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Home Service Expert

Scaling Your Plumbing Business The Right Way with Richard Behney and Tommy Mello

πŸ“… February 26, 2020 ⏱️ 58:35 🎀 Richard Behney, Tommy Mello

Chapters

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  • 0:37
    Intro & welcome Richard Behney
  • 1:43
    Richard's path: falling into plumbing & the entrepreneurial bug
  • 3:20
    Biggest hardships: owning your job & getting a mentor
  • 6:36
    Service agreements & financing across the trades
  • 7:42
    Selling Attaboy & what buyers look for (brand + systems)
  • 12:00
    Getting your ego out so the business runs without you
  • 16:56
    'Why would anyone want to work for you?' the plumber shortage
  • 17:29
    Piece rate vs. commission for technicians
  • 24:02
    Pay-for-performance KPIs for CSRs
  • 28:26
    Diagnose the person first; serving, not selling
  • 31:09
    Why plumbers can't break seven figures: belief
  • 37:05
    Marketing, leads & customers pay for your marketing
  • 39:16
    Pay yourself a salary β€” it's not profit
  • 40:53
    Facebook & community marketing done right
  • 44:42
    Accountability, compliance & trust but verify
  • 50:06
    Residential service is a goldmine & the Amazon/Google shift
  • 53:27
    Book recommendations & final thoughts

Speakers

R
Richard Behney
Founder, The Million Dollar Plumber & Potty Talk Live; former President & CEO, Attaboy Plumbing
T
Tommy Mello
Host; Founder & CEO, A1 Garage Door Service

Key Takeaways

✦

Most tradespeople are great plumbers but not businessmen β€” without pricing knowledge or systems you just 'own your job' and struggle; the turning point for Richard was getting a business mentor, and admitting you need help is wisdom and strength, not weakness.

✦

Buyers of home-service companies want two things: a recognizable, emotional brand in the market and proven systems (service agreements, financing, a CRM like ServiceTitan) β€” and the real test of good systems is whether the business runs fine for a month without the owner ever checking in.

✦

Get your ego out of the business: Richard built Attaboy so that nobody even knew who he was and the company didn't need him, which is exactly what made it valuable and sellable rather than a key-man liability.

✦

'Why would anyone want to work for you?' is the real question behind the plumber shortage β€” there are plenty of good techs; you need a process to attract and retain them instead of blaming the labor market.

✦

Piece rate (a form of commission tied to a price book) is the fairest, simplest pay model β€” it gives techs control and understanding, gets the owner out of babysitting, and the mistake owners make is constantly tinkering with the percentages and losing their people's trust.

✦

Tommy's KPI-based CSR pay stacks small incentives (on-time, no errors, shift differential, call-quality score, plus $5 for a 90%+ booking rate) so the same call can pay up to ~$9 β€” rewarding the right behavior lets the cream rise and top performers earn far more than an hourly wage.

✦

Diagnose the person before the problem, then let a simple 25-point safety inspection do the selling β€” when you show the customer what failed and let them choose, 'you don't have to sell, just excel at serving the customer,' and it sells itself.

✦

The real barrier to breaking seven figures is belief β€” many owners subconsciously feel they aren't worth a million dollars or that customers don't need the better option, so they build a low-margin 'broke-fix' business that can never become profitable.

✦

Not offering options makes you a 'hack' β€” it's not the technician's right to decide what a customer can afford; give genuine options (like Tommy's garage-door cycle-life explanation) and let the customer decide what quality of life they want, keeping the old parts to prove your honesty.

✦

Your customers pay for your marketing, so build advertising into your price, and always pay yourself a real salary as a separate line item β€” the owner's pay is a cost, not profit, and forgetting this wrecks both cash flow and the eventual sale valuation.

✦

Use Facebook and community involvement to build brand and authority (spotlight local businesses, share before/afters and third-party customer praise) rather than posting drain gunk β€” and prepare now for the commoditization of the trades via Amazon Home Services and Google Guaranteed, because verified reviews and on-time tracking are changing the game.

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