Where to go from here? - Contractor Talk - Professional Construction and Remodeling Forum

CA PLMBR · 09-20-2008, 07:09 PM

Hello all.
I have placed all my posts so far in the plumbing forum here. This is my first time to the marketing forum. I hope that someone can help give me insight. I have 20 years in the trades. Most of this time was working for others (mostly new construction but some service and some stationary engineer experience. I have been a plumbing foreman until recently since I've gotten my C36 Plumbing contractors license in California. I have been in business for close to a year and have been doing alright just doing service. I do not have any advertisement but I am going to be listed with a 2" ad in the local phone book (1st page color). I am operating from my home. I have been getting 90 percent of my work from home warranty companies with very little walk-in business (I realize with no ad or storefront walk-in biz is non existent) and 95 percent of that business is service. I am diligently posting on Craigslist with my license info in clear view. I have no managerial experience other than as a foreman running a project. I am a bit intimidated to bid on jobs for the simple fact of the lack of experience estimating and with the current status in the construction industry quite competitive. I do not want to take my capital and lose it on just one job if I do not work the numbers right and underbid. Is this a smart decision? I feel that I am swimming in the shallow end of the pool. I am pretty much breaking even by paying my bills but not much more than I would get from working for someone else. How can I break this trend? Any advice would be greatly appreciated.

Remodel Bud · 09-20-2008, 07:59 PM

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Remodel Bud · 09-20-2008, 08:06 PM

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threaderman · 09-20-2008, 08:19 PM

Networking,target marketing and advertising.You as a plumber should know sometimes you have to throw a lot of poop on the wall to make enough stick.My business is 15 mths. young in my new location and advertising is between 5% -10% of my gross income.I moved from a much smaller city,and my business did very well there,but that was not were I wanted to buy a home ,so here I am starting from scratch again as far as contacts.I don't mind spending 10G to generate 125G or more[for now],that's how it will be for me until my reputation and following in this area can stand on it's own.Eventually you will be able to wean yourself from the big money ads.Many here will say big book ads are a waste of money ,but they work for me,as does craigs list.
I try to maintain a decent web-site and steer people there in my advertising and business cards.And I am always tweaking the web-site.Compared to others here mine is not a great functioning site as far as the search engines go but there are only so many hours in the day.
I'm sure others here will give you very different advice.It's ok to use bits and pieces to fit your needs.If you search the archives here you can find some great info. on almost any subject concerning the business end of running a company.

Mike Finley · 09-20-2008, 08:56 PM

crawl before you walk
walk before you run

never be afraid to say, I'm sorry I'm not comfortable taking on this job right now, never be afraid to turn away jobs, it's tough when all you can think about is the bigger profit off a big job, but it sounds like you're smart enough to have some good fear of what might happen if you get over your head.

bid on what you feel you can do and get it done, then keep stretching a little bit at a time. This time next year you'll be doing those bigger jobs.

Remodel Bud · 09-20-2008, 09:07 PM

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Carport King · 09-21-2008, 05:03 AM

Mr plumber you say you do service, then be the best damm service plumber out there. Forget about new construction right now because the market is not there right now.

Get out your city map and draw a 5 or ten mile circle around where you live. Blanket that area with post card marketing with a call to action.

I know plumbers in our town that stay super busy and never leave our town. You say you are breaking even right now. Fantastic because most fell in the deep end of your pool.

You need to be like the little train going up the hill. I THINK I CAN- I THINK I CAN. So keep taking those baby steps forward and yes sometimes we fall but keep playing and thinking about those trains.

Your business is know different then mine it's just I like the deep end of the pool the best.

rbsremodeling · 09-21-2008, 08:07 AM

Quote:

