Contractor Corner

Key KPIs In Your Plumbing Business

You’ve had a plumbing business for awhile now but I bet if someone asked you what your 9 KPI’s were, you couldn’t say. Do you even know what a KPI is? Knowing these things will mean you have a better handle on your business.

KPI is an acronym for key performance indicator. It’s a tool used to evaluate the health and success of a business. As a plumbing contractor there are some that are universal KPI’s. They involve knowing your financial numbers as well.

Sales and cost per truck

One of the first two KPI’s you need to know are how well your trucks are doing, meaning the sales per truck and the cost per truck. If the sales outweigh the costs, you’re doing well. If the costs start to outweigh the sales you will need to determine if it’s because of the age of the vehicle or because sales are down.

Next, look at your fleet

What is the profit and loss per truck? It means taking the first two above and looking at the fleet as a whole. Again, if the trucks are older they may be the problem. If not, it may be your techs, sales or other things making your fleet responsible for losses instead of profits.

Look at your techs

What is the cost to keep each? What that entails is their salary, vacation and sick time, health insurance costs, payroll taxes, 401K costs or whatever else is included in their benefits package. This can help you figure out who is benefitting your business and who is not. It also will help you know one of the other KPI’s involving your techs, their break even. What this means is what is the point that the cost of the tech is even with the sales or jobs attributable to them.

The next few deal with your revenue

What is the revenue generated per department? Your break even sales per month (or revenue minus costs so the answer equals zero)? How many jobs do you need to sell per month to get to the break even? What about your GMP or gross profit margin? All of these will tell you a few things. One, the number of jobs you need to sell and perform in order to get above break even and make a profit. Another is how well your techs are doing their jobs. If you have any that aren’t, investigate why, provide more training or let them go.

Put your KPI’s together and you will know where you need to improve or how you can expand your business goals.

If you don’t know your KPIs (or cringe at the thought of having to keep track of them), let us do it for you! Check out our services for Plumbers!

Key KPIs In Your Plumbing Business - You've been a plumbing contractor for awhile now but I bet if someone asked you what your 9 KPI's were, you couldn't say. Do you even know what a KPI is? Knowing these things will mean you have a better handle on your business.

You’ve heard about the great benefits of being a virtual contractor, but you aren’t sure if it would work for you since you own a plumbing company. The good news is it certainly will.

Here are some tips to help you make the switch to becoming a virtual contractor!

1. Don’t lose any future business.

You know your business is crazy busy. You know that you’ve lost jobs because you just don’t have the time to call them back or when you do it took too long.

Did you know that a virtual customer service company makes sure that you don’t lose any future business? They can because they are there to answer your phones while you are busy servicing other customers.

2. If you have office staff, ask yourself why you’re losing business?

Because that staff doesn’t know enough about your business and see themselves as message takers. Just getting a bunch of message slips doesn’t help reduce your workload.

3. A virtual customer service company knows plumbing contracting.

They know the difference between an emergency and a service call. They can help your customers even if you’re busy. Because their focus is businesses like yours, all the reps are highly trained to be able to help your customers get effective help when they call in.

4. If you don’t have office staff and a bookkeeper, it’s a pretty sure bet that hiring a virtual customer service company will save you money over hiring them yourself.

There are plenty of expenses you’ll save: employment taxes, workers compensation insurance, health insurance, benefits and other expenses. Employing office staff will definitely be a huge expense.

5. The biggest boon to your business will be the satisfaction of your clients.

They will get answers right away given by a knowledgeable person who understands your business and their problem.

Emergency calls will be dispatched to you or your techs immediately. Non-emergencies will be scheduled for a service call on your own calendar. No call backs necessary! Plus your invoicing will be done promptly and payments posted. No internal bookkeeper necessary.

It is possible for you, as a plumbing contractor, to go virtual. Try it today and see for yourself. It’s a decision you won’t regret.

Give us a call today! (813) 438.3666 We will explain exactly how you can take advantage of all the great technology available to every plumbing company nationwide.

5 Things You Need To Know To Make Your Plumbing Company Virtual... You've heard about the great benefits of being a virtual contractor, but you aren't sure if it would work for you since you own a plumbing company. The good news is it certainly will.

Have you ever heard of a virtual contractor? You may be one and not know it. So what is one? A virtual contractor doesn’t have an office staff. Why would they? That would take the “virtual” right out of the equation. So what do they have instead?

A virtual contractor uses a virtual customer service company

This company provides all the services that a full staff would without the cost of employing several office people. One service is answering your phones and helping your customers. Knowledgeable service reps can provide information to you and your customers meaning you get the service calls scheduled and emergencies taken care of right away. Scheduling and dispatching is also part of the service provided. Your customers will get services needed and you won’t lose business to lack of someone answering your phone and pulling out your calendar. Lastly, using QuickBooks Online for your bookkeeping, the service is a one stop place to have an “office.”

