Being a knowledgeable and skilled plumber is a unique and valuable thing, but in many cases, it is not enough to keep a plumbing business running profitably. A business owner often has a totally different set of skills than a tradesman, and without those business skills many plumbers work themselves to the bone for very skinny profit margins.
Working Out Your Plumbing Business Costs
Setting up a costing spreadsheet will help you track all the costs that go into owning and operating your business. This does not just include the cost of the parts and labor, it also needs to include all the overhead that your business takes on. Once you have clearly defined these costs, it is then possible to figure out exactly how much you need to charge per hour, down to the penny, in order to pay yourself the salary you want!
Plumbing Business Owners Can (and Should) Make $100K+ Per Year.
You need to decide what you are going to make per week or month and build that into the pricing structure. Do not cheat yourself by just taking what is left over, it won’t work in the long run. My high school economics teacher’s most valuable lesson was pay yourself first. You are taking on the risk, you are working the long hours, don’t feel bad for paying yourself handsomely. The bare minimum salary for a plumbing business owner should be $78K per year and can be well into the $100K range.
If you’re not making the salary you deserve–Plumbers Training Institute has a new course that will help you do just that. Pricing Plumbing for Profit will teach you how to make more money in the plumbing industry. This course includes a complete job costing workbook and a pricing template that you can use to work out exactly what your business costs are, and our instructor, Master Plumber Randy Drake, walks you through the steps of creating a truly profitable pricing model.
By the end of this course you will have all the tools and information you need at your finger-tips, so when you are bidding on a job you know exactly how much to charge and precisely where the money will go!
Are You Ready to Make 100k a Year?