The True Cost of Mistakes in Your Trade Business

Andy
We’ve all been there, spinning our wheels, putting out fires and wondering why things just aren’t improving. But here’s the thing. If you’re serious about making 2025 different, it starts with facing one hard truth. Those mistakes, big or small, are costing you more than just money. They’re draining your time, energy, and passion for the business.

Ange
That’s why today we’re tackling the true cost of mistakes in your trade business. Because whether it’s a 60k disaster that you’ll never forget. All those tiny daily errors that fly under the radar, they’re all holding you back. 

Andy
And this year we’re saying enough is enough. If you’re ready to stop making those same mistakes and start building a business that works for you, stick with us. We’re deep diving into real life stories, practical tips and the steps you need to take to make 2025 your breakthrough year. 

Ange
This is an episode you don’t want to miss. 

Andy
Let’s go!  You’re listening to The Tradie Show. This is the podcast for trade business and contracting bosses like you who want to lead with confidence, make more profit, and create a better lifestyle.

Ange
We’re your hosts, Andy and Angela Smith, husband & wife team and co-founders of Lifestyle Tradie. Are you ready to have some fun?

Andy
Hell yeah!  I’m Andy Smith and I’ve run my own plumbing business for over 20  years. And for the past 16 years, I’ve been helping trade business owners all around Australia and New Zealand make their business more profitable and stress free. If you want to grow, be profitable, go on a holiday without the phone stuck to your head, then you’ve got to stop wearing all the hats all the time. This is exactly what I do, along with my wife by my side, Angela and our team of experts at Lifestyle Tradie. You learned how to be great on the tools through your apprenticeship. Now it’s time to learn how to be a great business owner. All the most successful people on the planet have a coach. So come and learn more about the Lifestyle Tradie business coaching program. And let’s make 2025  your best year yet. In February, we’re hosting a free business training event called Stress Free Tradie. At this live one day event, we’ll teach you how to triple your trade business profits in 12 months without the headaches. It’s real, eye opening, practical advice from tradies that know where you are and are ready to help you win. Seats are limited and tickets are free, so grab your spot now. All right, it’s time to kick things off with some hell yeah wins from our amazing members at Lifestyle Tradie. 

Hell yeah!  These are legends who have been smashing it in their business, proving that small changes can lead to massive results. Ange, what have we got this week?

Ange
All right. We’ve got some fantastic wins to share, Andy. First off is a big shout out to Adam, who is an air conditioning company in the Hunter Valley, who wrote. We managed to crack a hundred K month turnover. 

Andy
Hell yeah, that is awesome. It’s always a big one. And I think this hundred K month is a milestone for most trade businesses. You know, everyone wants to be over that million dollars. They want to crack over a hundred K a month. But it’s been great watching him grow and put all these things in place. Now, yes, we’re coming into the hottest time of year, so I’m assuming those hundred K months are going to be turning into 120 and 150 very, very soon. So who’s next Ange? 

Ange
So next up, this one’s awesome. Ashley works with a roofing company with her husband in Adelaide and she writes. I left my corporate career after 11 years and have officially stepped into our trade business as of today.

Andy
Yeah, that is a great hell yeah! Well done, Ashley and Jamie. You guys are superstars and what you’ve done in the last few years has been so inspiring. I know Ashley, Jamie’s absolutely pumped to have you a part of the team and you’re going to bring so much to your business as well. Good times. And who else we got there, Ange?

Ange
So Sue Anne, who works with her husband in a pest control company in Queensland, writes – We got our online self service booking system live and we’ve already had our first booking through it. 

Andy
Hell yeah! Yeah, these are the things that are great and I know a lot of our members are using this. Um, they’re using ServiceM8, I believe, and getting this system up and going. For certain businesses, I don’t think it suits every trade business out there, but for certain businesses, it’s certainly a way to go and it can make life a hell of a lot easier. 

