Service Plumbing Pros | Matt Michel
Two dozen ways to be easy to do business with: part II
Twelve tips to make sure that your customers keep coming back.

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Are you easy to do business with? You probably think that. Everyone thinks that. Chances are you can become easier to do business with; everyone can. Here are twelve ways that you can be easy to do business with. How many do you do?
1. Present options
No one can know the personal situation of a consumer. Those who look flush with cash might be broke. Or, they might be planning on moving in a couple of months. Those who look impoverished might just live simple lives with lots of cash in the bank. Instead of trying to guess what people want, give them options so they can pick what’s right for their circumstances. Offer people a repair option, a replace option and an upgrade option. Then, let them choose.
2. Offer financing
Things cost more today than a few years ago. Some consumers are cash strapped, but they still need running water, hot water, sinks that drain and toilets that flush. Arrange for financing options and present monthly payments as well as a total price.
3. Accept credit cards for the same price
People hate it when you charge extra to use a credit card. Build the merchant service fees into your price and charge everyone the same thing, no matter how they pay. If someone writes a check, you may not have merchant service fees, but you have overhead to handle and deposit it.
4. Price well
Make sure your pricing is up-to-date and allows you to hit your targeted gross and net profit margins. Plumbers who price too low are more apt to get into disputes with customers because there is no margin for mistakes, generosity, or cost-of-business situations.
Things cost more today than a few years ago. Some consumers are cash strapped, but they still need running water, hot water, sinks that drain and toilets that flush. Arrange for financing options and present monthly payments as well as a total price.
5. Create a warranty reserve
In your pricing, build in a 1% or 2% warranty reserve. Think of this as an insurance policy for times when things go wrong. If you need to give money back, cheerfully charge it to the warranty reserve and move on.
6. Allow one-time price adjustments
If a customer argues about a price after the fact, allow them to make a one-time price adjustment. Tell them to pay what they think the work is worth, with the understanding that this is a one-off. If they use you in the future and you price upfront, they will pay the full price.
7. Offer unconditional money back guarantees
It sounds scary to offer an unconditional money back guarantee. In truth, it makes it easier for the consumer to do business with you and rarely is used. When it is used, either you screwed up and would do it anyway or you are dealing with the customer from hades and would gladly give the money back to make her go away. If you’re going to do it anyway, put it in writing and take credit for it.
8. Never argue
You cannot win an argument with a customer, so do not engage. This is especially true in today’s world of reviews and social media.
9. Say what you can do
Never tell a customer no. Instead, tell the customer what you can do. When the customer asks for the impossible, say, “Well, here’s what I can do…”
10.First person ownership
When there’s a problem (and there will be problems), do not make customers repeat themselves to multiple employees. Whoever gets told the problem first, takes ownership until it is resolved.
11. Empower your people
Hat in hand with taking asking employees to take ownership of a problem is empowering them to resolve it. Give them the ability to give money back or do whatever it takes to make the problem go away. If you feel the need, give employees a monetary limit. For example, tell them they can do what is necessary, up to $500 or $1,000 without getting approval.
12. Follow up
Follow up on all work. Call to see if things are working as the customer wants. Fix any issues fast. Thank them for their business if everything is working as it should.
Buy Matt Michel’s inspirational book for the service trade, “Contractor Stories” on Amazon. Check out ServiceRoundtable.com for downloadable business tools to help like guarantees, service agreements, pricing calculators and more.
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