How Can I Improve My Profitability as a Plumbing Contractor?

If you are a plumbing contractor, you are always looking for ways to improve your bottom line as a business. Understanding your bottom line is essential, because it means the difference between your business being in the red, and your business being in the black. All contractors are looking to sustain their businesses while increasing their profitability. If you are looking for ways to improve your profitability as a plumbing contractor, here are some suggestions.

Your data tells your story

Are you one of those contractors whose eyes glaze over at the mere mention of data analysis? We understand, but you need to know that it is really important to look at your data to understand the ins and outs of your business. You need to look at your cash flow and changes to cash flow, your materials and purchases and their changes over time, your customer marketing and contacts, the number of estimates as opposed to job factors, and other factors that impact your business. If you study your data, you will be able to pinpoint areas where you can tighten up your resources, and areas where you are leaking money. You may also gain insights into marketing and advertising as well. If you are not sure how to study patterns within data, there are a lot of analytics programs to help you do just that.

technology is your friend

Speaking of technology, plumbing contractors should use technology to help come up with plans and spreadsheets to manage costs, accounts payable and receivable, purchases and marketing. Customer marketing and inventory are much easier with technology. There are workstations for contractors and their employees to manage jobs from their phones or tablets. You can even forecast the cost of projects, and make determinations about which projects to bid on, and which to pass up. This way, you will be able to make bids, market to customers, and analyze profits and losses realistically.

use the right estimator

Estimating is one of the most difficult jobs for plumbing contractors, because it takes into account estimating labor and materials for a specific job. If you have accurate estimates, you are able to determine how to allocate your resources. A good estimator also allows you to determine which of your estimates were right on the money, and which estimates were grossly off the mark. Estimators help you to figure out who your ideal customer is, which means you are able to target marketing and outreach towards customers who are the best for your business. This may also help you find new customers for your business, which will help to keep your business profitable with a steady income from customers who need your help with a remodeling project or for new construction.

Plumbing contractors work really hard for their money, so they need the best tools possible to help them manage their business, analyze their business, and market their business. With the right tools, your business can become profitable and remain profitable from year to year.