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Any tradesmen in here?

Soundmaxx

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Hi there,

It's been a year and a half since I joined the forum but I haven't come accross any thread about construction.

I'm a plumber myself and my plan is to turn my existing customers into annual maintenance contract, outsource it, etc.
I have already asked a couple and they are more than happy to sign up.
That's the only fastlane model I can see in this trade.

If is there any tradesman in here that have done something similar or have any kind of fastlane idea feel free to share!

All the best
Chris
 
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Strategery

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With your experience doing the job, can you see anything specific to the trade that could use improvement? I guess in other words, what recurring problems do you face in your work? Are there any problems that your customers have that you could sell a DIY solution to? Just spitballing.
 

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@Soundmaxx - Good thinking on the recurring service contracts. Could you also do different levels with that? Such as bronze, silver, gold levels?

Also, you're thinking Fastlane - What is your overall goal? Do you want more free time, additional income, both? Is your drive to help people using your skills as a plumber? Or is your goal to make money being a plumber?

Or, maybe the endgame is to not be doing plumbing at all and you want to move into something else at some point using the plumbing business as the catalyst to do that.
 

Soundmaxx

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With your experience doing the job, can you see anything specific to the trade that could use improvement? I guess in other words, what recurring problems do you face in your work? Are there any problems that your customers have that you could sell a DIY solution to? Just
With your experience doing the job, can you see anything specific to the trade that could use improvement? I guess in other words, what recurring problems do you face in your work? Are there any problems that your customers have that you could sell a DIY solution to? Just spitballing.
Saying that my plan down the line is to do upsells like water filtration, emergency main water cutout and more.

In domestic plumbing I don't see any big issues other than manage to get a plumber when you need him. I will solve this having contracts in place where the customer will receive 24-48hours service.

In commercial plumbing the biggest issue is the delivery time of the parts and luck of organising the job.
 
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Hi

Richard Harpin was a plumber for Staffordshire Water and did a Venture with them that he would manage the maintenance of all their customers.

They are now all over the UK and Spain and US now via National Grid into the US electricity market. Not sure why the National Grid are in the US, maybe their tech is better.

The company did over £1 billion in Revenue last year. £110 million Net Profit

It is called Homeserve.

Maybe you could hook up with small repair companies and take their plumbers, electricians etc off their books onto yours in small scale way.

About the parts bit you just wrote. The motor trade has these companies that drive parts to mechanics and garages. Like these guys who have been around 100 years.


I don't know if there is a plumbing equivalent from what you have just written but if not is it feasible for you?

Dan
 

Soundmaxx

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@Soundmaxx - Good thinking on the recurring service contracts. Could you also do different levels with that? Such as bronze, silver, gold levels?

Also, you're thinking Fastlane - What is your overall goal? Do you want more free time, additional income, both? Is your drive to help people using your skills as a plumber? Or is your goal to make money being a plumber?

Or, maybe the endgame is to not be doing plumbing at all and you want to move into something else at some point using the plumbing business as the catalyst to do that.
Thanks for your reply!

Yeah, I will put different levels in place for sure! I've already worked it out.

My end goal is to create a team around it and get my time off the business.

I've been in the industry 17 years (mostly working for others) and this is the reason I want to stick with it. Loads of experience as a technician but not as a manager or CEO.
 

Soundmaxx

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Hi

Richard Harpin was a plumber for Staffordshire Water and did a Venture with them that he would manage the maintenance of all their customers.

They are now all over the UK and Spain and US now via National Grid into the US electricity market. Not sure why the National Grid are in the US, maybe their tech is better.

The company did over £1 billion in Revenue last year. £110 million Net Profit

It is called Homeserve.

Maybe you could hook up with small repair companies and take their plumbers, electricians etc off their books onto yours in small scale way.

About the parts bit you just wrote. The motor trade has these companies that drive parts to mechanics and garages. Like these guys who have been around 100 years.


I don't know if there is a plumbing equivalent from what you have just written but if not is it feasible for you?

Dan
[/QUOTE]
Hi,

I know homeserve, I used them once, I'm a tenant so I not allowed to touch anything!

The concept in my mind it's similar to be honest with you, but different enough so I can get in the market.

Yes the parts are getting dropped off on site but the problem is the suppliers running out of stock all the time!
An amazon warehouse like whould solve the problem .

