• Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
  • ENGINEERS
  • RADIANT & HYDRONICS
  • INSIGHTS
  • MEDIA
  • RESOURCES
  • EMAGAZINE
  • SIGN UP!
cart
facebook instagram twitter linkedin youtube
  • CONTRACTORS
  • BATH & KITCHEN PRO
  • BUSINESS MANAGEMENT
  • HIGH EFFICIENCY HOMES
  • TECHNOLOGY
  • WATER TREATMENT
  • PMC COLUMNS
  • PMC COLUMNS
  • Dave Yates: Contractor’s Corner
  • John Siegenthaler: Hydronics Workshop
  • Kenny Chapman: The Blue Collar Coach
  • Matt Michel: Service Plumbing Pros
  • Scott Secor: Heating Perceptions
  • ENGINEERS
  • CONTINUING EDUCATION
  • DECARBONIZATION | ELECTRIFICATION
  • FIRE PROTECTION
  • GEOTHERMAL | SOLAR THERMAL
  • PIPING | PLUMBING | PVF
  • PME COLUMNS
  • PME COLUMNS
  • Christoph Lohr: Strategic Plumbing Insights
  • David Dexter: Plumbing Talking Points
  • James Dipping: Engineer Viewpoints
  • John Seigenthaler: Renewable Heating Design
  • Lowell Manalo: Plumbing Essentials
  • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
  • RADIANT COMFORT REPORT
  • THE GLITCH & THE FIX
  • INSIGHTS
  • CODES
  • GREEN PLUMBING & MECHANICAL
  • PROJECT PROFILES
  • COLUMNS
  • SPONSOR INSIGHTS
  • COLUMNS
  • Codes Corner
  • Natalie Forster: Editorial Opinion
  • Guest Editorial
  • MEDIA
  • PODCASTS
  • VIDEOS
  • WEBINARS
  • RESOURCES
  • INDUSTRY CALENDAR
  • DIRECTORIES
  • EBOOKS
  • PM BOOKSTORE
  • CE CENTER
  • MARKET RESEARCH
  • CLASSIFIEDS
  • EMAGAZINE
  • EMAGAZINE
  • ARCHIVE ISSUES
  • CONTACT
  • ADVERTISE
  • PME EMAGAZINE ARCHIVES
search
cart
facebook instagram twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
    • BATH & KITCHEN PRO
    • BUSINESS MANAGEMENT
    • HIGH EFFICIENCY HOMES
    • TECHNOLOGY
    • WATER TREATMENT
    • PMC COLUMNS
      • Dave Yates: Contractor’s Corner
      • John Siegenthaler: Hydronics Workshop
      • Kenny Chapman: The Blue Collar Coach
      • Matt Michel: Service Plumbing Pros
      • Scott Secor: Heating Perceptions
  • ENGINEERS
    • CONTINUING EDUCATION
    • DECARBONIZATION | ELECTRIFICATION
    • FIRE PROTECTION
    • GEOTHERMAL | SOLAR THERMAL
    • PIPING | PLUMBING | PVF
    • PME COLUMNS
      • Christoph Lohr: Strategic Plumbing Insights
      • David Dexter: Plumbing Talking Points
      • James Dipping: Engineer Viewpoints
      • John Seigenthaler: Renewable Heating Design
      • Lowell Manalo: Plumbing Essentials
      • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
    • RADIANT COMFORT REPORT
    • THE GLITCH & THE FIX
  • INSIGHTS
    • CODES
    • GREEN PLUMBING & MECHANICAL
    • PROJECT PROFILES
    • COLUMNS
      • Codes Corner
      • Natalie Forster: Editorial Opinion
      • Guest Editorial
    • SPONSOR INSIGHTS
  • MEDIA
    • PODCASTS
    • VIDEOS
    • WEBINARS
  • RESOURCES
    • INDUSTRY CALENDAR
    • DIRECTORIES
    • EBOOKS
    • PM BOOKSTORE
    • CE CENTER
    • MARKET RESEARCH
    • CLASSIFIEDS
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • CONTACT
    • ADVERTISE
    • PME EMAGAZINE ARCHIVES
  • SIGN UP!
Columns

What Does $5 Get You?

By Al Levi
March 30, 2006
Attract the best techs by paying the best.



That's a trick question, because what I really meant to ask is, “What does raising your current selling price by $5 an hour get you?”

I ask new clients that question when I first visit. The reason I ask is because I already know from the conversation before my visit that their No. 1 and No. 2 biggest challenges are, “How do I recruit the right people?” and “How do I hang on to them once I get them here?”

