Wondering how much do Plumbing Business owners make? Keep reading!
If you want to start a business, no matter the niche, among many other questions, you will ask how much will that specific business make?
Even though it might be easy to figure out how much a traditional global business makes, like software or product businesses, it is always hard to estimate how much a local business like a plumbing business will make since it totally depends on your ability to find clients, how much you charge on your specific state and city, and how fast you will finish one client’s business and go to another one.
However, just to give you an idea according to Getonedesk, on average, around 35% of a plumbing company’s revenue is profit.
So in this article will talk about how much plumbing business owners make on average in actual numbers and show you whether it will be worth it or not to have a plumbing business.
Also Read: What Is Plumbing?
How Much Do Plumbing Business Owners Make?
There are a variety of plumbing businesses and a variety of working ways.
Some plumbing businesses charge a flat rate with different types of business they go to; some plumbing businesses have different rates depending on where they go and what kind of business they take on.
The size of the entire plumbing business also affects the charges on the jobs because if a plumbing business has a lot of clients, workers, and different types of expertise within their domain, they will be able to charge a flat rate to cover their expenses.
But if you are a one-person business and you are charging clients per hour or depending on how hard it is and how far away it is from their city or state.
On average, whether it is a one-person plumbing business or a multiple-worker plumbing businesses, typical plumbing works are somewhere between $150 and $500.
This number is only for the work you do; there is also a flat service fee no matter how much you work on the job. This is apart from the classical hourly rate or a flat rate per job.
An average master plumber working by themselves in their company charges these prices, which would equate to around $45 per hour; by working 8 hours every day, they can earn up to $100,000 annually, which is a six-figure salary that many professions do not get to have.
Also Read: What Plumbing Work Can Be Done Without License Of 2023?
Also Read: Plumbing Leads – 4 Methods to Get Hands-On Qualified Leads
State Wise Plumber Salary
The success of your business determines your salary as a plumber.
However, the average plumber’s salary during 2020 was $56,000 annually, with the top 10% making $100,000 annually.
Here are some of the best-paying states for plumbers:
- Alaska: $79,610
- Illinois: $86,120
- New Jersey: $74,360
- Minnesota: $74,700
- Massachusetts: $73,970
As far as the future outlook of a plumbing job is concerned, it is projected that the employment of plumbers will grow by 4% between 2019-2029.
Can Plumbing Make You Rich?
How Much Money Do Self-Employed Plumbers Make?
In 2014, the median wage of self-employed plumbers was $55,000, which is about $26.44 an hour for a 40-hour working period.
In the U.S., the earnings of a self-employed plumber vary from region to region.
For example, Plumbers earn a moderate pay of $43,000 in the southern region, whereas they earn $87,000 in Mississippi and other regions.
To become a journeyman plumber, a person must complete five years of studentship programs.
They must also have up to five years of experience and pass the necessary exam to obtain certification.
How To Build a Profitable Plumbing Business?
In order to have a profitable plumbing business, you cannot keep changing your price or the way you charge for your services. Plumbing business owners must have a solid pricing formula.
Here is an example of the rates that you should calculate before determining how much you want to charge for your service:
- Base hourly rate: To calculate this, determine how much you want to earn in a week and then divide this by the billable hours you want to work.
- Billable hourly rate: To determine this, calculate your overhead expenses cost and profit margin and then add this to your base hourly rate.
- Labor hours: Calculate your total labor hours and multiply it with your base hourly rate to calculate this.
- Bidding: In this, calculate the price for taxes, labor, material cost, permits, and other expenses.
- Total for the quote: Now add the labor hours to your total bidding cost to get the total for the quote.
How To Start a Plumbing Business?
To conclude, the amount of money plumbing business owners make totally depends on the size of the company, the number of jobs they take on, and how much they can charge in their city.
If you are in a small city, the prices you can charge will be lower than in a massive metropolitan city like Los Angeles.
That is why it depends, but on average, a master plumber with a one-person company can expect to earn close to $100,000 if they charge somewhere between $40-$45 and work 8 hours per day.
Also Read: How Much Money To Start A Plumbing Business Of 2023?
Can plumbers make a 6-figure income?
People wonder if they can make a 6-figure income as a plumber.
So yes, the top 10% of plumbers make $103 000 annually, so it is possible to make a six-figure income as a plumber.
How much profit margin is there in the plumbing business?
The profit margin in plumbing work is 15-30% on average.
Which type of plumber makes the most amount of money?
Here are the different types of plumbers and the money they make:
- Plumbing Engineer: $73,000-$97,000 per year.
- Master Plumber: $52,000-$79,500 per year.
- Plumbing Designer: $60,000-$83,000 per year.
- Residential Plumber: $46,500-$82,500 per year.
Amit Gupta is the founder of National Planning Cycles, a company that helps startups, individuals, and small businesses with their financial planning. He has a vast amount of experience in the finance sector, having managed Google Play accounts for some of the world’s most successful unicorns. Amit is an expert in his field, and he uses his knowledge to help others achieve their individual goals.