Ange
And the last one for today is Dion. He owns a double glazed windows company in Adelaide and he writes, I sent out a spear email, a process you guys taught me to previous customers who hadn’t Google reviewed them yet and received five five star reviews in three days. That’s awesome.

Andy
Yeah, that is good. Hell yeah, buddy. And that’s what we’re all talking about here. It’s about helping tradies like you take control, make changes and see the winds rolling in and these hell years are flooding our Facebook feed at the moment with our Lifestyle Tradie members. Some are small and some are big. But you’ve got to have wins and you’ve got to celebrate these wins because this is what you need to do to keep you motivated, pumped up and inspired to make sure that next day you’re going to be bigger and better and just keep driving.  

All right, let’s get into it. The true cost of mistakes. We’re not just talking about those 60K errors, all those massive $400, 000 disasters that can completely knock you for six. Today, we’re also shining a light on the small everyday mistakes. The ones you might not even notice that are quietly draining your bank account. And in some cases, sabotaging your business without you even realizing it. 

Ange
Yeah, exactly. Big mistakes grab your attention because they’re so painful and you’ll never forget them. But the smaller repeated mistakes, those are the ones that quietly add up year after year and cause real damage. And the worst part, most of us don’t even realize they’re happening until it’s too late. 

Andy
Speaking of big mistakes, let me share one of the ones we made at Dr. Drip back in the day. And this is a great lesson how one single mistake can teach you a lesson you will never forget. So imagine this, we’ve got a 20 storey unit block, we’ve got a collapsed sewer line, and we go out there and we put a quote in, we needed to replace this sewer. Now we let everyone in the residence know, the strata had sent them all an email and a letter, we’d put notices on the notice boards. That no one could use the sewer today. So anyway, we get stuck in, the guys cut the line, pull the pipe out and the sewer’s just flowing, the guys are cracking at getting the shits with it all. So they get a plug, they put the plug up in the pipe to stop the water coming out. And then bang, there was enough pressure that it popped the plug out and shit went everywhere. 

Ange
What a shocker. 

Andy
The guys were pretty smart though. They put the plug back in and got a bit of 4V2 and jammed it down to make sure that plug was never gonna move again. Fast forward to the end of the day and they’re doing their very, very last connection and they put the plug drain hole. I think most people know there’s a little drain hole there and it was taking forever to drain out. They couldn’t believe how much water was in this line. They pulled the bit of 4v2 out and bang, the sewer went everywhere again. They waited for it to soak up in the ground and they connected the pipe and they moved on. The problem with this was, guess what? 

Ange
What? 

Andy
People in the unit block had been using washing machines, baths, showers, toilets all day. And there was no overflow or gully on this line going up a stack line, and the bottom two units were completely full of sewer and water. It cost around about 60k to rip up flooring, fix it all up, but it wasn’t the 60k of damage that was the biggest problem, it was  everything that went with it. We lost a strata manager that we’re doing around 250K a year. We got hammered by online reviews. Everyone in the unit was blowing up and you know what, having a unit and it stunk like shit, it was terrible. So I understand it. But this is when we realized that this as a company was never ever going to happen to us again. Not only did the boys not want to get wet feet, we didn’t want this happening. So we brought in a new rule that whenever we were cutting the sewer, especially on a main line, we were going to turn the water off to the whole block. So that was a rule that stopped that problem from ever happening again. Now we all know there’s still some water in the toilet systems of each system, but they couldn’t use washing machines, showers and all of that kind of stuff as well. And that just stopped this in regards to flooding units ever again. We did not want that problem to happen again. 

Ange
Yeah. I’d say not just us as owners, but the entire team learned from that experience. Hey, that was such a shocker, but we’ve actually heard some real shockers also from the tradies over the years. Now, without naming names, Andy, but do you remember the story about the 100 grand painting?

Andy
Yeah, this is one I’ll never forget. Um, it was an electrician. He got his drill out. He drilled through a wall and on the other side of the wall was a hundred grand painting and he went straight through the middle of it. I am gobsmacked that someone wouldn’t go around the door and see what was on the other side, but there you go.

