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Avoid Leaving Money on The Table: How Plumbers Can Ensure They Maximize Profitability on Every Job

Learn the warning signs that you might be limiting your sales, lowering your average ticket, and leaving money on the table.

For plumbing contractors, one of the easiest and most cost-effective ways to bring in more money is to sell more services to your existing customers. Yet, every day, plumbing contractors fail to do just that. If you’re unsure whether you’re one of them, consider these four warning signs that you’re leaving money on the table:

1. You’re Not Transparent About Everything You Offer

Your plumbing company likely offers a wide array of products and services that homeowners are interested in buying, and it’s important for your profitability that you make sure they’re aware of that. Obviously, you can’t have an entire showroom of your products in the back of your truck, but you can put together a detailed catalog of your offerings to provide the homeowner with during their appointment. Include all the plumbing bells and whistles you can think of; faucets, sinks, toilets, showers, and bathtubs. And if you really want to maximize your profits, skip the more cost-effective products, and instead highlight your more high-end offerings. Include photos straight from the manufacturer(s) with examples of different finishes, and price them high enough so that you can guarantee a profit. In addition to your existing customers, it’s also crucial that you make sure potential customers are also aware of what you offer. Mirror what’s within your catalog on your website, and even consider sending your leads emails that feature the products you offer. Ultimately, when homeowners are aware they have options to choose from, they’ll be more likely to buy from your company.

2. You Don’t Embrace Good, Better, Best Options

Offering good, better, best estimate options is a straightforward concept: you present product or service options to homeowners at gradually increased prices, with each option adding a new value or feature to it to account for the increase in price. The goal of good, better, best options? To enable the homeowner to spend more and increase your average ticket. Now, some plumbing contractors make the mistake of assuming people want the cheapest options. While this is the case for some consumers, others want the best bang for their buck, which sometimes means spending more. And when presenting good, better, best options, you’ll be more successful if you’re clear about the value between the options – something Profit Rhino’s mobile sales presentation tool can help with.

3. You Aren’t Thinking About This Key Demographic

As consumers age, several will try to resist moving to assisted living communities and instead modify their homes to better suit their needs – one of which being to improve bath safety. To take advantage of this opportunity, your plumbing business should consider adding items such as grab bars, wheelchair compatible sinks, high toilets, walk-in tubs, and shower modifications to your list of product offerings. Then, to market these additions, display these products on your website, social media platforms, and share them via email to your customers. It’s even worth your time to create a catalog of these products and connect with home health care providers in your community to see if they would distribute them to their clients.

4. You Do Not Offer Financing

Offering your customers financing options gives them the flexibility to pay for their purchases over time and increases their purchasing power so that they can afford more of your services. Plus, by offering financing options, you can more easily steer the conversation away from budget constraints and instead focus on the value the homeowner is getting from their purchase, which enables you sell more on every job and increase profitability.

With a little transparency, good, better, best options, financing plans and a broader product offering, your plumbing business can sell more to every homeowner and maximize your profitability. Another key way to maximize profitability is to offer flat rate pricing at your business, A.K.A. the upfront pricing that over 92% of homeowners prefer.

Profit Rhino, a provider of the leading flat rate price books and pricing technology, was built to help home services contractors use flat rate pricing successfully. To learn more about Profit Rhino, watch a demo to see their products in action!

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