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How Much Do Plumbers With Their Own Business Make Yearly?

Plumbing Business

A master plumber running a one-person company making $45 per hour, working 8 hours per day can rake in up to $100,000 per year.

If you can keep ongoing costs between $10,000 and $20,000 per year, this leaves $80,000 as net profit. According to reports, a typical plumbing company pays its plumbers between $20 and $40 per hour.

It simply means that each plumber costs the company roughly $50,000 to $75,000 per year in labour costs (including insurance and benefits).

While this substantially reduces profits, it allows a company to scale. Using the same $100,000 per year per plumber gross profit; a plumbing company could clear $25,000 to $50,000 per plumber, per year.

Plumbing companies charge a flat rate (sometimes plus materials) for jobs. However, they may also charge per hour or premium surcharges for emergency, rush, or off-hours service. Note that plumbing jobs can be priced per hour or as flat rate.

However, the average price for plumbing services tends to be between $160 and $430 for a typical job. This works out to an average per-hour rate of between $45 and $150.

Customers are usually also charged a flat service fee regardless of the number of hours worked on the job. This is in addition to the hourly or per-job flat rate.

However, making a plumbing company more profitable means scaling the business and possibly going into business with other tradesmen to offer comprehensive services.

Profits can also be boosted by contracting with construction companies. Remodels and renovations can become a major source of revenue for a plumbing company.

The very first step to starting a plumbing business is to earn your required certifications and licenses. Have it in mind that you cannot legally run a plumbing company without proper licensing, and it can take two to six years to become a licensed plumber.

Each state or region has specific requirements. To find yours, Google plumbing license requirements and your state/province name.

Only rely on information from trusted government resources. Many plumbers start out as apprentice working under an established plumber. It helps you get acquainted with the necessary skills involved in plumbing.

Plumbing businesses are more accessible start-up options, as the amount of capital needed is moderate. Expenses will typically include transportation (like a truck large enough to carry equipment), drain snakes, and other basic plumbing equipment.

The costs needed to start your plumbing business are moderate compared to other businesses. You can start with low overhead: one truck, one plumber, and a home office.

Howbeit, you will need adequate capital to get started. Have it in mind that your first major expense will be a van or truck to get you from job to job. If you don’t already have one, you can get a used one.

You’ll also need plumbing tools (costing up to $5,000), a uniform ($300), business cards ($100), a business license, and plumbing business insurance, which can cost from $600-2,000 a year.

Assuming you have a vehicle and your plumbing license already, you should have access to at least $10,000 in capital to start your plumbing business.

Ongoing expenses in this business are minimal. Maintenance on vehicles, maintenance/replacement of materials / tools, insurance, and office expenses (rent, utilities, etc.) are all that are required.


Promoting your plumbing company and generating more income will usually require a multi-pronged approach when first starting out. If you previously worked as an apprentice, you may have already made contacts in the industry.

Note that you will not be allowed to take your former employer’s customers with you, but you can entice new customers to do business with you based on your old employer’s reputation and the fact that you worked under a master plumber.

Additionally, direct mail is another major way to get new business. By buying a mailing list of individuals and businesses that have previously paid for plumbing services, you can tap into a target market.

Mail them a promotion offer to introduce them to your new plumbing company. Finally, ask friends and family for referrals to build a customer base.