Why I Don't Upsell My Customers, And Why That's Better for Business

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TLDR: The plumbing industry has changed a lot in the last decade. Private equity and venture capital have moved into home services in a big way, and the business model that comes with that money creates real pressure to oversell. I built First Class Plumbing specifically around a different approach. Here is what I mean and why it matters when you call a plumber.

I'm Dan Pieper, owner of First Class Plumbing here in Maple Grove. I've been in the trade long enough to see the industry change — morph to upselling at all costs. And I bet you've seen it yourself. Let me paint a picture.

A tech shows up at your home. You've got an issue. Maybe a water heater, maybe a faucet. They diagnose your problem.

What you don't know is HOW they are trained to share a diagnosis. "The repair might cost $300. But if I can position the situation as requiring full replacement, the ticket jumps to $2,000 or more."

So you usually have the tech suggesting a replacement. And you have two options — you either agree with the assessment and say yes, or you're suffering through cold showers until someone else can come and give you a second opinion.

Oh, and you probably have to pay for BOTH these theoretical plumbing companies' time. Sound familiar?

Where the Pressure Comes From

When venture capital buys into a home services company, they set growth targets. Those targets require revenue. Revenue comes from higher average ticket sizes. Higher average ticket sizes come from upselling. It's a cycle.

Please hear me when I say that this is not a character indictment of every plumber at those companies. There are good people working there. But the system they operate inside has a different goal than yours when you call for help. Their goal is revenue per visit. Your goal is solving a problem for a fair price.

At a locally owned company, those two goals are more aligned. I do not have venture capital growth targets. I do not have a national franchise model to feed. My business grows because customers come back and refer other people. That only happens when the recommendation I give you is the right one, not the profitable one. You can read more about how we think about our work and our purpose on our about page.

What We Actually Do

When a First Class Plumbing tech shows up at your home, the approach is this. Diagnose what is actually wrong. Check the condition of the whole system, not just the part that failed. Present options at different price points. Explain what each one means and how long it will hold. Then let you decide.

I insist on this. Why? Not only are we locally owned, we value our neighbors. That's the standard we all employ.

And that's for every kind of customer. Some need a repair that buys them two years. Some want a solution that lasts twenty. Some are selling the house and want the minimum to pass inspection. All of those are legitimate answers and all of them get a straight recommendation. We are not engineering the conversation toward the highest-margin outcome.

We do love big jobs. A full tankless water heater installation, a bathroom rough-in, a whole-house repiping project — that work is satisfying and we do it well. But we do not manufacture urgency around jobs that do not need it. If your water heater has four good years left in it, I am going to tell you that. Read our post on whether to replace a water heater proactively or wait for failure for exactly how we think through that call.

Why This Is Actually Good Business

"Great, you don't upsell," you are probably thinking. "That's good for me, but you have to make up the margins somehow."

You are partially correct. But think of it this way.

We are in the business of helping others. Plumbing is a relationship business more than most trades. You call the same company when something goes wrong, you refer them to your neighbors, and you trust them when they tell you something needs attention. That trust is worth more over ten years than the margin on one oversold job.

The companies running the upsell model are betting that customers do not remember, do not compare notes, and do not leave reviews. That bet is getting harder to win. Reviews are public. People talk. And when someone feels like they got taken advantage of on a water heater call, they do not forget it. You can see what our customers say about us on our reviews page.

I would rather earn ten customers for life than squeeze extra margin out of one customer once. That is not an idealistic position. It is a business model. The Plumbing-Heating-Cooling Contractors Association has written extensively about how customer trust and long-term relationships drive sustainable growth in the trades — and the data backs it up.

And you have my word that we will be there for all of it. The same quality service no matter the size of the job or the size of the fix.

What to Ask Any Plumber Before They Start Work

If you are evaluating a plumber for a job, three questions will tell you a lot about how they operate.

First: will you show me the repair option and the replacement option with pricing on both before you start? A plumber who goes straight to replacement without offering a repair estimate is not giving you the full picture. Our article on what to expect during a professional plumbing home inspection covers what a thorough diagnostic actually looks like.

Second: how long do you expect this repair to hold? An honest answer to that question is worth more than any guarantee. If the repair is a bandage on a ten-year-old failing unit, a good plumber tells you that.

Third: what happens if the repair does not hold? What is the warranty on the work? A specific answer — one year, parts and labor — means something. A vague satisfaction guarantee does not.

Those three questions separate a transparent guide from someone who is just trying to close a ticket.

Thanks for reading,

Dan

Contact First Class Plumbing or visit our services page to see how we work. We serve Maple Grove, Plymouth, Brooklyn Park, and the Northwest Twin Cities metro.