f you’re a plumbing, HVAC, or drain cleaning contractor working nonstop but still barely making money, this episode will hit close to home.
Dennis sits down with Kimberly Keane, former co-owner of a $12M plumbing & heating company, to break down the 3 numbers that decide whether your business is profitable or quietly bleeding cash.
This isn’t about getting more jobs.
It’s about fixing the math that’s keeping you stuck in payroll-to-payroll survival mode.
In this episode, you’ll learn:
The exact percentages your labor, materials, and gross margin must hit
Why more volume can actually put you out of business faster
How underpricing destroys your ability to hire good technicians
The mindset shift that allowed Kimberly to build — and sell — a multi-million-dollar trade business
Why most contractors feel busy but still feel broke
If you’re tired of working for free and want to build a financially sound trades business, this conversation is for you.
Guest: Kimberly Kean
Host: Dennis Hamon
Event: PHCC Connect 2025
Timestamps:
00:00 – Why contractors stay broke despite nonstop work
00:18 – The 3 numbers that decide profitability
00:56 – Cost of Goods Sold: Labor (and why 20% matters)
04:35 – What labor actually counts as COGS
06:57 – Why high labor % kills profit
07:27 – How discounting jobs quietly destroys your business
09:00 – The bid sheet system that fixed cash flow
10:20 – Why winning cheap jobs is a trap
13:09 – Cost of Goods Sold: Materials (plumbing vs HVAC vs drain)
14:32 – Gross margin explained simply
15:20 – Why 60% gross margin is non-negotiable
17:40 – The 40 / 40 / 20 rule for healthy companies
18:45 – The real role of selling price
20:01 – Why underpricing attracts low-quality technicians
23:25 – Why more jobs won’t save a broken business
24:13 – How growth can make you fail faster
26:26 – When a business becomes scalable
28:20 – How to get help and coaching
31:23 – Final advice for contractors stuck in survival mode
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The Podcast that helps plumbing and heating service contractors stop working for free and actually turn a profit.
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