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  • #31
    Re: Business ethics: bidding a homeowner

    Originally posted by money in jetting View Post
    Hey Jones, I wish I could have your same "things will work out attitude". I follow business pretty closely. The out of business statistics are crazy. The other tradesmen at the wholesalers talking about how they would be better off working for someone else resounds all over the place. Ill bet you dont make very good money, your well liked, you get lots of referals.
    Now I wonder if you really understand business? I'll explain it for you. All these guys out of business have made more stable work for those that do have a clue. We are in business because we can replace a bib seat or cartridge and make it work. It works, Not just 8 months but for many more years to come. That customer is so happy with the repair they will trust me when I say it should be replaced.

    As for what I make? I sleep well, my family is happy and healthy. I am a rich man!

    I think well liked and referals go in the same boat. This is what generates volume. When it comes to success in lean times and generating volume in the midst of company failures I recommend reading the history of WalMart. The early years of course...I won't even shop there now.

    So the lesson is that there should be more demand than supply at the moment. There is continued growth just as fast as happy people talk. There is high repeat call for new work. All this is a good thing as those with money are beginning to spend it again.

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    • #32
      Re: Business ethics: bidding a homeowner

      You dont need to say what you make. I know the situation. You can have good morales and make 10% on 7 million/year revenues. Thats what I know about business. I also know that those out of work guys are stealing work by being cheap, alittle cash here a little barter there. They havnt disappeared they went on the cheap. How will your loyalty last when a customer gets a price from someone 25% less than your cost and there realy nice. Hungry peolpe are very nice to folks with cash.

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      • #33
        Re: Business ethics: bidding a homeowner

        Originally posted by money in jetting View Post
        Rick, Im very seriouse. Maybee plumbing culture is different here. My customers want a one time permanent fix, with no maybees involved. If we rebuild and theres a body warpage or a hair line crack and you cant se this with the nacked eye and it continues to drip or the drip reoccures in the near future, then customers want it all for free. Customers have very little understanding for anything but perfection the first time. I have found to deliver the expectation I must be 100% sure that the proposal will completely satisfy the customer. Also theres more percieved value to the customer when they get a new fixture. Our repeat customer rate is 71%. Im told the industry average is around 30%.
        This is from a different thread.

        With the numbers you quote for the average...it's very easy to see why so many are out of business.

        With the numbers you quote for yourself...nearly 1 out of 3 are not speaking in your favor. I must assume you work in a large urban area. If you ran those numbers in a small town, your business would be closed too. Remember a happy customer might tell 2-3 people. A ticked customer will tell everyone that will listen! 1 out of 3 talking all they can in a small area?

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        • #34
          Re: Business ethics: bidding a homeowner

          Originally posted by money in jetting View Post
          You dont need to say what you make. I know the situation. You can have good morales and make 10% on 7 million/year revenues. Thats what I know about business. I also know that those out of work guys are stealing work by being cheap, alittle cash here a little barter there. They havnt disappeared they went on the cheap. How will your loyalty last when a customer gets a price from someone 25% less than your cost and there realy nice. Hungry peolpe are very nice to folks with cash.
          I agree you have a point. It also ends when a customer wants to see a license and insurance.

          I have never been nor ever will be the cheap guy around. I am also sorry you could only pull 10% on 7mil...that must have bit hard and sucked!

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          • #35
            Re: Business ethics: bidding a homeowner

            I dont know about that. Im aware of about 10 small town businesses that are flat rating at about $350/hr. They are growing at about 3-20% per year. They aare part of the nexstar network. no, im not with nexstar. I would guess that they have a fairly low return customer rate. I do know that they have a very active reputation management process.

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            • #36
              Re: Business ethics: bidding a homeowner

              Originally posted by money in jetting View Post
              I dont know about that. Im aware of about 10 small town businesses that are flat rating at about $350/hr. They are growing at about 3-20% per year. They aare part of the nexstar network. no, im not with nexstar. I would guess that they have a fairly low return customer rate. I do know that they have a very active reputation management process.
              So little said and wow let me see where this goes.

