The plumbing industry from an employer's perspective

[cjplumber]

I'll take that back not at all. Now let me break it down.

#1 Min. experience just to qualify to take the c36 plumbing exam 4 years(California) if you pass you move down the list...

#2 You think getting your license is hard. Well now you have a license

#3 A license is no good with no customers, now that you have a license you need to get customers.

#4 Once you got customers you need insurance maybe employees now.

#5 once you got employees you are getting into a whole other game not just being the plumber any longer. 1 employee = workers comp = more expenses. At this point you are either the manager or the plumber can't do both. Because you need very good business skills, for taxes, workers comp, insurance, payroll, more equipment, fix broken equipment run your business etc and this list goes on.

From the owner side. Sometimes it feels like you are not working for you, but uncle Sam and the insurance companies are making the profit you can be making. While there are so many handy hacks and generals doing the work the actual plumber should be doing. Not only they are charging pennies but they are not licensed to even touch the plumbing. On top of this depending on where you live the economy is bad and many customer shop around to give you a water heater job or even just to replace a kitchen faucet, but there are also rewards in time you can retire early, give more to your kids, if your business works out. If it doesn't you will spend many years trying to figure it all out. Any other thoughts?

[cjplumber]

Originally Posted by cjplumber

I'll take that back not at all. Now let me break it down.

#1 Min. experience just to qualify to take the c36 plumbing exam 4 years(California) if you pass you move down the list...

#2 You think getting your license is hard. Well now you have a license

#3 A license is no good with no customers, now that you have a license you need to get customers.

#4 Once you got customers you need insurance maybe employees now.

#5 dealing with employees being late, not coming to work and more.

#5 once you got employees you are getting into a whole other game not just being the plumber any longer. 1 employee = workers comp = more expenses. At this point you are either the manager or the plumber can't do both. Because you need very good business skills, for taxes, workers comp, insurance, payroll, more equipment, fix broken equipment run your business etc and this list goes on.

From the owner side. Sometimes it feels like you are not working for you, but uncle Sam and the insurance companies are making the profit you can be making. While there are so many handy hacks and generals doing the work the actual plumber should be doing. Not only they are charging pennies but they are not licensed to even touch the plumbing. On top of this depending on where you live the economy is bad and many customer shop around to give you a water heater job or even just to replace a kitchen faucet, but there are also rewards in time you can retire early, give more to your kids, if your business works out. If it doesn't you will spend many years trying to figure it all out. Any other thoughts?

If you are not ready for all of the above. Get good at what you do and be the best you can be for the company you work for. Maybe you will move up to a shop manager and make a decent living or maybe even make what you want to make, benefits and all. Look for a company where you can grow and you can move up. Other than that roll up your sleeves, get your pipe wrench and your business skills if any and get down to business.

[phishfood]

cjplumber, thanks so much for your input.

I am currently running projects for a company that I have a long track record with. They like me, their customers like me, etc. I am also in the process of getting my license to contract plumbing. Based on the response to me getting my license, my business should do OK. Based on everyone's feedback, I have a future where I am currently working. But the head operations guy where I work is a micromanaging nutjob, we are moving to a subcontractor based business model that I don't like, and I feel like I am being held back from being the best plumber/leader that I can be by this confluence.

Hiring employees for my personal business scares me. I have decent people skills, so I don't mind running people (hell, I spend my days doing that now). But the cost of labor burden, lawsuits from "injured" employees (we have had a couple of those lately), employees who don't give two craps about your company, builders who think that you should do everything extra for free, while being unsafe while doing it, because they don't provide an safe worksite, and give them a bargain basement price at the same time, have really got me thinking that keeping my business to a size that I can do all of the work myself is a better idea.

[Chris]

I am not a plumber but pretty close, a pipeline contractor. I have done both worked by myself and now have four employee's and having those employees definitly can make you much more money but there is still a lot of headaches to deal with. My guys are pretty loyal to me but just like any employee the work slows down significantly when I leave the job site and things don't always get done at a 100% level. Also you will have to deal with wondering which guy if any is ripping you off in one way or another and hoping they show up every day. My main concern is getting work done at a professional level every day. The costs of taxes, insurance, work comp and the rest are not all that bad and should not be the deciding factor in hiring employees.

For example I have a buddy that does the same work as me but by himself, we will get roughly the same size job for about the same profit margin and I will bust it out in a week or so and he will take five to six weeks to do it on his own. In the end after payroll equipment, fuel and materials I will profit 10-15% more then him because of time spent on a job and I can move on to the next one.

The best advice I can give is that before you hire an employee save up at least a months payroll with taxes and toss it in a payroll account so that you don't have to stress out about payroll every week. I started my company three years ago being a month a head on everything and today I am still a month or more a head and the worries it lifts can not be beat.

[phishfood]

Chris, thanks so much for your input.

[Chris]

Any time. Let me know if you have any specifics I may be able to help with. I have been in this business my whole life and ran another for seven years before I started my own.