Why I’m raising our plumbing service prices
Over the past three years, I have made every effort to minimize price increases for my plumbing and heating services. For ten years prior to that, there were virtually no increases at all.
In order to maintain this, I have explored cost efficiencies, sought out cheaper suppliers, and reduced marketing expenses – basically, everything I could do to avoid a significant price increase.
However, there comes a point where you have to accept that there is no alternative. It is not a decision I take lightly.
Therefore, I would like to provide a detailed explanation as to why prices have recently risen considerably and why companies like mine still offer great value for money, even if we are slightly more expensive than some of our larger competitors.
Nobody wants to increase prices annually. Ideally, my company would adjust prices in line with inflation, resulting in minimal increases. However, no company that prioritizes its customers wants to do this frequently, as it may be perceived as greediness.
This creates a situation where we have to absorb the extra costs ourselves, consistently sacrificing margins in order to remain competitive and employable. If we raise our prices while the competitor down the road doesn’t, we find ourselves in trouble.
At some point, all service providers need to raise their prices to a level that allows them to generate profit and sustain their business. Otherwise, they risk going under.
Finding good staff has been a significant cost increase that has almost crippled me. The quality of candidates has significantly decreased over the past five years, resulting in high agency fees and job site expenses, with employees leaving within weeks. This problem has only worsened, making skilled and experienced technicians in high demand, allowing them to demand higher salaries. I pay my team well and provide them with various benefits, and thankfully, most have been with me for many years.
On the subject of larger companies, they often keep their prices competitive by employing sales trainers and using tactics such as upselling. Unlike us, they consider suggesting unnecessary services or upgrades as an essential part of their business model. Their technicians are trained, incentivized, and paid to extract as much as possible from customers. They also typically apply higher margins on boiler hardware, making it much more expensive for the customer. I detest this kind of business practice.
This is why smaller companies like mine are better. We are more personable and apply smaller, more reasonable margins to outside goods. We actively seek ways to save you money and always prioritize your financial well-being.
It’s a matter of culture. My team and I believe in treating customers the way we would want to be treated. We are also happy to provide free advice, within reasonable limits. Don’t hesitate to reach out with any questions, no matter how trivial they may seem.
Ultimately, I need to raise my prices to a point where I can cover costs comfortably and make a small profit. Otherwise, I might as well just be a self-employed plumber. However, that has never been my goal. I wanted to build a reputable company, assemble an excellent team, and offer the best plumbing service in the UK.
Thank you for taking the time to read this. I hope you understand the reasoning behind the recent price increases. Feel free to share this blog post.
