Charlie Mullins on why Pimlico Plumbers is a transparent company [Video]
The successful entrepreneur explains how a simple pricing system solved the company's cashflow woes
Speaking to Startups in this video, Pimlico Plumbers founder Charlie Mullins explains how a focus on the domestic customer and a transparent, easy-to-understand fee structure solved the business’ cashflow woes once and for all.
As a trade business, Mullins explains that working with “third parties” – in other words, business customers – is a sure-fire way to run into cashflow problems. “It’s going to give you a cashflow situation where they’re not paying you on time,” Mullins says. “They can’t find the chequebook, they can’t organise this, they can’t organise that – you are giving them a first-class service but they’re not keeping their part of the bargain.”
The successful entrepreneur explains that a focus on domestic clients and a “very simple” pricing system has fixed this issue. “We’re a very transparent company,” Mullins explains. “We tell people their charges and what they’re going to get for their money – and we also tell them that when we finish it, we would like to be paid.”
Indeed, this transparent pricing system has not only led to “no issues at all” with cashflow, but a huge amount of new business as well. The Pimlico Plumbers website has a webpage that lists all the charges customers will pay for different kinds of jobs, which Mullins believes has been crucial in differentiating the fast-growing trades business from its competition. “That page on the website gets more hits than anything else apart from our homepage,” he says. “When a customer rings up, they already know what we’re about – so we just turn up, do the right job, and everybody’s happy with the agreement.”