Why 78 Out of 300 Plumbing Companies Went Out of Business
At first, I wasn’t sure how to structure this post because I was worried about keeping your attention. But then I realized, if you’re the type of person who clicks on something you’re interested in, then leaves to go watch YouTube cat videos or whatever is on TV, then you’re not who I want to be talking with anyways.
This post is for the home service business owners that want to completely crush the competition in 2020. It’s for the people who want to thrive, make more money, and have more time to spend with their families or doing what they love. So if that sounds like you, then go somewhere quiet, eliminate the distractions and enjoy.
Why 78 out of 300 plumbing companies went out of business In 12 months
The stakes are higher than ever and the game is changing.
Last year I started a project that involved tracking 300 different plumbing companies across the U.S (excluding major franchises like Mr. Rooter and Roto Rooter) to see who grew, who failed, and who struggled. And out of the 300 plumbing companies, 44 have gone out of business, 23 have dramatically scaled down and 11 have been sold.
Out of 300 plumbing companies, 78 failed within just the last 12 months.
Before I show you how to thrive, I want to show you what ultimately led to the failure of so many businesses so that you can avoid the same mistakes.
Now, I can guarantee you that if you spoke with the owners, each one would tell you a unique story and reason why their business failed. But they would be lying. the truth is that there was only 1 reason their business failed: they weren’t getting enough clients.
The million dollar question then becomes: why weren’t they getting enough clients.
And here are the 3 reasons:
Lack of Education & Willful Ignorance
Most plumbing companies aren’t operated by Harvard MBAs. They’re ran by juniors who learned from their dads, or talented technicians.
While those people might be really good at being a tech, they’re probably not so good at being a business owner. And it’s not their fault either. On a day to day basis, they’re busy taking care of their customers, managing their teams, working on invoices, and ultimately, never have the time to learn business.
Even the ones that do want to learn business struggle because there’s more bad/vague/useless information around than practical things.
And although they know they need marketing, although they know they need more clients, although they know times are changing, they can’t help but bury their head in the sand like an ostrich while their life is catching fire.
Willful ignorance saved them the pain of having to evolve & adapt, but it lead to their business failing.
“The Old Donkey” Leadership
we all know that the older people get, the harder it is to change their mind. Most of the leadership would tell themselves the following stories:
- “What’s worked in the past will work in future”.
- “We’re safe. Our clients love us and we get plenty of referrals”.
- “We’re just not that type of company”.
- “We don’t do that”.
The ultra harsh reality is that, yeah, you can tell yourself those things. But your business is without a doubt going to fail. To avoid the mistakes that those business owners made, you have to be open to marketing ideas.
Once Burned Twice Shy
What if I told you that I would find clients for you, book them, and only charge you a fraction of the profit. It would be a no-brainer right?
It’s risk free, you’re guaranteed profit, and all you have to do is look at your calendar to see how much time you have. You basically get to decide how much money you want to make this week, next week, next month, etc…
This is what I do for my clients all day long, yet, when I phrase it as “lead generation” or “SEO”, their souls shiver with horror.
The second thing that killed those companies and will kill many more, is that they give marketing a shot, have a bad experience, and then they give up.
Here’s the truth: marketing is not an option. It’s a necessity. None of the companies that failed had a strong marketing or lead gen program, quite the contrary, they all relied on lead gen systems out of their control (Referrals, BNIs, etc…).
The truth is, if you don’t have a system where you can pay money to get a client, then you don’t have a business.
Unfortunately, these days most companies have to shake hands with a few snake oil salesmen before they find the real deal. And ultimately, the companies who get screwed over pay twice, once in money and a second time with their business.
Predictably Getting Clients
The only reason a business fails is because they lack profitable clients. And that’s the problem that I fix. I offer the single most risk-free and profitable marketing system available. It’s called Client Systems. In 2018, one of my clients, Steve from Max Plumbing added $45,000 to his monthly income using Client Systems. He had such a huge influx of clients, that he had to stop marketing because there weren’t enough technicians to handle the volume.
If you want to learn more, then click the button below to get our free case study: