How to Use ChatGPT to Improve Profit Margins in Your Plumbing Business

If your plumbing business is growing but your profit margins are not keeping pace, you are not alone. Many owner-operators find themselves working harder without seeing the financial results they had hoped for. The good news is that you do not need to use complex technology or expensive software to make smarter decisions. With the free version of ChatGPT, you can turn strategic advice into practical, day-to-day actions that help to improve your bottom line.

I’m Ashley Thomson, a plumbing business coach at Tenfold Business Coaching. I work with established trade businesses across Australia to help them grow sustainably and profitably. With over 20 years of experience coaching plumbing contractors, I have seen what works and what doesn’t when it comes to improving profit margins and building a business that operates smoothly. My approach is grounded in first principles thinking and is supported by real-world results. If you are serious about growing your plumbing business, I will show you how to use ChatGPT as a smart tool to support your goals.

Let us now examine the main advice areas from my original article and consider how ChatGPT can assist you in putting each one into practice.

Know Your Numbers; Really Know Them

Understanding your financials is the foundation of profitability. If you are not across your job costing, labour efficiency and overheads, you are flying blind. ChatGPT can help you clarify and organise your numbers. You can use it to create templates for tracking gross profit per job, estimate labour costs, or even draft weekly review checklists. This way, you can stay on top of your business finances and make informed decisions that drive your business forward.

Example Prompts

• “Help me create a simple spreadsheet layout to track gross profit per plumbing job.”
• “Explain how to calculate labour efficiency for a plumbing business.”
• “Write a checklist for reviewing job profitability each week.”

Why it Matters

When you understand your financial figures, you can confidently provide quotes, identify potential problems early on, and make well-informed decisions. ChatGPT assists you in staying on top of your data without the need for an accounting degree.

Price for Profit, Not Just to Win the Job

Many plumbing businesses in Australia tend to set their prices to match those of their competitors. However, they often do so without knowing whether those competitors are actually making a profit from their pricing strategies. It is important that your pricing reflects the value you provide to your customers and includes the profit margins you need to stay sustainable. Using ChatGPT, you can develop comprehensive pricing models, experiment with different markup scenarios, and create clear scripts to effectively communicate the value you offer to your clients.

Example Prompts

• “Create a pricing model for plumbing jobs that includes overheads and a 20% profit margin.”
• “What’s a good way to explain to customers why my prices are higher than competitors?”
• “Help me write a quote template that highlights value over price.”

Why it Matters

Pricing strategically helps to safeguard your profit margins and positions your business as a provider of high-quality products or services. ChatGPT assists you in clearly articulating your value proposition and developing pricing structures that encourage business growth, ensuring you remain competitive in the Australian market.

Streamline Operations to Reduce Waste

Profit leaks frequently originate from poor scheduling, miscommunication, or inefficient workflows. Even small improvements can lead to significant gains. You can use ChatGPT to map out your processes, pinpoint bottlenecks, and draft standard operating procedures, or SOPs, for your team.

Example Prompts

• “Write a simple SOP for scheduling plumbing jobs to minimise travel time.”
• “How can I improve communication between office staff and plumbers onsite?”
• “List common operational inefficiencies in plumbing businesses and how to fix them.”

Why it Matters

Streamlined operations lead to fewer delays, less rework and more efficient use of your team’s time. Using ChatGPT allows you to document and improve your systems without the need to hire a full-time operations manager.

Build a High-Performing Team

Your team can either drive profits or drain them. The key is setting clear expectations, monitoring performance and rewarding results. ChatGPT can also assist you in preparing detailed job descriptions, performance review templates, and training plans that are specifically tailored to meet the needs of your Australian business environment.

Example Prompts

• “Write a job description for a plumbing apprentice focused on productivity and teamwork.”
• “Create a performance review template for plumbers based on job completion and customer feedback.”
• “Help me design a training plan for improving communication and onsite efficiency.”

Why it Matters

A strong team consistently delivers excellent results and actively supports your growth and development. ChatGPT assists you in leading with clear and confident communication, helping to foster a culture of responsibility and continuous improvement.

Say No to the Wrong Work

Not all revenue is good revenue. Jobs that have low profit margins or are high in hassle can tie up your most valuable resources and negatively impact your overall profitability. Use ChatGPT to help define your ideal job profile, to write scripts for politely declining work that isn’t suitable, and to build your confidence in making these important decisions.

Example Prompts

• “Describe the ideal plumbing job profile for a business focused on high-margin work.”
• “Write a polite email for declining a job that doesn’t meet our criteria.”
• “How can I explain to my team why we’re saying no to certain jobs?”

Why it Matters

Focusing on the right work increases your available capacity and enhances profit margins. ChatGPT assists you in staying aligned with your goals and communicating your strategy in a clear and effective manner.

Plan for Growth, Not Just Survival

Improving profit margins is not just about reducing costs; it is also about developing a business that has the capacity to grow and expand. This involves having the appropriate systems, staff, and strategic planning in place. ChatGPT can assist you in outlining your growth strategy, working backwards from your goals to determine the necessary steps, and creating actionable plans for each phase of development.

Example Prompts

• “Help me create a growth plan for my plumbing business to reach $2M in revenue.”
• “Break down the steps needed to expand from one team to three teams.”
• “Write a monthly action plan for improving profitability and preparing for growth.”

Why it Matters

Growth without a clear and well-defined strategy often leads to chaos and disorder. ChatGPT assists you in thinking ahead, planning wisely, and taking consistent, deliberate actions toward achieving your goals. It helps you stay on track and build a steady path toward success.

Final Thoughts from Your Plumbing Business Coach

ChatGPT is not a magic wand, but it is a powerful tool when used wisely. As a plumbing business coach here in Australia, I have seen firsthand how small, consistent improvements can lead to significant results. By using ChatGPT to turn your strategy into practical actions, you can make smarter decisions, stay focused on your goals, and build a business that is both profitable and sustainable for the long term.

If you are ready to grow your plumbing business and improve your profit margins, start by using ChatGPT to support your daily tasks and responsibilities. And if you would like expert guidance tailored specifically to your business needs, feel free to get in touch. I would be more than happy to assist you in taking the next step forward.