I have said on this blog, in webinars and on podcasts the following words time and time again: Fewer than 5% of plumbing, HVAC, electrical and roofing companies dominate their markets.
Think about that for a second. If there are 100 plumbing companies in your market, fewer than 5 of them are getting the bulk of the business. It means the other 95% are trying to eke out a living from the kinds of customers who would never call the top 5% into their homes. And why wouldn’t they?
Because that customer group is cheap. Very simply, if you’re not in the top 5% of companies in your market is going to be the cheapskate market. Now don’t get me wrong; cheap people can be nice, go to church, pay their taxes and so on; but when it comes to buying decisions they will always cheap out. And who do cheap people call for plumbing, HVAC, electrical or roofing service?
You guessed it – the cheapest companies in town. If you’re not in the top 5% then you’re going to be dealing with cheap customers who, by the way, think you are way too expensive even IF you’re the cheapest guy in town.
Do you see where this is going? Somehow … some way, that top 5% contingent … they must be doing something differently.
You’re darned right they are. And you know who the top 5% in your market are. You probably think they rip people off buy charging too much money when you know the part only costs $X at the supply house. You hate those guys in the top 5% because they go into people’s homes and …. wait for it … “sell people things they don’t need”.
Hey, if that’s what gets you to sleep at night, grumbling about what the top 5% are doing then knock yourself out. You can go to work everyday at your business and spend the next thirty years trying to meet payroll.
Or you could start to examine what the top 5% are doing differently and what you can do to change your situation. Very simply, stop pissing and moaning about how hard it is to make money these days. It’s @#$% or get off the pot time. Explore the services which exist that can help you DRAMATICALLY change your situation.
And it doesn’t have to be me. It can be any contractor group. All of them are doing the EXACT SAME THING in people’s homes. They’re using some kind of up front pricing. They have scripting. Their techs wear nice white uniforms and have nice clean trucks. Their guys don’t look like they just got out of prison or a homeless shelter when they show up at people’s doors. They communicate value with homeowners. They offer solutions to problems homeowners aren’t even aware of yet. They up-sell – because that’s how you make money. These guys are professionally trained and they’re service professionals.
And yeah … those companies in the top 5%? They are a HELL of a lot more expensive than you are. And yet … yet somehow … somehow they are busy all the time and you are desperate for the work. How can a company that is the most expensive place in town be the busiest?
Systems. Processes. Procedures. Value building. Training. In short – the top 5% are there for a reason and that reason is because their owners want to be number 1. Not number 8 or number 16. They want to dominate. They want to grow. They don’t half-ass it. They have fostered a mindset for success in their company and they know that if they want to grow their business they have to make an investment in adopting proper systems and procedures while at the same time, TRAINING their team. Every day.
And here’s the thing. The top 5%? They used to be you. They used to have to struggle to meet payroll. They used to be on the “lowest price spiral of doom” until their owners got smart and realized there has got to be a better way.
Home Service Profits can show you a number of better ways, but you have to want change your situation.
So. Are you going to change or are you going to be changed? It’s up to you.