Thanks for your input
 
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Kak

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I like your service plan... But why not take it a step further? Why not make it nationwide and have partner plumbers in all major cities?

You don't have to be the one preforming the work. Your company doesn't have to even directly do it.

Don't box yourself in that you're a tradesman. You can use your experience in this space to be the CEO of a business that operates in this industry.

@million$$$smile has a great backstory where he started in a trade and built a business based on his experiences. It is a hell of a business too.
 

Jon L

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I have a question that I've wondered about for a while now. Why is there no nationwide plumbing service here in the US? There are plenty of regional companies. One of them, Mike Diamond Plumbing ("The Smell-Good Plumber") in Los Angeles has an abysmal 2 star rating on yelp. Other larger companies get similar reviews.

I usually do my own plumbing, but when I've needed extra expertise (installing a gas water heater that also powered the central air heat, for example), I always ask around and usually end up with someone that owns their own company, has been doing it for years, and maybe has an assistant or two to help him.

Is this an industry where its possible to consolidate?

Its similar to car repair, I think. I'd never take my car to a large company to have it fixed. I'd much rather find an honest, skilled mechanic to work on it. They usually charge less and are better at what they do.
 
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Soundmaxx

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No way to capitalize on that?
Well, the problem with the suppliers is that they are running out of stock all the time, I can't remember when was last time we manage to get all the parts on the first run! There is always something "to follow" on the delivery note.

If there was a big warehouse on every big city (London, Liverpool, Manchester, Birmingham, etc) which could stock the most common plumbing parts all the time and could deliver the same day either to the suppliers or direct on site using self employed drivers (like uber) that would be a ton of value added!

I might be a plumber but I haven't got the thousands of pounds needed to build such an enterprise :smile2: ...yet!

Thanks for your input
 
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Soundmaxx

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I like your service plan... But why not take it a step further? Why not make it nationwide and have partner plumbers in all major cities?

You don't have to be the one preforming the work. Your company doesn't have to even directly do it.

Don't box yourself in that you're a tradesman. You can use your experience in this space to be the CEO of a business that operates in this industry.

@million$$$smile has a great backstory where he started in a trade and built a business based on his experiences. It is a hell of a business too.
I like your service plan... But why not take it a step further? Why not make it nationwide and have partner plumbers in all major cities?

You don't have to be the one preforming the work. Your company doesn't have to even directly do it.

Don't box yourself in that you're a tradesman. You can use your experience in this space to be the CEO of a business that operates in this industry.

@million$$$smile has a great backstory where he started in a trade and built a business based on his experiences. It is a hell of a business too.
Hehe... please don't reveal my plans ;). That's what I've got in mind!

I don't want to start up a business just to create more work for myself, that's for sure!

I'll check out "million$$$smile" posts for sure!

Thanks for your input!
 

Kak

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Hehe... please don't reveal my plans ;). That's what I've got in mind!

I don't want to start up a business just to create more work for myself, that's for sure!

I'll check out "million$$$smile" posts for sure!

Thanks for your input!

I like your odds better than any of us non-plumbers.

Best of luck brother! Keep us posted!
 
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Soundmaxx

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I have a question that I've wondered about for a while now. Why is there no nationwide plumbing service here in the US? There are plenty of regional companies. One of them, Mike Diamond Plumbing ("The Smell-Good Plumber") in Los Angeles has an abysmal 2 star rating on yelp. Other larger companies get similar reviews.

I usually do my own plumbing, but when I've needed extra expertise (installing a gas water heater that also powered the central air heat, for example), I always ask around and usually end up with someone that owns their own company, has been doing it for years, and maybe has an assistant or two to help him.

Is this an industry where its possible to consolidate?

Its similar to car repair, I think. I'd never take my car to a large company to have it fixed. I'd much rather find an honest, skilled mechanic to work on it. They usually charge less and are better at what they do.
Hmm.. should I move in the states?

It's hard to believe there is no nationwide company there! The market is massive! There must be a reason. Here in the UK there are quite a few.

Ratings? When you pay 50/ 100 quid call out for the 1st hour it's hard to give a 5 star review. People think we don't add enough value but hang on a minute... Can you live in your house without water or heating? Is there a need? Absolutely!

Here is an example:

Whould you spend 300-400£ to buy a gadget that allows you to control your heating from your 1000£ iphoneX away from home? Oh yeah!
But when the plumber charges you 100£ to fit it and get it done in 20min because he's been doing this all his life, you've just been robbed! Give him 2-3 stars and let others know! (I'm talking about the majority of people don't take this personal, I don't even know you :smile2:).

I never take my car to a large company as the value of the car I've got now is less than 2000£ if that, but what if i was a "high class" wealthy person own a 60.000£ car? I would pay them extra to collect it from my house if i could as I will earn more staying focused on other tasks rather than wasting my time driving to their place and asking questions all the time!

I never had any problem/negotiation working with wealthy people, restaurants, etc. They are my future target customers. They completely understand the value I add and just want the job done!

Chris
 

Bearcorp

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Former Plumber here, worked in London for 12 months a few years ago as well! Good luck @Soundmaxx, I wonder if you could work on say a 12 month house service, changing tap washers and cistern washers or something like that, sell the customers on the benefits of not having dripping taps, cost of dripping taps, waste of water etc... Would require a bit of follow up calling and likely people might not be bothered especially if their taps aren't dripping yet..

What about the hot water boilers that heat the radiators, do they ever require the system to be flushed, or the control taps to be changed? Just thinking (typing) out aloud here..

The last company I worked for here in Australia manufactured free standing water chillers, we would ring the customers and try and get them on a 12 month service rota, was changing a filter and a washer basically, 10 minutes work if the unit was working fine already, an easy earner.
 

Jon L

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Hmm.. should I move in the states?

It's hard to believe there is no nationwide company there! The market is massive! There must be a reason. Here in the UK there are quite a few.

Ratings? When you pay 50/ 100 quid call out for the 1st hour it's hard to give a 5 star review. People think we don't add enough value but hang on a minute... Can you live in your house without water or heating? Is there a need? Absolutely!

Here is an example:

Whould you spend 300-400£ to buy a gadget that allows you to control your heating from your 1000£ iphoneX away from home? Oh yeah!
But when the plumber charges you 100£ to fit it and get it done in 20min because he's been doing this all his life, you've just been robbed! Give him 2-3 stars and let others know! (I'm talking about the majority of people don't take this personal, I don't even know you :smile2:).

I never take my car to a large company as the value of the car I've got now is less than 2000£ if that, but what if i was a "high class" wealthy person own a 60.000£ car? I would pay them extra to collect it from my house if i could as I will earn more staying focused on other tasks rather than wasting my time driving to their place and asking questions all the time!

I never had any problem/negotiation working with wealthy people, restaurants, etc. They are my future target customers. They completely understand the value I add and just want the job done!

Chris
yeah the bigger (regional) plumbing companies have bad reviews compared to smaller companies. not entirely sure why, but the reviews on Yelp seem genuine. Smaller companies have excellent reviews.

The bigger national car repair facilities here are awful. They cheat people, and their employees are generally not very knowledgeable.

Its nice to hear that its different overseas. Means that it could happen here at some point.
 
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Soundmaxx

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Former Plumber here, worked in London for 12 months a few years ago as well! Good luck @Soundmaxx, I wonder if you could work on say a 12 month house service, changing tap washers and cistern washers or something like that, sell the customers on the benefits of not having dripping taps, cost of dripping taps, waste of water etc... Would require a bit of follow up calling and likely people might not be bothered especially if their taps aren't dripping yet..

What about the hot water boilers that heat the radiators, do they ever require the system to be flushed, or the control taps to be changed? Just thinking (typing) out aloud here..

The last company I worked for here in Australia manufactured free standing water chillers, we would ring the customers and try and get them on a 12 month service rota, was changing a filter and a washer basically, 10 minutes work if the unit was working fine already, an easy earner.
Hi mate, glad to chat with a former plumber :smile2:.

I've worked in London 3 years but it was an absolutely nightmare trying to get in jobs on time! I was spending more time commuting than actually working. An absolute rat race!
I live in Liverpool now, massive difference! The most important is that I feel better and motivated.

Thanks for sharing your ideas, I will include all sorts of plumbing repairs in the contract.

The heating system needs flushing once per year (400/600£ cost) if you want to have a healthy and efficient boiler. It's the worst nightmare for a homeowner! Also the boiler itself needs servicing and gas inspection once per year.

