$1.1 to $1.75 Million – The 2 Year Results Report on Royal Plumbing

Royal Plumbing has been part of our Accountability Program for the last 2 years.  In that time, they have grown from 1.1 Million Dollars in Residential Plumbing to 1.75 Million.

There is no doubt that they are doing a lot of things really well.

This Report Serves 2 Purposes:

1. Provide a Guideline for Growth for companies with similar history.
2. Highlight the Success of the Work of Service Excellence Training when working with small plumbing companies.

Growth Patterns of a Small Residential Plumbing Company – $0 to $1,000,000

David Havelka, the owner of Royal Plumbing, established his company in 1990.  Between 1990 to 2011, David took several steps to take his company form $0 to $1.1 million in sales.

1. He stepped out on faith.  David believed it was his calling to start a company.
2. Tried it the “Hard Way.”  This is a common approach.  Most of us in business try doing it the hard way in the beginning.  The hard way is running your business with no outside input.
3. Sought help.  In time, David sought after help.  Before doing business with SET, he tried two other approaches.

• Consultancy:  David tried the services of a consultancy group.  It cost him $6,000; and two days.  At the end of the two days, they basically told David he wouldn’t make it.
• The Affinity Groups:  The next step for David was to join an affinity group.  There are several very good ones out there today.  This was a big help for David’s Plumbing company, as it allowed him to grow to the million dollar phase of his business.

Then David’s growth slowed downed for several years.  It was hard to get unstuck from the position he was in.  So, he looked for additional solutions.

Working with Service Excellence Training – $1,100,000 to $1,750,000 in 2 Years

David’s next step was to grow his plumbing company, and himself, past the sticking point.  He was referred to SET by Alan O’Neill of Abacus Plumbing.  After several consultations, David decided to incorporate our work into his growth plans.

Over the last 2 years combined, David has grown by:

• $782,000 in additional net service revenue
• $204,914 in additional net profit before tax
• $52,000 is the number royal plumbing will have invested in training and consultancy.  (Not a bad trade.)

Our plan for David was simple and effective:

1. Create a clearly defined budget.  We put a budget in place that was perfect for David and his company.  Aggressive, yet realistic.
2. Meet consistently with the management team.  Our meetings serve to encourage, motivate, and create accountability.
3. Train consistently with the field techs.  The training lessons give the guys practical skills to use in the field.  This was huge in increasing the average tickets and self confidence of the plumbers.

Next year, Royal Plumbing will be budgeted for over $2 Million in residential sales.