Ange
Well, there’s no fixing that one, right? 

Andy
No, there’s none at all. Or the guy who flipped the wrong circuit breaker and took out an entire TV station, off the air in Adelaide. I mean, you got to laugh eventually, but at the time, what about absolute chaos?

Ange
Well, the thing is everyone really does make mistakes, right? It’s a part of life and it’s a part of business, but some are unforgettable like these. And because they’re so big and expensive. They force you to set a process and a system for the whole team so that you never repeat the same mistake ever again.

Andy
But the real danger lies in these smaller, repetitive mistakes. You know, those ones where you’re not screaming of these hundred thousand dollar disasters. They are quietly chipping away at your profit, your time, and also, your sanity. 

Ange
Ooh, exactly. Those are the mistakes that don’t make headlines, but they quietly add up and hold you back. And that’s why it’s important to have systems in place to catch them before they cost you more time, money, and stress. 

Andy
Think about it. When you or your team make a small mistake, it doesn’t seem like much at the time, but maybe it even could be a tradie running to the supplier every single day or missed inspections, which could lead to a lot of work or also having problems with people having callbacks. You know, when these little errors happen over and over, guess what? They stack up big time. 

Ange
Yeah, it’s not the big ones that bankrupt you. It’s the small daily mistakes that lead your business dry over time. 

Andy
But the big disasters like the sewer story I just talked about are unforgettable. And everyone always talks about that, but it’s the small everyday errors that sneak under the radar and silently drain your business of your funds. Let me give you another example from the Dr. Drip days all around our stock control problem that we had. 

Ange
Oh, I like this one. This is a classic. It wasn’t flashy or dramatic, but it actually added up to a huge loss over time. Didn’t it, Andy? 

Andy
Yeah, absolutely. And back in the day, we had one guy on our team and oh my God, he had to go to the supplier every single day. Like I’m talking every single day, his stock control and his van was an absolute joke. He’d leave the job site, he’d sit in Sydney traffic to get to the closest supplier, he’d have a social chat with the staff, he’d smash a couple of meat pies, and then finally head back to the job with the materials that should have been in his truck in the first place. You know, on paper it just looked like a quick run to get what we needed, but when you really broke it down, it was a massive time drain. 

Ange
Absolutely. You know what? I actually just want to crunch the numbers. Imagine back then our hourly rate at Dr. Drip was a hundred dollars. If this guy spent an hour a day running to the supplier, that’s a hundred dollars wasted right there a day. Multiply that by five days a week. And you’re looking at $500 a  week. Stick with me here. Okay. So over a year, take out holidays, public holidays, and sick days. And that mistake was costing our business $22, 000 for just one tradie a year. 

Andy
Wow. And just imagine if you had a team of five and everyone was doing that, that’d be $110, 000 a year gone.

Ange
Yeah. So what have I told you that you had to cover the cost of that one tiny single mistake? If hypothetically you were making a 10 percent net profit margin, you’d need to generate 1. 1 million dollars in revenue just to cover the loss.  

Andy
It is absolutely crazy. And this is where so many businesses out there are going so wrong. And that’s just from one seemingly insignificant mistake. The scary thing is small leaks like this happening in almost every trade business, every single day, whether it’s inefficiencies in stock control, missed upselling and cross selling opportunities or poor job follow ups, the costs pile up really fast.

Ange
Yes, so the problem is, these small mistakes often go unnoticed. You don’t feel the immediate and obvious pain like you would with say a 60k blowout. But over time, they’re actually more damaging to the business. 

Andy
And this is why it’s so important to take a hard look at your processes. Ask yourself, where are these small leaks in your business? Is it wasted time, misquotes, or poor communication with your team? Identify them, quantify the cost and fix them because if you don’t, those little mistakes will keep stealing your profits year after year after year. 

