My Foray Into Home Services

I have worked in the plumbing industry for 40 years. Most of that time has been in construction – everything from new homes to high-rise commercial buildings. I have owned my own business, worked as a project manager, a designer, an estimator, and a general manager. I have started commercial plumbing divisions, managed large crews of men, and taught classes in plumbing code.

Recently I took an interesting position starting a plumbing division for an HVAC and Electrical service company who wanted to add plumbing services. This article is what I learned about the growing Home Services Industry.

Many established mechanical contractors have added plumbing divisions as a way of cutting cost and allowing them to make combined bids on projects. Some plumbing contractors have moved into HVAC as well, but that is less common. HVAC is generally a much larger piece of the pie on a construction project, and mechanical contractors can often under price plumbing contractors by offering a combined bid for the Plumbing and HVAC.

Heating and Air Service providers have caught on to the same idea. They are adding plumbing and electrical services to their list in order to offer a “Whole Home” approach. And that brought me to a Heating and Air company who had already added electrical services and was ready for plumbing.

Every plumbing company offers some level of service and repair. It is part of servicing warranties and keeping existing customers happy. Some companies are all service and do very little, if any, new construction. There are some businesses who focus mainly on sewer and drain cleaning and only offer limited services beyond that. Each area – construction, remodeling, repairs, and drain cleaning – are virtually separate industries with very different business models.

In the burgeoning Home Services sector the idea is one company that can provide all of your services – a licensed and qualified handyman service. If they are already servicing your Heat and Air why not call them for plumbing and electrical?

Coming from decades in the construction industry one of the interesting things I noticed in the service industry is the emphasis on sales. Service Technicians are expected to be salesmen. Some and often all of their income is generated through commissions. If they are dispatched to a home for a toilet that will not stop running they are far more likely to recommend replacing the $250 toilet – for a hefty commission – than replacing the $15 flush valve. So the technician learns to replace fixtures not repair them.

Wages in the service industry are a good bit lower than in the construction industry as well, though with commissions the Service Tech can make a good bit more with far less experience. The average service tech has only 1-2 years experience and being a good salesman is more important than being a good plumber.

Don't get me wrong. I'm not talking about all service plumbers. There are really good plumbers out there who dedicate their lives to providing good service. My focus here is on the trend of big service companies who are offering Whole Home Services – those who put out slick ads, post billboards, radio and TV spots. They are hiring young people with a talent for sales and teaching them to replace fixtures. They are not training the next generation of plumbers.

These new Whole Home companies are doing the same thing to small plumbing service companies that the multi-bid contractors did to small plumbing companies – freezing them out of the market. The difference is what it does to the plumbing industry. The multi-bid contractors still needed qualified plumbers to do the work. The new service conglomerates only need more salesmen.

Some of these Whole Home companies are even cross-training their techs so they only need to send one person out on a call, so it may be an electrician suggesting you replace that dripping faucet or an HVAC tech recommending a re-pipe to fix that clogged drain line. I have taught courses at the local community college, I can teach anyone how to replace a faucet – that doesn't make them a plumber.

Maybe I'm just getting old, but I remember when the plumber who came out was a seasoned veteran of the plumbing industry. He had seen it all and done most of it himself. It's kinda like the difference between the mechanic who fixes your car and the salesman who just tries to sell you a new one. Next time you need a plumber, call a plumber and not a salesman.