Common Problems When Managing A Plumbing Business

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The plumbing industry has grown steadily by 2.1% since 2017. This makes it one of the most actively growing industries in the US. By January 2022, there were 129,517 plumbing businesses operating in the US, which is likely to increase by 2023. However, running a plumbing business can be as challenging as any other establishment. Although it has peculiar problems, some general business solutions can be applied. Here are some common problems to be aware of.

Difficulty in customer retention

Like any other entity, repeat business for plumbing works often depends on client satisfaction. When the customer is dissatisfied with the work done, the likelihood of hiring another plumbing company is higher. This makes customer retention a huge challenge for plumbing businesses. According to an IBIS World survey on this issue, three out of five customers are likely to try another plumber. It further reported that this often happens when the customer or client is unhappy with a previous job.

Indeed, it is a very competitive industry with high customer expectations. So, if you’re struggling with customer retention, perhaps, it will be worthwhile to assess your services. For example, do you frequently attract people with unbelievable discounts and offers? If that is the case, you may rather be putting potential clients off. Those unbelievable discounts may be interpreted as sub-standard service. Furthermore, do you have hidden charges only known to the customer after the job is done? Once again, if you answered in the affirmative, it may be time to review that strategy. Many things often account for why your plumbing business cannot retain customers. However, when you identify those loopholes, things could turn around for the better.

Problems with pay systems

A survey stated that 50% of plumbers face cash flow problems. This, however, applies mostly to licensed freelance plumbers as those who work as employees for companies often do not experience this problem. It is even worse for plumbing businesses with multiple branches in different locations. It takes a lot of effective management skills to handle so many workers in different locations. Without it, your business may struggle with making timely payments, among other things. You will need an effective payroll system to avoid any delays. Moreover, because many plumbing companies pay their workers on a commission basis, this is necessary.

Non-existent or poor target marketing

First of all, it’s already been established that the plumbing sector is highly competitive. For whatever reason, it’s been discovered that some plumbing businesses fail to work on effective marketing. The truth here is that people do not seek information about plumbing businesses until they’re in dire need of one. However, if your target marketing is done right, you will have clients calling for routine plumbing checks.

Target marketing involves studying the demographic of your business’ location. If it is mainly a residential area, your marketing can focus on homeowners living in really old properties. The reason is that old houses often have hidden plumbing issues usually discovered when things get out of hand. By positioning your business as the go-to plumber, you increase your business’s chances of receiving more calls for old home jobs.

With proper planning and effective strategies, most of these problems can be avoided in your plumbing business. No business operates without glitches. However, what you do to avoid or minimize them can influence your success.

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