Transcript
Baker Plbg: Okay, it's been a hot minute since I've... Don't want done a little thing here on the old podcast, the boiler room. Let's finish my workout. um I want to talk about longevity. I did it was reading some articles over the weekend.
Baker Plbg: And. Apparently, the lifespan of successful companies is shrinking fast. In 1958, Um, A company on the S and &P 500 stayed in business for an average of 61 years. Today, that average is less than 8. years.
Baker Plbg: Um, And so a couple of the key factors for longevity. He has customer loyalty, expertise, and better talent. Um, You want to improve your business longevity?
Baker Plbg: You need to stay adaptable. You need to keep financial control and you need to deliver real value. it's a It's an interesting thing as I look back at my own.
Baker Plbg: 30 years. of running Baker plumbing um And there has absolutely been ups and downs and sideways. But that was those last three stay adaptable.
Baker Plbg: uh, keep financial control and deliver real value have been absolutely paramount in The success that. that I have seen in my life. um You know, we I started with... ah We ran.
Baker Plbg: Um, Heating systems and black iron. I remember threading nipples. For hours. i did a cup We used to run, which I guess I still do.
Baker Plbg: Water lines and copper. Um, We did. The whole house was done in copper pipe and solder. We originally it was just 50 50.
Baker Plbg: and now and that when i I remember when they came out with 95 .5. and then you know polly b showed up which was going to be the savior of this whole thing uh, Kitech showed up, was going to be the savior. I installed so much of that stuff.
Baker Plbg: And now it's all, you know, PAX A and PAX B, PAX C. And I guess we'll find out. i mike Kids will find out what the actual longevity of that those plumbing systems actually are.
Baker Plbg: I am deeply concerned about our about our heating industry. I'm not going to pick on any names today, but you know we've installed... hundreds of Navians and Rinnais over the last three years.
Baker Plbg: And so far their durability. He's a little suspect. Um, I just threw out. 15 Renise.
Baker Plbg: And eight. Navians. They're going to the dump. so And those... Those. engines.
Baker Plbg: replaced Um, you know either hot water tanks or boiler systems. The hot water tanks are always suspect, but we would get anywhere from eight. to 12 years out of a hot water tank and the boiler systems like some of the boiler systems that were that we're replacing have been operating for 20 or 30 years now.
Baker Plbg: And so the technology has come a long way. And I do think it's part of that disposable. um Uh... mantra of Make it, make it.
Baker Plbg: quick, make it cheap. and make it replaceable. And that is exactly the... uh match or that our customer base is is looking for is we'll install between you know eight and in 12 of these Tankless.
Baker Plbg: a Boilers. And they want the redundancy. So if a a one of the system, one of the boilers goes down, we can pull it out. Put it in. Nobody knows. nobody's ah Certainly from a clientele basis, a guest basis in the hospitality industry.
Baker Plbg: Nobody's aware. So I get why they're doing it. And they are. i mean frankly they're cheap models so i you know i can't be too hard on those manufacturers. you know if you can buy something for less than a couple of grand and install it. and it'll work for if you take care of it it'll it'll so last solidly three to four years
Baker Plbg: It is interesting that the industry now has moved to an hourly runtime model. And so they don't. They don't go by.
Baker Plbg: Cool. like dates anymore if you install this thing in january of 2026 And you put on. He knows. Uh... 25 ,000 hours. Your warranty is pooched.
Baker Plbg: Which is what's happened with. uh the ones that we've replaced and To be fair, both Renai and Navien have been very... gracious in their warranty and have given us new products when we need them.
Baker Plbg: and helped us out when we needed that stuff to be. you know to keep our customers happy how long that's going to be enforced for is anybody's guess. Anyway. ah It is almost 8 o 'clock here.
Baker Plbg: and Not quite. Um. And the Monday morning meeting is going to kick off. Um, I do think it's important.
Baker Plbg: One of the biggest keys is to uh The... I mean, they're all three are important. um You've got to have you got to be able to stay adaptable.
Baker Plbg: oh my gosh Calls are coming in already. Well, the party never ends. That's the Monday morning we've got an emergency. um
Baker Plbg: So. That's one of the things Deliver real value. that that I think that is... ah The Secret.
Baker Plbg: I think with what we see with lots of these companies out there is they are trying to deliver. perceived value. in their systems or whatever they're trying to you know whatever they're trying to do Um,
Baker Plbg: like AI AI is trying to solve a problem I don't think needs to be solved.
Baker Plbg: particularly when it comes to call center stuff. um i I don't know how you beat. uh the human the human experience. I don't think you do. Anyway, there's a lot going on there. So just as as as a summary.
Baker Plbg: you know, If you're going to be... If you're thinking of running a company. And. And it is a difficult thing. Not to toot my own horn, but... Two.
Baker Plbg: uh have some longevity. to and to stay on task for that. length of time. but you need customer loyalty. You need to be an expert in your field.
Baker Plbg: You need to be a talented individual. You need to stay adaptable. You need to understand and pursue new technologies. You need to keep financial control. I think that's the big problem with...
Baker Plbg: the private equity is that you lose the financial control. You lose the ability you to make the decisions. to uh navigate your way through this world. And you've got to deliver.
Baker Plbg: real value in real time, which I'm about to do. Right now. Those are my thoughts, not yours. Everybody have a blessed Monday. Good luck out there.
