I would like to introduce myself. I am Scott Swanson, Owner
and Operator of Bee Plumbing. I have been in the service industry for 40 years.
I started out doing sewers and drains, then became a full-fledged plumber. I have
had the incredible opportunity of running some of the largest residential
plumbing service companies, and now own my own plumbing company.
Consultants
I have seen many changes in the industry over the years,
most do NOT benefit the customer. Lately plumbers have been bombarded by calls
from “consultants.” They think they know my business better than I do and tell
me, among other things, that I am not charging enough.
As a business owner my first thought is always about you, my
customers, and how I can make it better for you.
Old School Pricing
The old school way is to look at your business over a year,
take all your expenses and break them down to what they cost you per hour.
These are your direct labor (your plumber’s), your indirect labor (your office
personnel, your delivery drivers, your shop guy) - you get it. Then all the
other stuff - like the trucks, fuel, insurance, phones, advertising,
accounting, legal licenses, education - the list goes on. Then you try to make
a fair profit so you can grow a little or replace some equipment. Fair in most
cases is about a 30% margin, if you make 15% you should be doing okay.
Hourly or Flat Rate
Most small plumbing shops are hourly with some flat rate
items with a small service call fee to cover vehicle and fuel expenses. It is
typically easy to figure things out. The plumber is paid by the hour, and they
are focused on fixing the problem at hand. It has been my experience that small
business plumbers are better trained in the repair aspect and the owners are
more in tune with the customers. The plumber is paid a good living wage and the customer is charged an affordable rate. If the owner truly cares, he prioritizes his workers and
customers. It's not just about the money. They make a fair profit without
gouging customers.
New School Pricing
New school takes in the same expenses, but the profit
margins are crazy, 50 to 100%. I don’t know about you but it’s a hard pill for
me to swallow and I also like to sleep at night. So, for this reason hang on as
I reveal the twist and turns of the plumbing service industry and what to think
about before you call your next plumber.
Flat Rate
Most larger plumbing companies are going flat rate. In my
opinion, they feel they need to be a monetarily driven business where it’s all
about the money. They feel they have to get every call done the same day that
it comes in. So they run every call like it’s an emergency call. This takes
huge amounts of manpower, thus driving their overhead through the roof. To fill
these positions they do not always get the most skilled plumbers. They also
don’t train them in fixing the problem, or the skills needed to do so. They
usually pay them a lower hourly wage and commission or an industry term spiff.
A lot of the time you feel like you’re getting a better deal from a
high-pressure salesperson than you are. That’s where a lot of these companies
concentrate on training their plumbers. They try to teach them to sell
everything they can because they won’t be coming back. Then when you ask them
to break down the bill most will not... they will say "it’s all
inclusive".
The Customer is Still King at Bee!
I want to take this opportunity to thank you for your
patronage and loyalty. I want you to know you can always count on Bee Plumbing
to provide quality work at a fair price, the Old School way!
Thank you!
-Scott Swanson
