain and grab the phone. clean the cabinet, only takes a minute, the fantastic is usually in your way anyhow

 

[phishfood]

?#1Another question I have regarding pricing is hourly vs flat rate?

?#2Also, how hard is it to get the phone ringing?

?#3And the last one what to say to the nay-sayers that label your cause doomed from the beginning?

?#1
That is actually an interesting question, that can lead to a lot of good and thought provoking discussion.

Most of the guys that I have talked to who are flat rate actually have an hourly rate. They just apply the hourly rate that they want to make BEFORE they do the job. One of the biggest benefits of this is that you don't have to justify the hourly rate to the customer.

This is a bit difficult to do if you don't have a good basis in the service industry that will allow you to accurately predict an "average" time that it will take to perform a specific task. I chose to start out with a minimum for the first half hour, and then an hourly rate after that. As I have gotten more comfortable with specific tasks, I find that there are some that it makes more sense to charge a flat rate for.

What I have done in the past on jobs that I don't feel like I can predict how long it will take, and the customer wants a hard number before I start. I explain to them the variables involved, and how it would affect the final price. Then I give them a flat rate based upon the worst case scenario, and allow them to choose whether to accept the flat rate price, or have me proceed on a time and material basis.

?#2
That can be really hard. If you have a lot of up front money to invest in a search optimized website, yellow pages listings, lead services, etc, you could stay busier than you would ever want to be almost from day one.


I myself got a lot of my original customers from free Craigslist ads. Most of them I still do work for today. I also dealt with a lot of people who wanted something for nothing.

Probably the best source of customers will be from contacts you already have. Does everyone where you currently work know that you are the "go to" guy when something needs to be fixed right, right now? If so, all it takes is those same people knowing that you are doing service work to get them and their neighbors and friends calling you. I get calls brought to me by old contacts in the construction industry at least weekly.

Then there are lead generation services such as Angie's List, HomeAdvisor, Yelp, Yodel, etc. From what I know, these generally do a good job of making the phone ring, but they also tend to cost, and there is no guarantee of converting the call into a sold job. I myself am set up with HomeAdvisor, but I have had the leads shut off for the last several months, since I am backed up as it is. I still get calls from people who have found me there, as all of my reviews are very positive. DO EXCEPTIONAL WORK, COMMUNICATE WITH YOUR CUSTOMERS REALLY WELL, BE LIKABLE, AND ALWAYS ASK IF THERE IS ANYTHING YOU CAN DO TO MAKE THEIR EXPERIENCE BETTER. Reviews and customer satisfaction are of utmost importance, whether it is from paid advertising or referrals.

?#3
Pay attention to them up until the point that it makes you think of things that you might not have thought of that might impede your success.

After that, IGNORE THEM.

You will never get where ever it is you want to be, if you stay where you are now. I have faced many setbacks, all of them accurately predicted by others before I got started. So far, I have managed to overcome, and the path forward looks brighter than ever.

The most important attribute you will need to succeed is an unwillingness to admit defeat. After that, being willing to work harder than you ever thought you could. And third, you have to be willing to change your methods and procedures when what you are doing isn't working.

 

[havasu]

I'm not a plumber but have a friend who is an excellent plumber. I refer him all the time with the understanding they he treats my friends extremely well, which he does. I refer him at least once a week, and he is always calling me back with a simple thank you.

If you do good for others and treat customers with respect, this will get noticed, and your word of mouth business will take off.

 

[HReedKnows]

Wow this is all very good advice, some of y'all might have a future in life coaching lol, it's refreshing to get positive advice and encouragement, now a days it's hard to find that, about half of the people I talked to where very negative, but I'll just put that in my motivation arsenal.

 

[Chris]

Get used to negativity and comments. They are usually from those that would never even think of taking that jump to self employment. I went on my own in 2008 when the economy took a dump. The guy I was working for went out of business. I was at home on unemployment, I had no place to go but up. Luckily I saw it coming and got licensed and started hoarding tools just before. I took my tax return and started working. It was rough and still is at times but it was also the best decision I ever made in life. Those same people that are making comments now will be making comments in a few years when you are doing well too except the comments will then be about how rich you are while they try and mooch something off of you. I get told I'm rich all the time because when you are a business owner you are forced to save and be frugal which in turn somehow looks like wealth, mostly because you will be buying new tools and trucks for your company.

The advice I can give is

Save every extra penny you can
Sink as much as possible back into the company (it will pay off quick)
Be professional and clean
Be Honest
Like others have said a nicely painted truck/van will be some great advertising.
Think Big, Be big