Pay Yourself a Complement

Adding the right services can create tremendous opportunities for your business.

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The theme of this issue of Cleaner is Business Diversification. It may not sound exciting, but it's something every business owner in this industry should be thinking about, because diversifying service offerings can facilitate expansion and generate business even in difficult times.

There are many plumbing contractors that don't handle sewer and drain cleaning or repair and replacement. These services often fall to specialized drain cleaning contractors like those featured on these pages every month. Yet these pages are also a testament to the stability and opportunity this line of work can bring to a traditional plumbing contractor. The volume of new installations can rise and fall with the housing market and other factors, but things break, and cleaning and repair work is always necessary.

A few months ago I wrote a column extolling the virtues of specialization and the need to establish a core business from which you can build. Let's assume you've already done that. The next step, if growth is a goal, is to logically expand service offerings from that core. I say logically because it might not make sense for an inspection company to jump into something as technical as pipe bursting if it isn't doing any other repair work. However, adding basic jetter service to clean lines that have just been inspected is a logical step with great revenue potential. The key to many contractors' success is expanding with complementary services.

If your focus is traditional plumbing, CCTV inspection is a great bridge to the cleaning and rehabilitation end of the business. Inspection is a natural complement to your repair service, while pipe bursting would stray far from your core business. You could offer pipe bursting, but it won't directly complement your other services so there will be fewer opportunities to profit from it. If you're already doing dig-and-replace work, CIPP lining or pipe bursting could complement your existing services quite nicely.

In the October issue of Cleaner, we profiled Levine and Sons of Redford Charter Township, Mich., a third generation plumbing company that established its roots long before CCTV inspections and CIPP lining were even a thought. Approximately 80 percent of the company's business is still in traditional plumbing installation and repair, but they've moved beyond the traditional scope of plumbing services. Today, the company also offers drain cleaning, sewer lining, pipe bursting, CCTV inspection and dig-and-replace sewer line work. The company devotes a full-time crew and three trucks to this segment of the business.

The key is that all these services complement the company's traditional plumbing repair work, opening additional revenue streams. If a customer calls with a backed-up sink, the Levine team can handle everything from cabling the drain to lining the sewer lateral, depending on where the root problem lies. The services all play off their basic plumbing repair work.

The value of diversification is something Clint Kershaw thoroughly understands. Kershaw's business, Mr. Rooter of the Hudson Valley, is profiled in this month's issue. Kershaw and his crew handle blocked sewer lines with everything from jetting and rodding equipment to complete pipe lining and pipe bursting services. Technicians also work on fixtures, water supply lines and water heaters, and the company even offers excavation and installation of new onsite treatment systems.

"One of the challenges in my business is finding people who have all the necessary skills, plus the customer service skills to do all of that," Kershaw says.

Indeed, having the expertise to tackle a wide range of services is a challenge for any business, which is why it's important to build a strong foundation of knowledge and services before branching out. But once you've accomplished that, expansion is the next logical step.

Adding a new service is a major decision, and one that should be carefully thought out. That said, additional services present new opportunities for your business and new avenues to reach your goals.

So keep your eyes out for the next opportunity, and enjoy this month's issue.



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