There’s really no secret to being a plumbing contractor but once you have your license you need to decide what area of plumbing you plan to specialize in. There are 3 areas that you should take a look at.
1. New construction for builders is a good way to get started for several reasons. Most of the time you can stay busy working with builders. It’s also a good way to build a client list once the home is sold. This business has certainly slowed down but jobs are still out there.
Being a plumbing contractor for builder’s means that margins will be less than residential plumbing jobs. However, there are exceptions. If you offer builders fast response time and quality work, you can often negotiate higher prices and better margins. Remember that poor response time and poor service cost builders in both reputation and money. Fast response times and high quality work save the builder money, time and increase positive word of mouth. If he’s making more money you can expect to make more money.
Working for a poor quality builder, however, won’t help you much. My advice is to research the builders in your area to choose the builders you want to work with. Just remember picking good builders is important so take your time and check them out and above all make sure they pay in a timely matter. Also make sure you spell everything out on your contract and when you have change orders make sure they are signed before the work starts.
2. Commercial work is also a great way to start as a plumbing contractor. Contract pricing is higher with commercial work and generally you have less competition because it’s a more specialized field.
Commerical business will incur some additional expenses. Overall your margins will be higher but you will have to carry additional contractor insurance and you will need to check with your workers compensation insurance to be sure you are covered for mid rise and high rise work.
To be successful in commercial work, you need to pay close attention to the details. Commercial work is like builder’s work on steroids. The stress and the tight schedules are all worth it though when you drive around town and can say you plumbed this or that building. Priceless!
3. Well last specialty area is as a service plumber. This means you are working with the public all of the time. I like to call it retail service. This is where the majority of plumbing contractors specialize.
Service plumbers work on homes or commercial buildings that all the above has built. It’s not uncommon for the builders and the commercial plumbers to send you all there service work.
Working with the retail side of the plumbing business can take a little longer, but if done right it can give you a very successful plumbing business. You are most always on time and material plus a service call.
You should be able to make a nice living and your margins will be the highest of all three.
The biggest drawback to retail service is that you now have a 24/7 business 365 days a year.
What Area Do I Want to Specialize?
The best plumbing contractor business advice I can give you is to find your niche above that fits into your talents and then be the best damn plumbing contractor you can be.
There is nothing wrong with being all three of the above plumbers. You may have the will and the skills to manage and run a very large plumbing operation. Or you may be happier working for yourself, by yourself. Of course, there is the happy middle where you have a couple of plumbers working for you and you are still able to do jobs as well. It’s always a good idea to know where you want to take the business before you start. There are often many decisions to be made early on that can affect the direction of your business growth. If you don’t plan ahead, you’ll find that your business may end up going in directions you never intended.
Being an “in demand” plumbing contractor is always about response time, communication, and courtesy with the customer.
The best plumbing contractor business advise I can give you is to find your niche above that fits into your talents and then be the best damn plumbing contractor you can be.
I hope this information is helpful for plumbing contractors, just starting their businesses. Please send me your comments and I’ll write about what you’re most interested in.
Happy Selling
Glen
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