For each household there is a probability that 1 in 15 will need a heater any given year. For a 50000 home area, a hopeful 5% market share gives 166 heaters the 1st year at $300 minus expenses and overhead...$50000 less overhead and expenses and franchise fee???????????????????????how much is left?????? In a 50000 home area how much share can you expect with a new name??? I dont see it.
About 5 years ago, they where hiring me to install water heaters for them in the Chicago area. They where paying me $1200 for a 40 Gal and $1400 for a 50 and up from there. Then after about 10 jobs they hit me with the sales pitch.
There is another franchise doing the same thing....water heaters only, but I can't recall the name right now.
Franchises suck anyway. Let 'em do their $599 water heaters. I'll keep doing mine for $1200.
Water heaters are a lost leader here. Too many schmo's that don't know thier overhead and costs, giving the damn things away.
I personally am getting sick and tired of busting my ass humping those damn things up the stairs to barely show a profit, if any profit at all.
a$$holes don't take into consideration the time required to apply for a permit, pick up the permit, pay for the permit, pick up the water heater, dropcloth the house, haul the old "hot water heater" (that will get a rise out of someone:laughingto the scrapyard, etc...................
Course, they probably are not getting permits, anyway.
I think I'll start quoting them over the phone, at what they should be. If they don't like the price....See ya.
Really!? We have the same crappy Blowe's and HD installers here and we still manage to sell some quality installs here. Day before yesterday I replaced a 1 year old Whirlpool. Who replaces a 1 year old water heater unless they come to understand that they made a mistake and they are better off cutting their losses and installing quality from a quality company. I agree it's more difficult but it can be done. The fact is that we are selling more tankless than tanks these days which cost a whole lot more. We don't cut the price just to make a sale.
Re think your approach and you can still make money on water heaters. You may not get every one but the ones you get will be profitable.
Plumbers who whine about low wages are the one's most likely causing the problem.
Too many plumbers in business for themselves who don't have a clue about running a business or being in business! Makes it much harder on legit businesses who understand profit/losses.
We have a lot of legitimate plumbers who undercut everyone else. They aren't making any money other than wages and when the economy slowed down, many of them came knocking on our door looking for jobs. :no: Sorry, I cannot think of any circumstance where I would hire someone who wasn't smart enough to figure out that you need more than wages to run a successful business.
Some people are in business for the right reasons, but there are a lot in business because they cannot work for anyone else. Difficult / independent types are the most hard headed.
Back on topic - Mr. WaterHeater does have a nice ring to it. I can see where it can be successful. So much so, that I even thought of opening a Madame WaterHeater before any Mr. WaterHeater invades our territory. For whatever reason, consumers are drawn to specialties. Even though the franchise is Mr. WaterHeater, can't see any reason why they wouldn't offer general plumbing services as well.
Yep. I changed my company name to specialize in sewer and drain work, to attract more of that kind of work. Yet I still do mostly other plumbing repairs, I replace a lot of water heaters lately for some reason.
Yep - love when the water temperature varies wildly. :whistling2:For some reasons the water heaters don't like it.:laughing:
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