Ange
Well, the good news is once you start addressing these small issues, the changes can be transformative. It’s about making your business work smarter, not harder. 

Andy
So grab a notepad, take a walk around your business. And start spotting those leaks because I guarantee if you plug them up, you’ll be amazed at how much money you can save. 

Ange
Exactly. So let’s talk about mistakes in the flow of a job. You might think you’ve got things running really smoothly, but even a small breakdown at any stage, whether it’s quoting or inspections or follow ups, can have a massive impact on your profits.

Andy
Yeah, it’s true. We spend a great deal of time talking with our members about executing the flow of one single job with excellence. Each time a single job that perhaps repeat every day takes longer than it could, or stock on your vehicle is not replenished correctly, which means you have a tradie going to the supplier every day, or perhaps you’re not following up on those quotes as quickly as you should, or you’re getting callbacks. These mistakes all cost you a ridiculous amount of money.

Ange
Absolutely. And here’s the kicker. Those mistakes don’t just cost you money directly. They also waste time. They actually hurt your reputation as a business and they lead to so many missed opportunities. 

Andy
Yeah, I’ve got a great example of this on how fixing one part of the flow of a job can make a huge difference. And this is a story that John, one of our members, reached out and told me the other day, he’s been absolutely smashing in business and doing really well, but he just noticed an increase in C and D customers and he couldn’t work out. Why the customers just seem a bit tighter and not his normal quality that he’s had in the past. And some of these guys were causing some real troubles and some headaches for not only him and the business, but the team. 

Ange
Yes. And the culprit, he dropped the ball on following a simple process taught by us here at Lifestyle Tradie. So when John first joined Lifestyle Tradie, we helped him implement what we call the call converter system that totally transformed business. It’s a nine step process in order that we follow when speaking to a potential customer on the phone. So the power of this process is that it filters out the time wasters and only allows us to say yes to working with high value, A grade customers.

Andy
But over time, as things got busy, John realized he had drifted away from following the system the way it was taught and hence the qualities of his customers started to drop off and hence, so did his profits. 

Ange
Yes, but to John’s credit, he didn’t ignore the problem. He actually went back, re-watched the training, and started using the call converter scripting and process again. And guess what? Within a week, he was back on track with quality customers filling his pipeline that didn’t cause any problems. And helped lift and improve the profit margins. 

Andy
That’s the power of small fixes. By tightening up just one small, tiny part of the flow of a job, John saw immediate results. And that’s a lesson for you listening right now. 

Ange
Exactly. Those 1 percent improvements in your process can make all the difference between a zero profit year and a 20 percent net profit year. So ask yourself, what kind of year do you want to have?

Andy
Because the reality is it’s not about working hard, huh? It’s about working smarter. Look at your job flow. Where are things slipping? Where you can make small changes that will help make a big impact in your business.

Ange
Yeah. And remember the small tweaks you make today will actually pay off tomorrow. It’s not just about fixing mistakes. It’s about building a business that works for you, not the other way around. 

Andy
Let me ask you something. How many times have you started a new year thinking this is it. This is the year everything changes. You’ve got some real big plans. You fix the cash flow issues, take a proper holiday. Finally, the business is running smoothly, but somehow life gets in the way and by mid February and then March, you’re back into the same grind, making the same mistakes and wondering where all that momentum went. 

Ange
Yeah, look, it happens to the best of us. The days turn into weeks and before you know it, another year’s gone by and you’re still stuck in the same place. It’s not because you’re not working hard enough, you’re probably working harder than ever, but is it working? 

Andy
And it’s not just the money slipping through the cracks. It’s the time you’re missing out on. The late nights quoting instead of being with your family. The holidays where you’re glued with the phone stuck to your head. And the mornings when you wake up all feeling like you’ve been in a ring with a heavyweight boxer and you’re not really looking forward to the start of the day. 

Ange
Well, the worst part is, if nothing changes, 2025 will actually be no different. You’ll finish the year feeling just as frustrated, just as stuck, and wondering why all that hard work didn’t get you anywhere.

