Owned and Operated - Episode #229: "Plumber Closes +$10M/Year (With Just One Trade)"

Release Date: July 31, 2025

In this compelling episode of "Owned and Operated," host John Wilson sits down with Kelson Carter, a third-generation plumber who has successfully scaled his plumbing business to over $10 million in annual revenue by focusing solely on plumbing services. Their in-depth conversation uncovers key strategies, insights, and lessons learned in growing a home service business with precision and focus.

1. The Pitfall of Multi-Trade Expansion

Kelson begins by addressing a common mistake in the home service industry: diluting focus by adding multiple trades.

Kelson Carter [00:00]: "With $3 million, companies are like, oh, I'm doing 3 million. I'm gonna add HVAC, I'm add electrical. Then they're not making any money. They have no idea what they're doing. They have no focus."

Kelson emphasizes that many businesses falter when they stray from their core competency, leading to financial instability and operational inefficiencies.

2. Achieving Monumental Growth Through Specialization

Kelson shares his company’s impressive milestone of reaching $11 million solely through plumbing.

John [00:09]: "11 million just plumbing dig. Like, how can somebody else follow that?"

Kelson attributes this success to strategic focus and disciplined investment in sales, which allowed his business to thrive without the distractions of managing multiple trades.

3. The Critical Role of Sales in Scaling

A significant turning point for Kelson's business was the integration of a dedicated sales team.

Kelson Carter [00:13]: "The biggest game changer for us was we brought in sales this year. He's gonna do close to 3 million. Just strictly plumbing sales, not excavation, nothing."

By hiring a skilled salesperson, Kelson was able to convert leads more effectively, driving substantial revenue increases. This strategic investment underscores the importance of having a strong sales team to scale operations efficiently.

4. Transitioning from Time and Material to Flat Rate

Kelson recounts the pivotal decision to switch from a time and material model to a flat rate pricing structure, a move that stabilized his business financially.

Kelson Carter [07:48]: "He joined Contractors 2000 back in the mid-90s... decided to go all service... kept six and decided from this point forward, I just want to own a profitable company."

This transition not only improved profitability but also enhanced customer satisfaction by providing clear and predictable pricing.

5. Building a Robust and Loyal Team

Kelson highlights the significance of team stability and retention in sustaining business growth.

Kelson Carter [14:15]: "We have approximately 50 employees... have gotten to the size now where people aren't leaving as much."

Maintaining a loyal and skilled workforce has been integral to Kelson's ability to manage and execute on high-ticket plumbing projects consistently.

6. Optimizing Operational Efficiency and Inventory Management

Effective inventory management is a cornerstone of Kelson’s operational success.

Kelson Carter [17:33]: "We keep on hand enough to stock six trucks at any time."

By maintaining a strategic inventory level, Kelson ensures that his team can handle high volumes of work without unnecessary delays, thereby maximizing efficiency and customer satisfaction.

7. Leveraging Marketing and Lead Generation

Kelson underscores the importance of sophisticated marketing strategies over basic lead generation methods like Craigslist or Facebook.

Kelson Carter [18:49]: "A lot of people don't know how to spend the money. They think running Craigslist leads and Facebook leads is going to grow your business."

Instead, his approach involves targeted marketing campaigns and effective lead management, which have been instrumental in driving high-quality leads that convert into lucrative projects.

8. Maximizing Profitability in Drain Services

While plumbing remains the core, Kelson discusses the profitability and challenges associated with expanding into drain services.

John [27:04]: "It's a beautiful business. It is like, we are... drain department is 3.5 million."

Despite its high margins, scaling the drain service sector requires careful planning and strategic marketing, mirroring the success seen in his plumbing division.

9. Advice for Aspiring Plumbers and Business Owners

Kelson imparts valuable wisdom to those looking to enter or grow within the plumbing industry.

Kelson Carter [44:47]: "It's always too soon to quit. Starting a company from scratch... picking a good team is very hard."

He emphasizes perseverance, the importance of a strong team, and maintaining focus on core services as essential elements for building a successful and sustainable business.

10. Future Vision and Growth Strategies

Looking ahead, Kelson outlines his ambition to grow his business to over $20 million in the next decade by continuing to focus on plumbing and enhancing marketing efforts rather than diversifying into multiple trades.

Kelson Carter [43:59]: "10-year vision would be 20 million plus... having more trucks on the road helps out better."

He plans to capitalize on his strong market presence and scalable business model to achieve sustained growth without compromising profitability.

Conclusion

Kelson Carter's journey from a family-operated plumbing business to a thriving $11 million enterprise exemplifies the power of focus, strategic sales investment, and disciplined operational management. His insights provide a roadmap for other home service business owners aiming to achieve similar success by prioritizing specialization, building a loyal team, and implementing effective marketing strategies.

For more insights and actionable advice on growing your plumbing, electrical, or HVAC business, visit www.ownedandoperated.com.

Notable Quotes:

• Kelson Carter [00:00]: "With $3 million, companies are like, oh, I'm doing 3 million. I'm gonna add HVAC, I'm add electrical. Then they're not making any money. They have no idea what they're doing. They have no focus."

• John [00:09]: "11 million just plumbing dig. Like, how can somebody else follow that?"

• Kelson Carter [07:48]: "He joined Contractors 2000 back in the mid-90s... decided to go all service... kept six and decided from this point forward, I just want to own a profitable company."

• Kelson Carter [18:49]: "A lot of people don't know how to spend the money. They think running Craigslist leads and Facebook leads is going to grow your business."

• Kelson Carter [44:47]: "It's always too soon to quit. Starting a company from scratch... picking a good team is very hard."

• Kelson Carter [43:59]: "10-year vision would be 20 million plus... having more trucks on the road helps out better."

This episode is a must-listen for anyone in the plumbing or home services industry looking to scale their business effectively and profitably by maintaining focus and leveraging strategic sales and marketing practices.