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Ford Transit - Making The Big Switch

 
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Old 08-21-2013, 06:41 AM   #661
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Re: Ford Transit - Making The Big Switch


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Boy, that's somewhat of a complex question without getting in to a really long post.

Ok. The business I'm in, plumbing service, is a very difficult type of business to make money in. That's why we have no choice but to charge say $125 an hour.

Let's say I get a service call. A couple things about this dynamic needs to be said....

First off, it's unscheduled. That means I need to somehow find a way to think fast, be ready, act quick and be efficient. Because of this, many in this type of business fail. They go broke.

The money in this business is found in the efficiency of scheduling and the efficiency of inventory. Let's back up and use remodeling as an example first.

In my area a plumber doing remodeling charges in the neighborhood of about $70 an.hour. A plumber who charges $70 an hour on a remodel can easily make.more money than a service plumber who charges $125 an hour. Why is that?

Well, as most know, they spend all day at a project or say 8 hours. So this guy gets 8 hours @ $70 an hour on a job that was bid. Assuming he's fast and bid correctly his profit also lies in efficiency but it's a different type of efficiency and his hidden profit potential is found in bidding a 30 hour job and completing in say 24 hours. I'm sure you totally understand all that etc.

Now think about pure service with no remodeling in the mix. That is my business

It's currently 5:58 am. As of right now I have zero work, I don't know what I'll be doing today. I just know that I need to be ready for whatever call I get.

There's a high probability my first call will come in at about 7:00 maybe 7:30. It could be 8:00 or 9:00. By the time MY first call comes in the rest of the construction world is already working.

So I get this call at say 7:30. Every call takes a minimum of 10 minutes. Now it's 7:40. Then I drive to the place, let's say that's about 20 minutes. Now it's 8:00.....assuming I'm ready and fast as hell.

Ok. Now let's say the job takes me 30 minutes which is about average for me. 10 minutes of conversation on the job and 30 minutes of work is 40 minutes. It's now 8:40.

To keep things simple let's say it's 9:00 and I have an invoice for $200.

Now what? Where do I go from here? Another job? Can I time it that perfectly? You see scheduling is a MAJOR factor in profitability for me. Service plumbers who do well in this business are master schedulers and highly efficient. They back up jobs tightly with no error. Why do you think plumbers are always late?????

Anyhow, that explains why it's much much easier to make more money @ $70 remodeling than @ $125 doing service. Most service plumbers fail. They either take on remodeling or go broke.

So let's talk about that Ford Transit. It has changed everything about my business.

Let's first pick a goal. Let's say I want to increase my sales revenue by $50k a year. Well, one way to do that is to add 1 extra service job per day @ $200 dollars.

In order to do that what needs to happen? I need more time right?

The Transit gives me more time.

1.) It's much faster to drive.
2.) Faster to park.
3.) Lower pipe rack means faster to remove what's on the rack.
4.) I no longer walk inside my cube van. Everything is within arms reach. That saves me at least 1 hour per day.
5.) Inventory is less. Better managed. This saved me at least 1 hour per day. By using small bins I can be more efficient etc.

So all these things just give me more time. It allows flexibility within my schedule......that is.where the profit is.

So let's use a typical plumber as an example. Say a guy with a cube van who is unorganized and throws everything in a pile. He has to dig for parts. He crawls in his van. He loses time. How can he schedule with any degree of efficiency?

I've had electricians, plumbers, builders, Roofers and pretty much every trade approach me and ask to see inside my van. Many look and walk away saying "not enough room". Why is that?

My good friend, childhood friend, owns an electrical shop. He has 7 employees. He has spent time with me and is now buying 3 Transits. He finally understands what I'm talking about.

This is why I no longer spend much time in the marketing section of this forum like I use to. There's serious money to he made here. And I've just begun.
This is the exact reason why the service side of my business is my least profitable part of my business.

I find in any given service day I'm billing out 4 hours. My hourly rate is $75, I charge $75 to show up and be there half an hour.

The thing I do like about service is it gives me the opportunity to shoot the breeze with clients, talk about future expansions and sell them more equipment...so although I'm not stuffing my pockets doing service calls they pay off later.
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Old 08-21-2013, 07:00 AM   #662
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Re: Ford Transit - Making The Big Switch


Inner 10

That's exactly right. I've had carpenters talk smack about how they can only charge say $50? An hour etc etc. But the simple truth is a highly efficient carpenter can easily make more profit than me......assuming they know how to play the game, are efficient, skilled and run a tight ship. They can make a ton!

What many don't grasp is how many gaps in our schedule we could have.