Andy
But it doesn’t have to be that way. Imagine this year being the one where you finally break free from the cycle. A year where your business works for you, not the other way around. Where you’re not constantly putting out fires, but building something stable. Something that gives you the time, the Freedom and the money to enjoy life again.

Ange
Yeah, look, here’s the thing. It’s not about overhauling everything at once. It’s about making small, deliberate changes that fix the cracks in your business and gets you moving in the right direction.

Andy
And to help you do just that. We’re hosting stress free tradie, a live one day business event just for trade business owners designed to set you up for success in 2025. So come and meet us in Melbourne, Brisbane or Sydney. 

Ange
Yeah, this event is all about giving you the tools and the strategies to tackle the challenges holding you back, whether it’s fixing cash flow, building systems that work. Or finally taking control of your time. 

Andy
Don’t let this year become another missed opportunity. Head to lifestyletradie.com.au and click on the events page to grab your ticket to stress free tradie. It’s free. So don’t come alone. Consider this your invitation to bring along your partner or another tradie mate in business.

Ange
Let’s make 2025, the year you finally take charge of your business and your life. Because you deserve it. 

Andy
It’s Tradie Dilemma time and this is our Q&A segment where you let us know what you’re having trouble with in your business and we give you our best advice.

Ange
All right, so today we have a question from Jono in Queensland. 

Andy
Ah, Jono. 

Ange
Yep, and he writes, Dear Andy and Ange. That’s very formal. I run a plumbing company with my dad and I’m curious as to how to market effectively in this field. I’m 21 and pretty versed with social media, but I’m afraid our target audience, who are Brisbane landlords, are not up with technology as I would hope. So I’m hesitant to jump into social media or digital marketing. Is this a mistake? We’ve had moderate success sending letters out, but are looking for another stream to market. Any advice would be appreciated. Thanks. 

Andy
Well, thanks for that, Jono. Being 21, I’ve got no doubt you are well and truly up to date with social media. Um, you mentioned Brisbane landlord, so I’m assuming you’re going through a real estate company and a property manager? I’m not sure in regards to that. But you’re right, when you’ve got an older demographic, what’s the best way to hit them? Uh, I don’t necessarily think that the older generation aren’t on social media or aren’t on digital marketing as much. So I don’t think it’s a mistake to not continue to do that or to look at that, but it costs and it can cost some really big dollars. Here at Lifestyle Tradie, we always try and work on the basic stuff first. It’s the most common stuff. It’s the stuff that you get work from, but it doesn’t cost you an absolute bomb. It’s like setting your business up the right way from the start and getting the foundations right. We like to do that in marketing as well. Getting the foundations of your marketing is the most important thing. Sometimes those little things might bring a job in only once a month, but it’s those jobs that keep ticking along. And then what we do with our members, once they’ve done all the foundations right. And then they can start diving into spending big dollars on AdWords and all these other things along the way. So I think, you know, if I look at my parents, they’re, they’re all my mom, she’s on Facebook, they’re all around. So I think the older generation definitely are there.

Ange
Jono, uh, what I love is the fact that you’re realizing that one form of marketing of what we call attract marketing isn’t enough for your business. And that you’re looking outside of the box now. We educate here at Lifestyle Tradie that you need a minimum of 10 based on the avatar that you’re looking at. So therefore, it is important to really understand them well. So my question to you, I want you to go back and think about and maybe even go ask those people where do you hang out? How do they find you? And maybe it’s through LinkedIn. So have a really good think about how you could execute that in your trade business. Thanks so much Jono for writing in and sharing your dilemma. Remember, if you have a question or a dilemma in your trade business. Then reach out to us and let us know what we can do to help you. 

Andy
Subscribe to The Tradie Show, wherever you get your favorite podcasts.  Rate and write us a review or for more information about Lifestyle Tradie, head to lifestyletradie.com.au.