Expanding?

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speedystevie

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Long Island, NY
I've been toying with the idea of expanding our electrical business to also include plumbing. I myself don't have any experience with plumbing but would consider classes and licensing or hiring an experienced plumber. We have half of our customers asking if we know plumbers and we need to refer the work off. If we did plumbing I am sure the customers would also ask if we know a good electrician.

I was wondering if other electrical contractors have pondered this same thought and what their feelings are on the subject. In our area there is allot of money paid for plumbers about 120% over an electricians hourly rate.

I know it would take some work on my end to learn the trade but I consider myself a fairly smart man and know how to run a successful business, I just wonder if I were to outfit a plumbing truck and higher an experienced plumber how well it could work out. hiring a guy with plumbing and electrical experience would be great because in the beginning his down time would be used efficiently.

What's your feelings on this topic?
 
Most plumbers that I know do make more than me. On a kitchen or bath renovation a company with these services combined could really clean up. I guess I would want to know how my insurance company would handle it tho.
 
Oakey said:
Most plumbers that I know do make more than me. On a kitchen or bath renovation a company with these services combined could really clean up. I guess I would want to know how my insurance company would handle it tho.
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I already put an e-mail into the insurance company to find out the financial impact on that end, I will post the results.

The longer I think about this move the more I talk myself into it. If we can be as busy with plumbing as we are with electric things would be good. Like I said, at this point I dont know much about plumbing but I do know how to make a contracting business work. Just add skill and watch it grow.

I hope im not getting ahead of myself, I dont think I will.

Any input would be much appreciated.
 
I was in a similar position with regards to hvac work. My advice is that it is extremely difficult to depend on someone other than yourself. For me it has worked out ok, we now do the hvac on about 10 projects a year, but there were definitely some kinks along the way. My situation was a little different, though, as I have 3 experienced hvac installers who are now doing electrical for me. I had both the personnel and the work, and it was still a little difficult. It seemed like a no brainer, as people were asking me for hvac contractors. It was also easier as there is no licensing in our state for hvac work. What also helped is that hvac systems are governed by our building code, and I am also a building inspector.

I'd consider some long term situations like what happens if you hire a plumber, do some jobs, then he leaves. You could be left hanging with nobody to finish the work.

I wouldn't add the plumbing unless you brought in a partner you could trust, or else had your own plumbing license.

Just my thoughts.
 
After you add plumbing you'll want to add HVAC. their margins om material are better than any of the trades.
What ever plan you go with on adding plumbing will work with HVBAC too.
Have you looked to buy an existing or retiring plumbing business to add to your portfolio?
 
Doing plumbing and electrical has worked great for my company. Older folks in particular appreciate being able to call someone they trust for both trades.

Our work is about 80% electrical, 20% plumbing. I don't do sewer work (I explain it's cheaper to call Roto-Rooter, because they specialize in cleaning sewers.)

Be aware that your liability insurance will nearly double in cost.
 
andycook said:
Doing plumbing and electrical has worked great for my company. Older folks in particular appreciate being able to call someone they trust for both trades.
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Andy, Did you know plumbing yourself when you got into it or did you hire someone who knew. I am kindof leaning tourd learning the new trades myself as I seem to be the only one I trust with my business, except of course my wife.. But thats still up in the air too
 
speedystevie said:
Andy, Did you know plumbing yourself when you got into it or did you hire someone who knew. I am kindof leaning tourd learning the new trades myself as I seem to be the only one I trust with my business, except of course my wife.. But thats still up in the air too
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Years ago (31 to be exact), my first employer was a company that did plumbing and electrical. I had just gotten out of high school vocational electrical training, and so knew a little about the electrical trade. They taught be both trades. Plus, 30+ years in any trade teaches you how to use tools, read books, and learn from other trades.
 
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