I always know if the day will be super profitable when people call me the day before and I can schedule it. Today will be less than desirable.....we'll see. Lol
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Old 08-23-2013, 08:12 AM   #663
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Re: Ford Transit - Making The Big Switch


Are you ever gonna finish this damn project? I had to re-join just so I could keep an eye on it.
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Old 08-23-2013, 10:41 AM   #664
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Re: Ford Transit - Making The Big Switch


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Are you ever gonna finish this damn project? I had to re-join just so I could keep an eye on it.
Where you been JF?
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Old 08-23-2013, 10:59 AM   #665
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Re: Ford Transit - Making The Big Switch


Jay, give me a call this evening when you have a chance.
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Old 08-23-2013, 11:19 AM   #666
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Re: Ford Transit - Making The Big Switch


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Where you been JF?
I've been on a bit of a "forced vacation" for getting a bit mouthy 10-12 months back. We'll see how long I last.
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Old 08-23-2013, 11:31 AM   #667
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Re: Ford Transit - Making The Big Switch


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I've been on a bit of a "forced vacation" for getting a bit mouthy 10-12 months back. We'll see how long I last.
LoL yeah I can relate...some people don't share our dark sense of humor.
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Old 08-23-2013, 11:55 AM   #668
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Re: Ford Transit - Making The Big Switch


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I've been on a bit of a "forced vacation" for getting a bit mouthy 10-12 months back. We'll see how long I last.
Good to see you back. I had one of those for the last 3 months because I'm liberal or something; honestly don't know why - "bad Jay" never gave me a reason. Anyway, see you around.
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Old 08-23-2013, 12:22 PM   #669
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Re: Ford Transit - Making The Big Switch


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Good to see you back. I had one of those for the last 3 months because I'm liberal or something; honestly don't know why - "bad Jay" never gave me a reason. Anyway, see you around.
There should be a reason after you get banned mine was "unable to exert self control" or something like that.
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Old 08-23-2013, 12:38 PM   #670
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Re: Ford Transit - Making The Big Switch


That's funny. I thought I read about 90% of the threads here, and have yet to see much that should lead to a ban. Where am I for all the excitement? Welcome back all!
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Old 08-23-2013, 12:45 PM   #671
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Re: Ford Transit - Making The Big Switch


I thought you guys were talking about your wives. Lol
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Old 08-23-2013, 01:57 PM   #672
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Re: Ford Transit - Making The Big Switch


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There should be a reason after you get banned mine was "unable to exert self control" or something like that.
mine was "warned, and warned again." Untrue, but that was the "reason."
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Old 08-23-2013, 02:01 PM   #673
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Re: Ford Transit - Making The Big Switch


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mine was "warned, and warned again." Untrue, but that was the "reason."
Serves ya right ya commie.
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Old 09-02-2013, 12:10 AM   #674
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Re: Ford Transit - Making The Big Switch


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Inner 10


What many don't grasp is how many gaps in our schedule we could have.

I always know if the day will be super profitable when people call me the day before and I can schedule it. Today will be less than desirable.....we'll see. Lol
I wonder if you could increase profitability by offering a discount to those who pre-schedule their repairs.
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Old 09-05-2013, 10:35 PM   #675
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Re: Ford Transit - Making The Big Switch


Anymore progress pictures of your baby .
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Old 09-05-2013, 10:42 PM   #676
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Re: Ford Transit - Making The Big Switch


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Anymore progress pictures of your baby .
I screwed up my second rack, a really stupid and foolish measurement mistake. I had to cut it all up and start over. I'm maybe 70% done. Working on a marketing theory I have right now, I wish I could clone myself. There's only so many hours in a day.

Anyhow, I should have some photos next week I suspect.
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Old 09-05-2013, 10:49 PM   #677
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Re: Ford Transit - Making The Big Switch


Spending all the time to design, create, and then build something only to realize you screwed up a measurement is such a special sort of frustration isn't it?!

Hope the rest goes smoothly.
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Old 09-05-2013, 11:14 PM   #678
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Re: Ford Transit - Making The Big Switch


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Spending all the time to design, create, and then build something only to realize you screwed up a measurement is such a special sort of frustration isn't it?!

Hope the rest goes smoothly.
Ha! Yeah you got that right! It was really depressing because it was such a simple and stupid mistake. I had to walk away and take a break. I'm working on a series of marketing videos for (CT) based on a presentation I did last year. It's nice to just do something different and go back with a fresh perspective.
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Old 09-06-2013, 08:48 AM   #679
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Nice. Look forward to seeing them.
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Old 09-14-2013, 08:48 PM   #680
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Re: Ford Transit - Making The Big Switch


update on how the van is working? Any shortcomings?

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