Help! I can’t get my plumbing company out of the red!

If you’re reading this, chances are your plumbing company is in trouble. The red ink is piling up, and no matter how hard you work, you just can’t seem to dig your way out. I get it—it’s frustrating, overwhelming, and downright exhausting. But here’s the good news: you’re not alone, and there’s a way out.

In my 40 years of business coaching, I’ve seen countless small business owners in your shoes. The truth is, being great at plumbing doesn’t automatically make you great at running a plumbing business. But that’s where I come in. Together, let’s walk through the key steps to get your business back in the black.

1. Face the Numbers Head-On

Here’s the deal: You can’t fix what you don’t measure. If you don’t know your financial numbers inside and out, it’s impossible to turn things around.

  • Profit margins: Are you charging enough? Many plumbers underprice their services out of fear of losing customers. But undercharging is a surefire way to stay in the red.
  • Expenses: Review your monthly costs. What’s essential, and what’s just draining your cash?
  • Job profitability: Every service you offer should be analyzed. Are your emergency calls making money or just wearing out your team and vehicles?

The goal is simple: get clear on what’s working and what’s not.

2. Stop Undervaluing Your Services

Here’s a hard truth: You can’t undercharge your way to profitability. If you’re not charging what your expertise is worth, you’re not just losing money—you’re training customers to undervalue you.

I know what you’re thinking: “If I raise my prices, I’ll lose customers.” Let me challenge that mindset. The customers who leave over price hikes are likely the ones causing the most headaches anyway. Your best customers—those who value your reliability and professionalism—will stay, especially if you communicate the value behind your services.

3. Get Customers Calling YOU

If your phone isn’t ringing enough, you’re not doing enough to market your business. And no, “word-of-mouth” isn’t a marketing strategy—it’s luck. Let’s turn luck into a system:

  • Your website matters: Make sure it’s easy to find, loads quickly, and explains why YOU are the best plumber in town.
  • Google My Business: If you haven’t claimed and optimized your profile yet, stop what you’re doing and fix this. Your competitors are showing up when people search “plumber near me”—are you?
  • Ask for reviews: Every happy customer is a walking, talking advertisement. Turn those experiences into five-star Google reviews to build trust with potential customers.
4. Run Your Business, Don’t Let It Run You

A plumbing business that’s bleeding money is often a sign of inefficiency. Are your techs spending more time driving than working? Are your processes inconsistent? It’s time to tighten the ship.

  • Routing software: Invest in tools that minimize travel time and maximize jobs completed each day.
  • Playbooks: Standardize your processes so every tech knows exactly how to handle each type of job. Consistency saves time and boosts customer satisfaction.
  • Upskill your team: A better-trained team means faster, higher-quality work—which translates to more revenue and happier customers.
5. Keep the Customers You Already Have

Acquiring new customers is expensive. Retaining the ones you already have? That’s where the real profit is.

  • Offer maintenance plans: An annual check-up plan not only provides recurring revenue but also keeps you top-of-mind when something goes wrong.
  • Build relationships with local businesses: Property managers, contractors, and real estate agents always need a reliable plumber. Be their go-to.
  • Stay connected: Send out periodic reminders or seasonal tips. A simple email saying, “Don’t let freezing pipes ruin your winter!” can prompt calls and keep your brand fresh in their minds.
6. Fix Your Cash Flow Leaks

If cash flow is your biggest problem, you need to address it now. Here’s how:

  • Deposits up front: For larger jobs, always require a percentage upfront. This protects you and improves your cash flow.
  • Automate invoicing: Don’t waste time chasing payments. Automated systems handle reminders and follow-ups, saving you time and headaches.
  • Negotiate smarter: Talk to your suppliers about extended payment terms or discounts for early payments. Every little bit helps.
7. Ask for Help

No business owner gets to the top alone, and you don’t have to figure this out by yourself. Whether it’s working with a coach like me or joining a group of business owners who’ve been through similar challenges, getting an outside perspective can make all the difference.

Final Thoughts from Coach Bob

Here’s what I want you to remember: You’re not just a plumber. You’re a business owner. And that requires a different skill set than fixing pipes. The good news is, you can learn those skills—and you can absolutely get your business out of the red.

It starts with one step. Maybe that’s analyzing your numbers, maybe it’s raising prices, or maybe it’s calling someone like me to help you map out your next move. Whatever it is, take that step today.

Your plumbing company has potential. Let’s fix those financial leaks and get you back to building the profitable business you deserve.

Ready to take action? Contact me to start building your profitable future today.