              $350/hr? They have to charge this because they don't know how to fix a thing. This number incorporates 2 go backs and 3 finger crossings that maybe the unqualified plumber wannabe can fix a leak. Oh yeah they don't fix it because that takes some skill...they just steer toward replacement. [Again because they can't do the original job] But it's in the name of 100% care?

              $350/hr is so much care I hope they supply the lube too.

              Why do they grow? Is it really growth? Here we must look at the advertising expenses. When you compare the growth to advertising and offset by the go backs, that number of growth is a fabrication of so called clients that may call you back. It does not illustrate actual profit margin.or growth of that margin.

              Why would one need an "active reputation management process" unless they were screwing people in the first place?

              Nexstar was the training program.

              I have no doubt you are awesome at your calling as a New Car Salesman.

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              • #37
                Re: Business ethics: bidding a homeowner

                Originally posted by money in jetting View Post
                I dont know about that. Im aware of about 10 small town businesses that are flat rating at about $350/hr. They are growing at about 3-20% per year. They aare part of the nexstar network. no, im not with nexstar. I would guess that they have a fairly low return customer rate. I do know that they have a very active reputation management process.
                I haven`t heard so much crap for a long time but this seems to be what all your threads are about just crap crap and more crap as NH would say

                Tony
                Last edited by AFM; 10-21-2011, 07:32 AM.

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                • #38
                  Re: Business ethics: bidding a homeowner

                  Come on..$350.00 an hour?? Really??

                  I use flat rate as well in principle, but it's based off of T&M, but my numbers are not even close to that an hour.

                  I'm all for making money, but I also don't want to get thrown out of the house either and leaving a bad taste in the customers mouth.

                  Comment


                  • #39
                    Re: Business ethics: bidding a homeowner

                    Originally posted by money in jetting View Post
                    I dont know about that. Im aware of about 10 small town businesses that are flat rating at about $350/hr. They are growing at about 3-20% per year. They aare part of the nexstar network. no, im not with nexstar. I would guess that they have a fairly low return customer rate. I do know that they have a very active reputation management process.
                    Any chance you are a shill for nexstar?

                    Comment


                    • #40
                      Re: Business ethics: bidding a homeowner

                      Originally posted by Flux View Post
                      Come on..$350.00 an hour?? Really??

                      I use flat rate as well in principle, but it's based off of T&M, but my numbers are not even close to that an hour.

                      I'm all for making money, but I also don't want to get thrown out of the house either and leaving a bad taste in the customers mouth.
                      Flux he is including the charge for materials in that $350.00 an hour & it's an average.

                      Money in Jetting most of the plumbers on here take pride in their work , knowledge, ethics, & abilities. They are more concerned with providing quality service at a fair price then how many $$$ they can extract from a customer. I understand in your business model you can not do that. They are also experts in S**T, so when you give them some they what to do with it.

                      Comment


                      • #41
                        Re: Business ethics: bidding a homeowner

                        Originally posted by money in jetting View Post
                        I dont know about that. Im aware of about 10 small town businesses that are flat rating at about $350/hr. They are growing at about 3-20% per year. They aare part of the nexstar network. no, im not with nexstar. I would guess that they have a fairly low return customer rate. I do know that they have a very active reputation management process.

                        nexstar network sucks
                        This is my reminder to myself that no good will ever come from discussing politics or religion with anyone, ever.

                        Comment


                        • #42
                          Re: Business ethics: bidding a homeowner

                          I am not for taking advantage of anyone or anyone's situation. I do think flat rate works for a some things, like toilet and water heater swaps etc. With a flat rate quote the customer knows what they are getting and how much it costs ahead of time, no surprises. I would have a hard time justifying 350.00 an hour, but would love to make it. I wouldn't want to have to know about active reputation management to make it either. I do not do much service work because at an hourly rate it doesn't pencil out for me. I understand your business model, and I think that if I were a retail service plumber and wanted to be successful $$$ I would have to go that way as well. I think you could still be ethical with it. We are all in business to make as much money as possible and retire. I would rather be fishing than plumbing, especially service plumbing.

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