Hey guys, Tony from Profitable Tradie. I want to talk about hiring today and one of the key reasons why you might actually be struggling to hire.
So are you like a lot of Plumbers and Electricians out there who are desperate to hire some good tradespeople but you are just finding it hard to get the right people?
Well I am going to start with a story actually, it’s about the property market and an experience that my wife Bronwyn and I have had over the last, sort of, 12-18 months.
Now we have been looking for a new house, we have got three young boys, we need some more space and we have tried to buy three or four times and each time we just haven’t been paying enough, we’ve missed out and the prices that have been paid, have been quite a lot more than we thought we needed to pay.
Now, the same thing’s happening in the market for tradespeople, for qualified Plumbers and Electricians. What you used to pay just doesn’t cut it anymore and if you are thinking about hiring and you’re not getting any bites, well you probably need to look at what you’re offering; because the market is competitive and you really need to be paying top dollar to get the right people.
And here is the other thing to think about, I know it is scary to pay more, but if you get a tradesperson how much extra money are they actually going to make you? Now the potential is, if your margins are where they should be, you could get $80-100K worth of gross profit out of each tradesperson.
Now if you need to pay $4-5k more to get to them does it make sense? Well of course it does, you’re still going to be up, you’re still going to be ahead of the game, even though you’re paying a bit more.
And the other side of the coin is, because there’s a lot of demand out there for services, it’s time for us to actually increase our rates, get our margins up as well so we can take our cut and pass it on to our team members as well.
So guys lesson for today and my thought is this, look, the industry is booming in most parts, there is a lot of demand for tradespeople and what you need to pay has really moved on; so if you are not getting the results you want, look at what you’re offering and super-size it! And then we’re going to make sure we pass it on through our clients.
Hope this is helpful guys, happy hiring and I look forward to talking to you again next time.