Skill: 1kalin/afrexai-plumbing-business (version 1.0.0)

# Plumbing Business Operations Run a more profitable plumbing company. Covers pricing, dispatching, licensing, inventory, and growth. ## How to Use Tell your AI agent: "Help me with plumbing business operations" and reference this skill. --- ## Pricing & Estimating ### Service Rate Structure | Service Type | Typical Range | Notes | |---|---|---| | Service call / diagnostic | $75–$150 | Covers truck roll + first 30 min | | Hourly labor (residential) | $90–$180/hr | Varies by market, license level | | Hourly labor (commercial) | $120–$250/hr | Prevailing wage on public jobs | | Flat-rate residential | Per task book | Standardize with flat-rate pricing manual | | Emergency / after-hours | 1.5x–2x standard | Minimum charge $200–$350 | | Drain cleaning (basic) | $150–$350 | Snake or hydro-jet upsell | | Water heater install | $1,200–$3,500 | Tank; tankless $2,500–$5,500 | | Repipe (whole house) | $4,500–$15,000+ | Copper vs PEX, access difficulty | | Sewer line replacement | $3,000–$25,000 | Trenchless vs traditional | | Backflow testing | $75–$250 | Annual certification required | ### Markup & Margin Targets - **Materials markup:** 30–50% over cost (higher on specialty fittings) - **Target gross margin:** 55–65% on service, 35–45% on new construction - **Net profit target:** 12–20% after overhead - **Flat-rate advantage:** Customers prefer known price. Build flat-rate book with labor + materials + margin baked in. ### Estimating Commercial Work 1. Takeoff from blueprints — count fixtures, linear feet of pipe, connection points 2. Labor hours = fixture count × labor units (use PHCC or MCAA labor tables) 3. Materials at contractor pricing + 25–40% markup 4. Add permits, inspections, equipment rental, subcontractors 5. Overhead allocation: 15–25% of direct costs 6. Profit margin: 10–20% depending on competition and relationship --- ## Dispatching & Scheduling ### Daily Operations - **Morning huddle:** 10 min max. Review board, flag callbacks, assign emergency slots. - **Dispatch priority:** Emergency → scheduled service → estimates → new construction - **Service windows:** 2-hour windows (8-10, 10-12, 12-2, 2-4). Never promise exact times. - **Drive time:** Max 30 min between jobs. Zone-based dispatching saves 15–25% fuel costs. - **Callback slots:** Reserve 1–2 slots daily for warranty/redo work. ### Tech Utilization - Target: 75–85% billable hours per tech per day (6–6.8 hrs of an 8-hr day) - Track: revenue per tech per day, average ticket, callback rate - Top performers: $1,500–$3,000+ revenue per day ### Software Stack - **Field service:** ServiceTitan, Housecall Pro, or Jobber - **Dispatching:** GPS fleet tracking (Verizon Connect, Samsara) - **Invoicing:** QuickBooks integration with field service platform - **Customer communication:** Automated text/email confirmations, on-my-way alerts --- ## Licensing & Compliance ### License Types (varies by state) | License | Requirements | Scope | |---|---|---| | Apprentice | Registered, supervised | Work under journeyman/master | | Journeyman | 4–5 years + exam | Independent residential work | | Master Plumber | 2–4 years journeyman + exam | Pull permits, supervise, sign off | | Contractor | Master license + business license | Bid and contract jobs | ### Key Compliance Areas - **Permits:** Required for new installs, repipes, water heater replacements, sewer work. Pulling permits = liability protection + upsell proof. - **Code:** International Plumbing Code (IPC) or Uniform Plumbing Code (UPC) depending on jurisdiction. Know which your state/county adopts. - **Backflow:** Annual testing/reporting required by water authority. Certified testers needed. - **EPA Lead-Safe:** RRP Rule for pre-1978 buildings. $37K+ fines for violations. - **OSHA:** Trench safety (competent person required), confined space entry for sewer work, PPE. - **Insurance minimums:** General liability $1M/$2M, workers comp (mandatory in most states), commercial auto, tools/equipment floater. - **Continuing education:** 4–16 hours annually in most states for license renewal. --- ## Inventory & Fleet ### Truck Stock Standards Every service truck should carry: - **Fittings:** Common sizes in copper, PEX, PVC, CPVC, ABS, cast iron (1/2" through 4") - **Valves:** Ball valves, gate valves, check valves, PRVs — residential sizes - **Water heater parts:** Thermocouples, gas valves, elements, anodes, T&P valves - **Drain supplies:** Cables (1/4" through 3/4"), cutters, auger heads - **Fixtures:** Faucet cartridges (top 10 brands), supply lines, angle stops, wax rings, flanges - **Tools:** Channel locks, basin wrench, tubing cutter, PEX crimp/expansion, soldering kit, camera (drain inspection) ### Inventory Management - **Par levels:** Set min/max for every truck stock item. Reorder at min. - **Weekly truck audit:** 30 min per truck. Missing inventory = lost revenue. - **Warehouse:** Central warehouse for overflow, specialty items, water heaters. - **Vendor accounts:** Ferguson, Hajoca, local supply houses. Net-30 terms. Negotiate annually. - **Shrinkage target:** Under 2% of materials cost. ### Fleet - **Vehicle:** Sprinter vans (preferred), box trucks for commercial, pickups for apprentices - **Maintenance:** PM schedule — oil, tires, brakes per mileage. Fleet downtime kills revenue. - **Branding:** Full vehicle wraps = 30,000–70,000 impressions per day per truck. Best ROI marketing. --- ## Marketing & Lead Generation ### Highest ROI Channels 1. **Google Local Services Ads (LSA):** Pay per lead, Google Guaranteed badge. #1 channel for most plumbers. 2. **Google Business Profile:** 5-star reviews drive calls. Ask every happy customer. Respond to all reviews. 3. **SEO:** "Plumber near me" + city pages. Long game but compounds. 4. **Referral program:** $50–$100 per referred job. Track and pay promptly. 5. **Home service platforms:** Angi, Thumbtack, Yelp — test each, track CPL. 6. **Vehicle wraps:** Passive brand awareness. Include phone number in huge font. 7. **Repeat/maintenance agreements:** Plumbing inspection + drain cleaning annual plan. $199–$399/year. Recurring revenue + first call rights. ### Key Metrics - **Cost per lead:** Target $25–$75 residential, $50–$150 commercial - **Booking rate:** 75%+ of inbound calls should book - **Average ticket:** Track weekly. Target steady increase via flat-rate and upsell training. - **Customer acquisition cost:** Under $200 for residential, under $500 for commercial --- ## Growth Playbook ### Stage 1: Owner-Operator ($0–$300K) - You run every call. Focus on service speed and 5-star reviews. - Build flat-rate pricing book. Stop hourly billing. - Get 50+ Google reviews fast. - Systems: basic CRM, QuickBooks, Google Business Profile. ### Stage 2: Small Team ($300K–$1M) - Hire first tech. Train on your flat-rate book + sales process. - Dedicated CSR/dispatcher (even part-time). - Systemize: truck stock, morning huddle, daily revenue targets. - Start LSA and SEO. Track every lead source. - Gross margin > 55% or you're pricing wrong. ### Stage 3: Growth ($1M–$3M) - 3–6 techs. Dedicated dispatcher. Office manager. - Maintenance agreement program (500+ members = stability). - Add services: water treatment, gas lines, excavation. - Commercial contracts for recurring revenue. - KPI dashboard: revenue per tech, avg ticket, callback rate, CSR booking rate. ### Stage 4: Scale ($3M–$10M+) - Department leads (service manager, install manager, commercial manager). - Apprenticeship pipeline — grow your own talent. - M&A: acquire retiring plumbers' customer bases. - Multi-location or expand service radius. - Private equity interest starts at $3M+ EBITDA. --- ## Financial Benchmarks (Healthy Plumbing Company) | Metric | Target | |---|---| | Revenue per tech per year | $250K–$450K | | Gross margin (service) | 55–65% | | Gross margin (new construction) | 35–45% | | Net profit | 12–20% | | Labor cost (% of revenue) | 25–35% | | Materials cost (% of revenue) | 10–20% | | Marketing spend (% of revenue) | 5–10% | | Overhead (% of revenue) | 20–30% | | Callbacks / warranty (% of jobs) | Under 3% | | Tech utilization | 75–85% | | Maintenance agreement penetration | 25%+ of residential customers | --- ## Common Mistakes 1. **Hourly billing** — You're leaving 20–40% on the table. Switch to flat-rate. 2. **No call tracking** — If you can't attribute leads to sources, you're wasting marketing budget. 3. **Underpricing emergency work** — After-hours is premium. Charge accordingly. 4. **No maintenance agreements** — Recurring revenue smooths seasonal dips and locks in customers. 5. **Ignoring permits** — Short-term gain, long-term liability nightmare. 6. **Truck stock chaos** — Every missing part = a return trip = lost revenue. 7. **Not training techs on sales** — Techs who can present options (good/better/best) double average tickets. --- ## Resources - **PHCC** (Plumbing-Heating-Cooling Contractors Association): phcc.org — labor data, training, advocacy - **MCAA** (Mechanical Contractors Association): mcaa.org — commercial labor units - **ICC** (International Code Council): iccsafe.org — IPC/UPC code updates - **Need AI automation for your plumbing company?** → [AfrexAI Context Packs](https://afrexai-cto.github.io/context-packs/) — pre-built AI agent configurations for service businesses ($47/pack). Or try the free [AI Revenue Leak Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/) to find where you're losing money.


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