Six Signs Your Plumbing Business is Experiencing Profit Leaks 

Imagine this scenario: Your plumbing business appears to be running smoothly. You are receiving a reasonable number of service requests. You have a team of highly trained and experienced plumbers to handle those requests. Your customers seem happy with your service based on the positive reviews and testimonials they are leaving. But your profit margins remain constant or even decline. Your plumbing business is leaking profit if this situation seems familiar to you.

Plumber fixing leaked faucet

Multiple factors could be causing your business to lose profit. You need to recognize what exactly is causing profit leaks and fix it. The identification process might involve examining business procedures, staff members, and customers to determine the aspects that might be hurting your profits. Keep reading to learn signs that your business is experiencing profit leakage.

1. Poor Customer Handling Strategy

Businesses across different sectors, including plumbing, handle customers at three different levels:

  • Recruiting new customers
  • Maintaining existing customers
  • Drawing maximum benefits from the customer base through referrals and the provision of new services

Examine your business processes to determine if you are addressing all three levels correctly. You might discover that you are neither actively recruiting new clients nor receiving referrals from existing ones.

You might also find that you are unaware of the unique pain points of your customers or unable to address their complaints. The inability to introduce new services to your current clients is another sign of an ineffective customer handling strategy. Fixing these issues can help seal profit leakage in your business and grow your earnings at a fast-paced rate.

Embracing technology is one of the most functional ways to keep clients happy and acquire new ones. A perfect example is a well-designed, user-friendly website where clients can learn more about your services and place requests effortlessly. Another example is the use of plumbing software to generate and send professional invoices to clients.

2. Not Generating Quality Business

Your plumbing company could be losing money if it’s not generating quality leads. Generating low-quality leads indicates that your marketing campaigns are ineffective or aren’t reaching the target customers.

Plumbing companies usually target local clients. These clients include owners of private homes, owners and occupants of residential properties, and business owners. Competition can be sometimes stiff if multiple companies target customers from the same locations.

You need more than just a team of experienced plumbers and attractive prices to set up your company for success. You must implement an effective marketing campaign to help you recruit new customers while retaining existing ones.

Besides a professionally designed website, you need well-researched and compelling content to engage your target customers. You also need to mine the gold on social media platforms. You can, for instance, use Facebook or Instagram to target your marketing campaigns to specific locations and groups of people. That way, you will generate leads that you can convert.

3. Poor Understanding of Your Revenue Sources

Your business could be leaking profit because of poor or lack of understanding of your revenue sources. Perhaps you don’t know which source generates most of your earnings. Maybe you are unsure if your services are priced correctly. Whatever the problem, you need to identify and resolve it.

You can start by creating an information structure that documents all the revenue sources of your business. You can then invest in the right software to manage your revenue sources. The software should give you the status of every revenue source of your business in real time.

Professional plumber at work

4. You Are Not Maximizing the Potential of Your Employees

Your company could be losing profits due to the inability to take full advantage of your employees’ potential. The following issues indicate that your employees are ineffective:

  • Your technicians lack the right tools and equipment to perform plumbing jobs.
  • Your technicians lack up-to-date training.
  • You cannot track the location of your staff members in real-time or rate how effectively they have done a task.
  • Inconsistent invoices: the invoice prepared by your technician differs from the actual one

Resolving the above issues can help prevent profit leakages and increase your proceeds. Investing in the latest tools and equipment will allow your staff members to perform their jobs effectively and guarantee full customer satisfaction for sure. Embracing the right technology will allow you to monitor the location of your technicians in real-time. It will also enable you to manage requests effectively and generate accurate invoices.

5. You Are Not Keeping Track of All Your Expenses

Failure to keep track of all your overheads is a sign that your business is leaking profit. The reason is that you cannot determine your actual income if you don’t know your overheads. Knowing your expenses allows you to find ways to reduce them and increase your income.

Expenses for your plumbing business include the cost of purchasing and maintaining tools, equipment, and trucks. It also includes the cost of purchasing supplies and expenses incurred by a technician when traveling to the customer’s location.

Investing in plumbing software that can generate invoices, track expenses, and allow online payments can help increase your profits drastically. A route optimization system can help you identify the best routes to minimize travel costs and ensure timely service provision.

6. Inability to Handle Emergencies on Time

Delays in handling emergencies are another sign your company is losing money. You can assess your business performance in addressing emergencies by checking the reviews left by customers. Complaints of delays or substandard work during emergencies mean you have a problem that requires an immediate solution.

You will lose customers and struggle to acquire new ones if your contractors are unreliable during emergencies. You need to improve your team’s response to emergencies. You can do that by ensuring your team has the required equipment, tools, and common parts stocked in service vehicles at all times.

Plumbing scheduling software can help you schedule and send plumbers to your customer’s location whenever they are needed. This software can go a long way in further improving your response time during emergencies.


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