Water chillers might work in Australia but I haven't seen many here. We are using kettles and hot water boilers to make a brew instead :smile2:.

What are you up to now if you don't mind asking?

Chris
 

Soundmaxx

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yeah the bigger (regional) plumbing companies have bad reviews compared to smaller companies. not entirely sure why, but the reviews on Yelp seem genuine. Smaller companies have excellent reviews.

The bigger national car repair facilities here are awful. They cheat people, and their employees are generally not very knowledgeable.

Its nice to hear that its different overseas. Means that it could happen here at some point.
Well it's not so much different here but tradesmen are still motivated and working hard when they want :smile2:.

I don't know what is to follow after Brexit though...
 

GoodluckChuck

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I've worked in residential construction my whole life and now spend most of my time as a marketing consultant for construction companies so I'll share what I see.

Residential construction is super fragmented. There are so many factors but I believe one of the main ones is that so many companies are run by tradesmen, not necessarily businessmen. The vast majority of small businesses are very small operations with no or little payroll. Here's an interesting read by the Harvard Business Review with a breakdown of the remodeling industry. https://www.google.com/url?sa=t&sou...FjAAegQIBRAB&usg=AOvVaw1p9u2A33LhyiaWcUyoqdoR

Plumbing is a little different in that I know more plumbing businesses that actually have a payroll. I think it's because plumbing is more specialized therefore more scalable.

Besides all trades being plagued by a shortage of good workers, I see two main areas that are inhibiting the easy growth of businesses, particularly new ones. Customer acquisition and retention.

On the acquisition side, new companies have a hard time entering the market and capturing share. The local markets are mature and the few companies that have invested heavily have a firm grasp on their marketing. A new company coming in either has to be really great at finding their own customers or invest heavily in the outsourcing of building assets that can bring in new customers.

The days of starting some Google ads and blowing up your business overnight are over, at least in populated areas. There is just too much competition to barge in and take a share of the market without a huge investment of time and capital. Strategies have to include multiple channels and companies have to be really good at all the other areas of business to make it worth while.

Another crux of residential construction marketing is the boat load of lead resellers that have come to dominate over the years. Homeadvisor is probably the largest one. They invest so many millions into local SEO and advertising they have made it hard for small companies to compete in their own market. It worked for a while but as of the last few years these lead resellers have begun to charge too much for low quality leads that contractors are pissed. I talk to multiple contractors every week that are trying to get out of paying thousands for junk leads they received. Homeadvisor alone is like a bulldozer running over and squashing small construction businesses before they ever really begin. The only companies I see profiting are the ones that can afford a really high acquisition cost, perhaps by increasing the LTV of each customer.

That brings me to retention. Almost all construction companies I talk to say word of mouth is their favorite lead generation method, but they don't actively pursue it. That's why startups like Househappy are popping up everywhere that promise to allow construction companies to automate the nurturing of relationships with past customers so they will keep calling back. It's a huge step beyond the old fridge magnets. The magnets work, don't get me wrong, but having magnets be your only retention strategy is not sufficient.

So, these three factors: 1. Labor shortage, 2. Client acquisition, and 3. Client retention are all holding companies back from growing. I'm sure there are other things that I'm not aware of as I don't run a regional construction company.

The last thing that comes to mind as Im about to press post is the sheer area of the US. Regional companies usually cover a few large metro areas but they don't cover the entire region. It doesn't make sense for a plumber to drive 100 miles when another plumber is only 5 min away. I'm sure there companies that service multiple metro areas. If one is NYC and the other is LA, is that Nationwide?

If you can come to be a big player in a few large metro areas, I think that would be quite a large operation. But, like every business, you get one piece working then build another.
 
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hawktoy85

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@Soundmaxx ,

I am also in the trade industry, finish carpentry, and looking at a way of turning my business into a Fastlane opportunity. I am looking into writing a book on the subject or maybe creating a training course? I have 18 years of experience in my trade and also have a few product ideas but they would only be for other finish carpenters. So I worry the market for my product would be to small.

Do you have any product ideas that would make other plumbers or even homeowners lives better?

I will be following your journey. Good luck.
 
D

Deleted74396

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I'm not a tradesman but you might be interested in Joseph Valente's story. He started as a plumber. In 2015 he went on The Apprentice UK, won the 250k investment, for his business ImpraGas. The business is worth over £12M now!
 
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D

Deleted74396

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Well it's not so much different here but tradesmen are still motivated and working hard when they want :smile2:.

I don't know what is to follow after Brexit though...

Brexit will likely increase the earnings of tradespeople, especially after the announcement they are looking at an Australia-style points system, so I wouldn't worry too much :)
 
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Bearcorp

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Water chillers might work in Australia but I haven't seen many here. We are using kettles and hot water boilers to make a brew instead :smile2:.

haha yes the weather does a good job of keep water cold over there, I’d never drank so many cups of tea as I did living there! Was just an example of a regular Maintenace service for recurring income.

I worked construction so traveling was alright, long commutes morning and night but at least to the same place each day.

What are you up to now if you don't mind asking?

Quit the slowlane just over 3 years ago to run my e-commerce company, completely different field to construction and building.
 

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Hi everyone. I've been a plumber in NJ (US) for a bit over 11 years. I've left, dabbled with other business ventures/investments and came back to get my license to bring the plumbing into the fastlane. I'm not sure about the UK (OP) but in the US you get licensed by state. The license holder has to own minimum 10% of the company. That's the only way to legally start a plumbing business in New Jersey. To go national is possible but seems like a big headache. Usually the statewide companies are niche in the industry. For example, they focus on pharmaceutical plants, power plants, stadiums... I don't really see statewide guys going for the residential or service work. It does seem tough to go fastlane with a trade though. One way to scale is by going after bigger jobs. However, if you under bid a big job, that's all it takes to put the company out of business. It happens quote often over here. A company grows and gets big and gets one bad luck job that puts them under. I don't think there's any way to protect the downside for the contractor. I think that's how it is as long as you're working under a General Contractor.
 

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One way to scale is by going after bigger jobs. However, if you under bid a big job, that's all it takes to put the company out of business. It happens quote often over here. A company grows and gets big and gets one bad luck job that puts them under. I don't think there's any way to protect the downside for the contractor. I think that's how it is as long as you're working under a General Contractor.

Very much what happens here, time and again I would see, or now days read about builders going broke and trades not being paid, in almost all cases (as best as one can tell from the outside looking in) it's due to over expansion, taking on too much at once, something has to give..

EDIT* Which is why I think for a trade to be fastlane it needs to be recurring income like a membership based model, regular committed servicing etc. Going down the building path violates too many CENTS requirements in my view.
 
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Soundmaxx

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I've worked in residential construction my whole life and now spend most of my time as a marketing consultant for construction companies so I'll share what I see.

Residential construction is super fragmented. There are so many factors but I believe one of the main ones is that so many companies are run by tradesmen, not necessarily businessmen. The vast majority of small businesses are very small operations with no or little payroll. Here's an interesting read by the Harvard Business Review with a breakdown of the remodeling industry. https://www.google.com/url?sa=t&sou...FjAAegQIBRAB&usg=AOvVaw1p9u2A33LhyiaWcUyoqdoR

Plumbing is a little different in that I know more plumbing businesses that actually have a payroll. I think it's because plumbing is more specialized therefore more scalable.

Besides all trades being plagued by a shortage of good workers, I see two main areas that are inhibiting the easy growth of businesses, particularly new ones. Customer acquisition and retention.

On the acquisition side, new companies have a hard time entering the market and capturing share. The local markets are mature and the few companies that have invested heavily have a firm grasp on their marketing. A new company coming in either has to be really great at finding their own customers or invest heavily in the outsourcing of building assets that can bring in new customers.

The days of starting some Google ads and blowing up your business overnight are over, at least in populated areas. There is just too much competition to barge in and take a share of the market without a huge investment of time and capital. Strategies have to include multiple channels and companies have to be really good at all the other areas of business to make it worth while.

Another crux of residential construction marketing is the boat load of lead resellers that have come to dominate over the years. Homeadvisor is probably the largest one. They invest so many millions into local SEO and advertising they have made it hard for small companies to compete in their own market. It worked for a while but as of the last few years these lead resellers have begun to charge too much for low quality leads that contractors are pissed. I talk to multiple contractors every week that are trying to get out of paying thousands for junk leads they received. Homeadvisor alone is like a bulldozer running over and squashing small construction businesses before they ever really begin. The only companies I see profiting are the ones that can afford a really high acquisition cost, perhaps by increasing the LTV of each customer.