How does this benefit you, the contractor? Your only employees are your service techs. You save the cost of worker’s comp insurance, taxes and benefits for what would be at least 3-5 people for a smaller contractor or more for a larger one. That’s tens of thousands of dollars a year.

It also garners you the level of customer service and financial transparency that your customers expect with a much lower cost to your business.

So are you a virtual contractor? If not, consider it!

Find out more about becoming a Virtual Contractor with just a quick call! (813) 438-3666

What Is A Virtual Contractor?

If you’ve been in the contracting business for decades, you know how technology has changed the business.  If not, you rely on technology that has become second nature to you.  So what technology has helped shape contracting today?

Portability

Computers have been around for decades and many businesses have used them.  However computers have become smaller and more portable.  Contractors today can use their mobile phone, a tablet or small laptop on the job site to keep in contact with their office, check their schedules, log expenses and invoice a job right on site.  It is possible to run an “office” without a full staff.

Communication is instant

Contacting customers and prospects can be done from anywhere with cell phones.  Staying connected to your techs to find out the progress of jobs is instant with cell phones and GPS trackers.  This all can give you the assurance that your customers are being given the service they and you expect.

Your schedule

By using your cell phone, tablet or laptop you can be in control of your schedule as well.  Or you could allow an outside service company the same access to handle your scheduling and dispatch for you.  Being able to be in that “in the moment” in control of your time.

The same goes for your accounting

Programs like QuickBooks allow you to add and track payments to you, expenses and pay bills with a click of a button on your smartphone, tablet of laptop.  Instead of taking time to sit at a desk and log each payment or receipt you can do it on the fly.  Again, you can also hire a customer service company that also handles QuickBooks for you.  Either way it will save you time.

3 Ways Technology Has Changed The Contracting Business

As a contractor, you know that keeping on top of your books and ledgers is important. It takes time daily to keep things up to date and that may be something you just don’t have the time, or know how, to do. So what do you do?

You can hire a bookkeeper but that still means you have to do the final steps or also hire an accountant to give you the total picture you need. You could also hire a service that gives you a full service QuickBooks Team. So which is best for you? Depends on what each provides to you, the business owner.

Bookkeeper

A bookkeeper is a person, employee or outside person, who is responsible for recording all your business transactions. When you send an invoice, they record it. When you receive a deposit or payment, they record it.

They could use your QuickBooks software or their own system. They have some knowledge about accounts, sales, receivables and maybe even payroll.

It still leaves a lot of work for you. You need to set up and manage your QuickBooks software, produce and send invoices, send your payments, reconcile your credit card statements and analyze the financial information.

QuickBooks team

A full service QuickBooks team such as Contractor In Charge will be able to do a lot more for you. They will do the setup and management of QuickBooks and manage your accounts receivables and accounts payables.

This includes doing your invoicing, cash receipts and payment posting as well as managing your vendors and posting and paying invoices to your vendors.

The team will also reconcile your monthly bank and credit card transactions and close out each month for you. After that they will provide you with monthly analysis of cash flows, monthly financial statements and do your sales tax reporting and filing.

Sounds like the Contractor In Charge team would take a lot of things off of your plate, letting you do what you went into business to do… serve your customers.

If you’d like more information about a QuickBooks Team visit our In Charge Services Page!

What Is the Difference Between A Bookkeeper and A Full Service Quickbooks Team ... As a contractor, you know that keeping on top of your books and ledgers is important. It takes time daily to keep things up to date and that may be something you just don't have the time, or know how, to do. So what do you do?

One aspect of business that is so important to keep up to date and accurate is your bookkeeping and accounting. As busy as you are, it’s hard to keep up with that part of your business. Instead of hiring someone, friends have suggested using Quickbooks, but you aren’t the most computer savvy and really don’t have the time to use it anyway.

Some options

Bookkeeping is really important. It directly affects your business in so many ways. Not only in paying your taxes, but also in planning things like growing your business, purchasing new equipment, hiring staff or techs and so on.

Putting it off isn’t an option. So what can you do? You could hire a bookkeeper, but that entails benefits and all of the things hiring an employee entails. You could hire an outside bookkeeper, but then you are one of many clients.

The solution

Use an outsourcing virtual service that handles your front office and back office as a unit. Why? They already know your business. You were careful to find a service that knows contracting inside and out. They already have access to your scheduling software and have done a great job taking care of your clients and getting jobs on your calendar.

So why not turn over the invoicing and bookkeeping as well? Your scheduling software keeps track of the jobs in time and materials. They have what they need. It’s the perfect synergy!

Make your life even easier and outsource your Quickbooks today!

Start Outsourcing Your Quickbooks Accounting Today! Instead of hiring someone, friends have suggested using Quickbooks, but you aren't the most computer savvy and really don't have the time to use it anyway.