Originally Posted by CA PLMBR

Hello all.
I have placed all my posts so far in the plumbing forum here. This is my first time to the marketing forum. I hope that someone can help give me insight. I have 20 years in the trades. Most of this time was working for others (mostly new construction but some service and some stationary engineer experience. I have been a plumbing foreman until recently since I've gotten my C36 Plumbing contractors license in California. I have been in business for close to a year and have been doing alright just doing service. I do not have any advertisement but I am going to be listed with a 2" ad in the local phone book (1st page color). I am operating from my home. I have been getting 90 percent of my work from home warranty companies with very little walk-in business (I realize with no ad or storefront walk-in biz is non existent) and 95 percent of that business is service. I am diligently posting on Craigslist with my license info in clear view. I have no managerial experience other than as a foreman running a project. I am a bit intimidated to bid on jobs for the simple fact of the lack of experience estimating and with the current status in the construction industry quite competitive. I do not want to take my capital and lose it on just one job if I do not work the numbers right and underbid. Is this a smart decision? I feel that I am swimming in the shallow end of the pool. I am pretty much breaking even by paying my bills but not much more than I would get from working for someone else. How can I break this trend? Any advice would be greatly appreciated.

Three Ideas for you

1 buy Michael Stone Mark up and profit book learn what you need to charge.

2. Start raising your price to get to the new Price you need to be at

3. Service work is a gold mine for plumbers if your good at it. Like CK said leave the new construction jobs alone.

Maybe some remodeling plumbing for a good contractor and do small jobs like bathrooms and kitchens etc where your money turns over fast. Get a deposit and second draw from them that covers all you time, material and and small profit by the second check, your final check on the trim work/ final inspection should be 20% of the job cost

Your draws should be 40% start of rough, 40% after rough inspection, 20% completion final inspection

CA PLMBR · 09-22-2008, 07:33 PM

I thank everyone for their positive input. I think everyone has their weaknesses and strengths. My strength is plumbing and sales. I put my heart and soul into every call. I do some remodeling jobs when they come along and would like to get more. Does the phone-book bring in business? I have an ad coming out and it's costing me $140 a month. I feel for a 2" ad this is decent and will bring in walk in biz. I appreciate the responses they are all positive. I remember I posted on the RIDGID forum when I was planning on getting my license and was asking about reference materials. I received some responses like "If you need reference materials you shouldn't be attempting to get licensed". I studied and passed both my law and trade tests with flying colors with an hour and a half to spare. I believe because I was well versed. I find this forum a lot more positive and helpful.

rbsremodeling · 09-22-2008, 07:40 PM

Quote:

Originally Posted by CA PLMBR

I thank everyone for their positive input. I think everyone has their weaknesses and strengths. My strength is plumbing and sales. I put my heart and soul into every call. I do some remodeling jobs when they come along and would like to get more. Does the phone-book bring in business? I have an ad coming out and it's costing me $140 a month. I feel for a 2" ad this is decent and will bring in walk in biz. I appreciate the responses they are all positive. I remember I posted on the RIDGID forum when I was planning on getting my license and was asking about reference materials. I received some responses like "If you need reference materials you shouldn't be attempting to get licensed". I studied and passed both my law and trade tests with flying colors with an hour and a half to spare. I believe because I was well versed. I find this forum a lot more positive and helpful.

Blah blah yeah yeah.

We except cash or snicker bars for our suggestions around here buddy what's it going to be. We don't give out willy nilly advice for free

I think you have good work ethics from your post. Most of us in this game struggle on the marketing and business side.

Focus on those to areas real heavy. Take classes join good organizations and keep reading this site for good tips and advice. My pet peeve is technology I think software can reduce or work load 10-20% easily for the average small business owner.

**Double-A** · 09-22-2008, 08:04 PM

Look at Ellen Rohr's stuff as well. Bare Bonz Biz...

She has several books, many available used from Amazon. Go look and start off with the basic ones like "Where Did All The Money Go?"

SLSTech · 09-22-2008, 09:21 PM

RBS - your undercharging, there giving away pies & pastries in another post... Wait a sec, Washington DC, the Snickers bar might cost more than the pie

CA - as for the Yellow Book, it generally will not bring in walk in business. One thing to look into is how many people are currently listed, why is your ad different - why would they call you? Depending on the demographics the web may be better, or specialized magazines, newspaper, etc...

onenia · 09-23-2008, 09:41 PM

Quote:

Originally Posted by SLSTech

RBS - your undercharging, there giving away pies & pastries in another post... Wait a sec, Washington DC, the Snickers bar might cost more than the pie

I'll take some chocolate cake please!

I didn't hear you mention a website. That would be my recommendation. The generation now is all about online and shopping at their leisure. I receive request for estimates from my website at 12am...3am...you name it.