My Nephew the Plumber

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iwire

iwire

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My nephew stopped by last Sunday, he and I talked about the company he works for.

It is a flat rate residential service company.

Your kitchen drain is stopped up Mame?

Yes we will be right out....$425.00 Master card, Visa no problem.

Your toilet needs replacing....$1,200 and up depending on what model.

What does he do for at least 1 hour per week at the office?

Sales training, every call he goes on he is expected to sell more service.

No 'free estimates' just a book of set prices for each thing they do.

It certainly gave me a lot to think about.
 
Bob, it does cause my interest to perk up too. I know most companies make tons of money that way, and might even get a repeat customer once every blue moon, but I'm not sure that I can be THAT type of a salesman.
 
flat rate companies that make us look sad.....

flat rate companies that make us look sad.....

Is it Gem by any chance that your nephew works for?
 
MAK said:
A $1200.00 toilet replacement would probably force me to take a ride up to the big green bridge.:D
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I hear you....but they are busy.

He is doing pretty well for himself, and the work is for the most part in climate controlled conditions. He is not running pipe in a muddy trench in 35 F drizzle.
 
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Truth be told, as of the past month or so I've been giving serious thought to finding other ways to supplement my income. I love this trade and I can't see leaving it for good, but does anyone else feel that it's getting harder and harder to make money doing electrical work? I know there are plenty of successful EC's out there, but for every succesfull one there must be a bunch who are scraping by or failing.
 
peter d said:
Truth be told, as of the past month or so I've been giving serious thought to finding other ways to supplement my income. I love this trade and I can't see leaving it for good, but does anyone else feel that it's getting harder and harder to make money doing electrical work? I know there are plenty of successful EC's out there, but for every succesfull one there must be a bunch who are scraping by or failing.
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There are probably as many struggling plumbing contractors as struggling ECs. You just don't hear about them because it is not in your circle of interest.
 
peter d said:
Very similar to Gem...same basic concept and sales principles. A gold mine to say the least.
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Yes, no doubt.

I have no interest in plumbing but I think we as electricians could learn something from those models.

Not sure it would work for commercial service but it appears like it can work in residential.
 
that type of system can and does work...it takes a tremendous amount of time, effort and money to make it profitable though....and as minuteman stated, it's not for everyone...however, it's based on actually making a living (and dare say, profit?) doing this type of work (as Peter said)...

so, scoff all you want at the system, but i'd bet iwires nephew (who i believe is an apprentice?) is taking home more money every week (not to mention having better benefits) than quite a few Journeymen and Electrical Contractors on this very board....that's something to ponder...
 
iwire said:
Yes, no doubt.

I have no interest in plumbing but I think we as electricians could learn something from those models.

Not sure it would work for commercial service but it appears like it can work in residential.
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it works for small commercial...the one location mom and pop shops, but they are simply glorified residential in most cases...but not so much for multi-location and corporate commercial...
 
iwire said:
Not sure it would work for commercial service but it appears like it can work in residential.
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It already does - Gem added electrical service a few years back, and some of the other flat rate plumbing contractors in the area are adding electrical services as well.
 
petersonra said:
There are probably as many struggling plumbing contractors as struggling ECs. You just don't hear about them because it is not in your circle of interest.
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there are...but most of them are former electrical contractors who think like current electrical contractors...
 
emahler said:
but i'd bet iwires nephew (who i believe is an apprentice?) is taking home more money every week (not to mention having better benefits) than quite a few Journeymen and Electrical Contractors on this very board....that's something to ponder...
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They list him as a Service Technician but he still has 1.5 years to his license.

And yes he seems to be doing well for himself, decent bonus program for hours worked vs hours charged etc.
 
In case anyone is interested - the company I keep mentioning, Gem Plumbing, is one of the pioneers of the flat rate system. They are a local success story that started as a small "mom and pop" and are now one of the biggest flat rate companies in the U.S.

http://www.gemplumbing.com/
 
gem is/was a member of Nexstar which encompasses P/HVAV/R and Electrical Contractors...

they have since gone on to offer their own training to other contractors...

the information is there, the systems (while not perfected) are tried and true...if more guys used them, the industry would be in better shape...

edit to add: so is Hub Plumbing & Mechanical:D
 
It looks like both companies mentioned in this thread, Gem and Hub are members of Nexstar, according to their website. Like Bob said, it gives you something to think about....
 
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