customer no-show

[Spider]

One can decide to start a business with the notion of "just starting my own little business," and do just that - start a little business. And struggle indefinately to grow that business to something larger. Or one can decide to "start a big business." They will likely find that growing their start-up into a big business a whole lot easier. It's all in the mindset.

HT, I believe, has chosen the latter. In my opinion, with this as a goal, his "big business" approach is correct. Had he only wanted to have a little business, the small "wages" approach would have been adequate. As a soon-to-be "big business," the profit-minded approach is more valid.

Regarding the 1 in 20 success ratio: If there are 20 one-man plumbers plying for business in his area, even if he were to operate in "wage-mode" 1-20 could be anticipated. I think it is to be expected when he is competing "profit-earner" against "wage-earners"

In time, he will become more discerning and not bid for the type of work these people do. Right now, with the economy as it is in his part of the country, he must bid for everything available. For a company that is to be a big business, every lost bid is advertising - his business name gets out, the name is associated with quality work - and it is training - in meeting clients, in learning what makes clients tick, in discovering who the quality contractors are, in how to bid 'quality, and how to sell quality.

I think HT is on the right track.

[huggytree]

that 1 out of 20 was just a febuary thing...its already over and back to 1 out of 2. that post was about lowering my prices at cost in jan/feb to keep busy.

its all about there being no work....work is back! and im busy again!

if someone asks how much for ANY project i will gladly tell them over the phone...i get water heater calls all day long...i can give a flat rate for them easily. My main complaint with homeowners is that they think plumbing is 1/2 of what it is...i need to screen those people out because they aint gonna hire me....wasted bids = increased office time

Current Milwaukee,WI union wage (with benefits) $ 49.69


$ union wage $49.69
expenses $15.67
Workmans comp $ 2.47
S.S. $2.19
unemploy $ .50
Medicare $ .51
Officetime $14.00

total $85.03 to break even

profit $11.97

= $97 per hour

all plumbers in my area are $85-$125.......that $85 guy is the large, slap it together company who produces plumbing meant to last 1 year...mine is meant to last 20+

i often get medium size jobs done in 1/2 the time...when i see the other 2 bids from the other plumbers im ALWAYS in the middle...usually closer to the low bid too!

of course money plays a part in deciding who they hire....if it is the main reason i lose 100% of the time.....if its 25% i win every time.... my job is to screen out those people who are 100% about money...it will never be low enough for many of them and they will find a sidejob guy or a handyman to slap it together...i see their work all the time....when the house gets sold they pay me to fix it.many handymen dont get 1 fitting correct..pay me now or pay me later....