These were the same big challenges I had to overcome at my own shop through the years. It got better when we learned to build our own techs from apprentices. But, I still needed seasoned techs from time to time, and I needed them to have the right attitude to fit our corporate culture.

The problem was we typically set the new tech's wages by asking him what he was making at his current job and either matching it or paying a little more. Nothing was based on demonstrated skill. It was based on my immediate need to fill the vacant technician job or face climbing into the truck myself.

Then, the other techs would get wind of what the new guy was getting paid and it became a game of “Let's Make a Deal.” Each tech and I had a tug-of-war going on when it came to raises. I hated the confrontation and it was no fun for the employee who was turned away without a raise.

As owners, we believed we needed to keep our techs' salaries as low as possible to squeeze out a decent profit. Fortunately for us, we moved away from this flawed thinking. And we began to think more about creating salary levels and basing pay raises on demonstrated objective skill levels. If the tech could do the work and do it the right way, he deserved more because he made us more money.

Without that change in our attitude, we'd still be wondering, “How do I recruit the right people?” and “How do I hang on to them once I get them here?” The new salary levels worked for them and for us as well.

But looking back, I realize we could have been more generous with their hourly salary levels. Here's what I mean:

1. Once we knew what our correct selling price had to be, what would it have meant to add $5 an hour to the price? If the customer was OK with the value I delivered at, say $150 an hour, you think they were going to care all that much if it we delivered the same value at $155 an hour?

If you've done your own break-even and arrived at what your true selling price needs to be, am I right when I say it's probably $150 an hour or higher? I'm betting that's the case if you've done the process the right way and you're providing things like healthcare, retirement plans and more. All the things that help you recruit the right people in the first place and then retain them.

Do you think your customers are going to care if you're selling price has to be $5 an hour more? Not likely! If your selling price is already a lot higher than $150 an hour, this becomes even more of a no-brainer.

2. What do I want the additional $5 an hour for? First, I want to raise the salary levels by $3 an hour. You want to become known as the place that attracts the best and pays the best.

If you paid just $3 more an hour, do you think you'll have a tough time recruiting more people than your competition?

What about the other $2 an hour? Patience, I'll get to that.

3. When a new recruit shows up, you can say, “We pay $3 an hour more because we expect more from you. We do things like wearing shoe covers and we put down the red carpets. We require you to fill out all the paperwork. And you need to stay neat and clean.”

Wouldn't it be nice to actually have some leverage to enforce the few company standards you do have?

If you're paying me, a tech, $3 an hour more and you've included healthcare and retirement benefits in your selling price, will I want to come home and tell my spouse I'm losing my job because I didn't want to wear shoe covers? Think of the money as golden handcuffs.

Now, if you have a good bonus and spiff plan designed the right way (to pay themselves bonuses and spiffs by selling ethically), you've just become the company of choice and the company that employees will want to stay with.

4. OK, here's what you're going to do with the extra $2 an hour. You're going to commit to always being in the recruiting business instead of waiting to recruit only when you're desperate. You'll finally be in a better position to make a good hire.

5. That extra $2 an hour will let you run a well-written, big ad that makes you stand out among all the ads so you get the calls you've been looking for.

Adding $2 an hour more to the selling price allows you to run the right ads in the right places with the right frequency. Think of “Help Wanted” ads as just another form of marketing. The difference is this marketing is geared toward techs rather than new customers.

Don't worry. Just because they're calling you doesn't mean you have to hire them. But, I'd recommend you keep their names and contact information for the future. You could actually be selective for a change. Now, wouldn't that be nice!

Links

  • Innovative Thinking: Hiring-Training-Retention
  • Radiant & Hydronics e-News
  • Appleseed Business

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

200x200 7power blog

Al Levi teaches contractors how to run their businesses with less stress and more success with operating manuals. To get control of your business and grow the right way, check out the "7-Power Contractor Signature Operating Manuals System," at 7powercontractor.com/manuals. Also check out Zoom Franchise Co. at zoomdrainfranchise.com. It’s a living example of the power of manuals and more in action.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Worker using the Milwaukee Tool SWITCH PACK drain cleaner

    Pipeline profits: Drain cleaning, pipe inspection create opportunities

    Drain cleaning and inspection services offer lucrative...
    Plumbing News
    By: Nicole Krawcke
  • Uponor employee, Arturo Moreno

    The reinvestment in American manufacturing and training

    Plumbing & Mechanical Chief Editor Nicole Krawcke and...
    Plumbing News
    By: Nicole Krawcke and Natalie Forster
  • March 2024 Women in Plumbing hero image of woman engineer overlayed by circle of hexagon shapes with numbers from 1 to 10

    Celebrating 10 Influential Women in the Plumbing Industry

    Celebrating Women's History Month and Women in...
    Plumbing News
    By: Nicole Krawcke
close

1 COMPLIMENTARY ARTICLE(S) LEFT

Loader

Already a Registered User? Sign in now.

Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine
  • Manage My Preferences

IPEX celebrates grand opening of new Florida distribution center

IPEX celebrates grand opening of new Florida distribution center

Bell & Gossett Illustrates Path to Net-zero at AHR Expo

Bell & Gossett Illustrates Path to Net-zero at AHR Expo

AI can boost efficiency and profitability for plumbing, HVAC contractors

AI can boost efficiency and profitability for plumbing, HVAC contractors

NIBCO Press Solutions

NIBCO Press Solutions

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Plumbing & Mechanical audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Plumbing & Mechanical or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • J.J. Keller CMV vehicles on road
    Sponsored byJ. J. Keller & Associates, Inc.

    The dash cam game-changer for small business safety

Popular Stories

The interior of a government building.

President Trump signs executive order promoting skilled trades and apprenticeships

Underfloor heating installation with drain sewer hole in bathroom close up on water floor heating.

Using hydronics to leverage time-of-use electrical rates

Watts Nexa mobile image

Behind the Wall: Where smart plumbing gets smarter

PMCE Home-X April 29 Free Webinar: From Legacy to Leadership: Preparing Your Home Services Business for the Next Generation

Events

November 13, 2024

Future Proofing MEP: Navigating the 2026 High Efficiency Water Heating Standards

Join our deep dive into DOE’s new standards so you can future-proof your MEP practice.

EARN: 0.1 ASPE CEU; 1 AIA LU/HSW; 0.1 IACET CEU*; 1 PDH

View All Submit An Event

Poll

Will business be up or down in 2025?

Do you anticipate business in 2025 to be up or down in comparison to 2024?
View Results Poll Archive

Products

The Water Came To A Stop

The Water Came To A Stop

See More Products

Download the FREE Water Conservation, Quality & Safety eBook: Plumbing Trends Increasing Safe Water Availability

Related Articles

  • Christoph Lohr

    Christoph Lohr: What does a good one-on-one meeting look like?

    See More
  • Ray Wohlfarth

    What can you do to affect the performance of your heating systems?

    See More
  • 01 PME 1023 CLMN David Dexter feature image

    Where does a sanitary plumbing system begin and end?

    See More
×

Keep your content unclogged with our newsletters!

Stay in the know on the latest plumbing & piping industry trends.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Supply House Times
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

search
cart
facebook instagram twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
    • BATH & KITCHEN PRO
    • BUSINESS MANAGEMENT
    • HIGH EFFICIENCY HOMES
    • TECHNOLOGY
    • WATER TREATMENT
    • PMC COLUMNS
      • Dave Yates: Contractor’s Corner
      • John Siegenthaler: Hydronics Workshop
      • Kenny Chapman: The Blue Collar Coach
      • Matt Michel: Service Plumbing Pros
      • Scott Secor: Heating Perceptions
  • ENGINEERS
    • CONTINUING EDUCATION
    • DECARBONIZATION | ELECTRIFICATION
    • FIRE PROTECTION
    • GEOTHERMAL | SOLAR THERMAL
    • PIPING | PLUMBING | PVF
    • PME COLUMNS
      • Christoph Lohr: Strategic Plumbing Insights
      • David Dexter: Plumbing Talking Points
      • James Dipping: Engineer Viewpoints
      • John Seigenthaler: Renewable Heating Design
      • Lowell Manalo: Plumbing Essentials
      • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
    • RADIANT COMFORT REPORT
    • THE GLITCH & THE FIX
  • INSIGHTS
    • CODES
    • GREEN PLUMBING & MECHANICAL
    • PROJECT PROFILES
    • COLUMNS
      • Codes Corner
      • Natalie Forster: Editorial Opinion
      • Guest Editorial
    • SPONSOR INSIGHTS
  • MEDIA
    • PODCASTS
    • VIDEOS
    • WEBINARS
  • RESOURCES
    • INDUSTRY CALENDAR
    • DIRECTORIES
    • EBOOKS
    • PM BOOKSTORE
    • CE CENTER
    • MARKET RESEARCH
    • CLASSIFIEDS
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • CONTACT
    • ADVERTISE
    • PME EMAGAZINE ARCHIVES
  • SIGN UP!