That brings me to retention. Almost all construction companies I talk to say word of mouth is their favorite lead generation method, but they don't actively pursue it. That's why startups like Househappy are popping up everywhere that promise to allow construction companies to automate the nurturing of relationships with past customers so they will keep calling back. It's a huge step beyond the old fridge magnets. The magnets work, don't get me wrong, but having magnets be your only retention strategy is not sufficient.

So, these three factors: 1. Labor shortage, 2. Client acquisition, and 3. Client retention are all holding companies back from growing. I'm sure there are other things that I'm not aware of as I don't run a regional construction company.

The last thing that comes to mind as I'm about to press post is the sheer area of the US. Regional companies usually cover a few large metro areas but they don't cover the entire region. It doesn't make sense for a plumber to drive 100 miles when another plumber is only 5 min away. I'm sure there companies that service multiple metro areas. If one is NYC and the other is LA, is that Nationwide?

If you can come to be a big player in a few large metro areas, I think that would be quite a large operation. But, like every business, you get one piece working then build another.
Wow... that's a hell of tips mate! I really appreciate the time you spent to share this.

Back in the day as a teenager (20years ago), I was working within my uncle's building company. You are right, there wasn't any payroll in place. Wages getting paid weekly cash in hand. I'm not sure how it works now.
For plumbers though that wasn't the case. Every plumbing firm had its own accountant dealing with payments, taxes, payslips, etc.

Fortunately, I have realized being a good tradesman doesn't make you a good manager, CEO, accountant, marketer, etc.
It's a human resource system, I can't control everything myself. I will create a team around the business from the early stages.

I've moved up north 3 years ago and haven't pay a penny on advertising! All my customers come through word of mouth. Keep in mind my prices are not low. I'm not chasing the cat ;).

I rung lead resellers once. You are right, once they explained to me how it works I just put the phone down! Some plumbers I know they are happy working with them though. Sorry, not for me.

I wouldn't travel 100 miles for a job that's true. Selling franchises to other contractors included in my business plan.

Thanks again!
Chris
 
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Soundmaxx

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@Soundmaxx ,

I am also in the trade industry, finish carpentry, and looking at a way of turning my business into a Fastlane opportunity. I am looking into writing a book on the subject or maybe creating a training course? I have 18 years of experience in my trade and also have a few product ideas but they would only be for other finish carpenters. So I worry the market for my product would be to small.

Do you have any product ideas that would make other plumbers or even homeowners lives better?

I will be following your journey. Good luck.
Hi mate, glad to see more tradesman in the forum. I thought I was the only one as most of traders chasing the money and hardly think about different ways scaling their business.
I was one of them but after reading MJ's both books something clicked in my mind! I bloody new it there must be other ways rather than increasing my working hours!

I don't know what kind of courses carpenters need but on plumbing there are plenty! WRAS, unvented cylinder, gas commercial/domestic, pipefitting and many more. I might think about running a training center in the future.

I've also had a brainstorming about how to make a plumber's life easier. I came up with some product ideas but I haven't chase it yet.

Nice to have you here mate, all the best to you!
 

Soundmaxx

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I'm not a tradesman but you might be interested in Joseph Valente's story. He started as a plumber. In 2015 he went on The Apprentice UK, won the 250k investment, for his business ImpraGas. The business is worth over £12M now!
Thanks for the info, I'll definitely check it out!
 
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hawktoy85

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I don't know what kind of courses carpenters need but on plumbing there are plenty! WRAS, unvented cylinder, gas commercial/domestic, pipefitting and many more. I might think about running a training center in the future.

Just remember we are trying to be "Unscripted ". So creating an online course would be a good option. Especially if you could get it accredited and people could get there license from it. It would be easily scalable.
 

Soundmaxx

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Just remember we are trying to be "Unscripted ". So creating an online course would be a good option. Especially if you could get it accredited and people could get there license from it. It would be easily scalable.
Good point, there isn't online courses for plumbers so far though. I reckon the reason is that it's a service business and the candidates needs to get their hands on it if you know what I mean. I can't see how you can become a licensed plumber without been on the tools.
Especially gas related works I wouldn't give a license online mate. The trader has to prove that he knows what he does.

Can do the theory online but on the practical side I would need to be 100% sure that the candidate follows the safety regulations when installing boilers, gas fires, etc.
 

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