Podcasts

#19 How Steve’s Plumbing Succeeds

By Service Excellence Training

Jan 27, 2014

This is how Steve’s Plumbing did $230,000 in 1 month with 4 plumbers. While Steve spent 2 weeks in Hawaii.

In this episode of the Service Contractor Radio Show, Steve tells us just how he made it happen.

Announcement

The next P.R.E.S.S. P.L.A.Y. Training Seminar will be in Austin, TX. Tech Series, taught by Terry Barrett and our Sales Series, taught by Todd Liles.

Pearl of Wisdom

“In everything give thanks.” 1 Thessalonians 5:18 Set backs can be a blessing in disguise

Tech Tip of the Week

Record and track your phone calls. You need to know your lead sources, and your capture rates. A great resource is the company CallSource. There are others, but I believe CallSource may just be the very best at what they do.

HOW STEVE’S PLUMBING SUCCEEDS

Below are the highlights of the 3 primary topics I wanted to know about when it comes to Steve’s Plumbing. I have taken some of Steve’s quotes and condensed them into bullets. Listen to the whole show to get the full insights.

1. Accountability in a relaxed environment

Todd: “Steve’s Plumbing is the most relaxed, yet accountable business I work with, is it intentional?

Steve: “Our philosophy is to expect things to go right and if they don’t then let’s find out how to make it go right next time. Our philosophy will never include blame. We will always be fair and encourage them to achieve a better level or different result next time.”

Todd: “How do you discipline your team and still keep the relaxed environment?”

Steve: “Most of the time the other team members have already disciplined them. If it’s serious, I pull them in and never change my voice tone and handle it fairly.”

2. High Level of Performance

Todd: What’s your average ticket and closing ratio?

Steve: Over $1000 and closing at 90%

Todd: What is the biggest thing a 4 man company should know about reaching high level performance?

Steve: Establish an image. Wear uniforms, and wrap your trucks.

3. Marketing

Todd: What do you spend monthly in Marketing?

Steve: $24,000 a month (TV, Direct Mail, Newsletter, Internet, Yellow Pages, etc.)

Todd: What is working the best for you right now?

Steve: Internet pay per click program drives traffic to our website. We also market heavely to our current market base.

Todd: How should I market my company if I don’t have much expendable cash?

Steve: Focus on your existing client base. Put a membership program in place if you don’t already have one.

Listener Submitted Questions

Jason Sunkel, Sunkel Plumbing: “Do your customers ever feel “gypped,” and if not why?

Steve: “If you are not getting some negative feedback, then you are not doing it enough. A little is to be expected with high producers. Our procedure involves trust building, and a thorough inspection. Honest people look at the recommendations and can see the tech is helping to prioritize what is needed. We also consistently follow-up on work recommended, and work performed.

Robert Koster, NRG Home Services: “Are all of your techs performing equally or do you have one “Superstar” carrying the load each month?”

Steve: “We do not have an exclusive selling tech. All of our techs are capable of being equal. They all sell, and do the work.”

Rory Ward, Rory Electrical Services: “How do you capture the potential client that is just looking for the price? What percent of that $230,000 is profit?”

Steve: “We build value with the client, and focus on build a list of clients who are value minded. Our monthly budget needs to get over $150,000 a month. Anything over that is extremely profitable.”

William Bennett, The Plumbing Doctor & Michelle Johnson, Dial One Johnson Plumbing: “How does 1 person in the office handle the calls and all that goes with office staff?”

Steve: “It was about finding the right person. We have an exceptional team member in Kyle. He loves what he does, and has set the bar.”

5. Eric Grenier, Northern Air ClimateCare: “Was all that work done, billed out and paid for in December, or are these sales that still have to be installed/carried out? What do you do when you have more calls than people to do them?”

Steve: “Every dollar was sold and installed in December. Every tech knows to maximize every call regardless of what is waiting. We fight to take care of the client. If they have to wait, we waive the service call charge if rescheduled to next day.”

6. Mike Jones, Clark County Plumbing & Drain: “What is your call volume?”

Steve: “2 calls per tech is ideal each day. I’m convinced if we only had 1 call, the guys would still be able to produce.”