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6 Ways to Improve Profitability of Plumbing Businesses

Sageworks
March 3, 2015
Read Time: 0 min

When a plumbing business becomes more profitable, it is able to expand its offerings and attract more customers. Taking some of the following simple steps into consideration to improve profitability may give a business an edge against competitors and help make it more successful.


  1. GPS Tracking

    Try utilizing GPS tracking if there are multiple people out in the field to ensure the fleet stays productive and accountable. This will help deter employees from taking detours or spending company time carelessly. GPS tracking can also be placed on specific equipment to help keep track of inventory. This GPS tracking can create a geofence in the local area and show if any materials have left the area with or without authorization.


    1. Checking Suppliers

    Consider having a primary supplier. Combining the purchases that would normally be made with multiple suppliers into one large purchase with a primary supplier may encourage steeper discounts. This may also encourage a good relationship with the supplier, which could be helpful to your buying power in the future. Also, consider checking prices of possible suppliers outside of the primary supplier used at least twice a year in order to avoid contractors who overprice long-term customers. Comparing suppliers often will make sure the items being purchased are of the highest value and help get the best deal possible.


    Try our free cash flow solution, CashSage



    1. Hot-Spot Pipe Locator

    Try using Hot-Spot Pipe Locator from General Pipe Cleaners. It offers durability, accuracy and reliability in finding pipes. It pinpoints problems without destroying costly pavement or expensive landscaping to find breaks or blockages. This will reduce costs of having to replace pavement or landscaping after work.


    1. Using Electric Hoists

    Consider putting electric hoists on company truck(s) to load materials onto them. This will minimize back strain and give employees more energy and efficiency to work. It will make the process of loading trucks faster, increasing productivity and will deploy employees in the field faster. This will increase the number of projects that can be hit in a day.


    1. Focus Groups

    Create a focus group, made up of existing customers, for prospective services consumers may want. By discovering consumer desires, the feedback can help to pinpoint sought after services that can increase clientele in the local area.


    For more recommendations on how to improve profitability for your plumbing business, try our free cash flow solution, CashSage.

About the Author

Sageworks

Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

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