This article was written by our expert who surveys the plumbing industry and continuously updates the business plan for a plumbing company.
Profitability in plumbing is driven by tight control of labor, smart pricing, and reliable repeat work.
In October 2025, a typical job brings in $200–$800 on average, with small repairs at $150–$350 and larger installs such as water heaters reaching $850–$1,700. Labor usually accounts for 40–60% of total cost, materials 20–30%, plus transport and overhead.
If you want to dig deeper and learn more, you can download our business plan for a plumbing company. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our plumber financial forecast.
This quick summary gives the key profitability levers in plumbing services—what you earn per job, where money leaks, and what to fix first.
Use these benchmarks to set prices, structure your team, and decide on software and marketing spend.
| Metric | Typical Range (Oct 2025) | Notes for a new plumbing business |
|---|---|---|
| Average revenue per job | $200–$800 | Basic repairs $150–$350; water heater installs $850–$1,700; premiums for emergencies/after-hours. |
| Cost structure | Labor 40–60%; Materials 20–30%; Overhead 15–25% | Include wages, benefits, payroll taxes; keep a materials markup (20–30%) for handling and profit. |
| Gross margin | ~60–65% (can hit 70%+ on emergencies/contracts) | Improve with flat-rate menus, part bundles, and first-time-fix performance. |
| Net margin | 10–20% (top operators 15–25%) | Requires disciplined pricing, scheduling, and low callback rates. |
| CAC vs. LTV | CAC $200–$350; LTV $4,000–$5,000 | Target LTV:CAC ≥ 4:1 through memberships and referral flywheels. |
| Job time benchmarks | Routine 1–2h; Heaters 3–6h | First-time-fix rates ~77% among top operators; reduce returns to protect margins. |
| Seasonality impact | Winter ↑, summer ↓ (varies regionally) | Offset with maintenance plans, water-quality add-ons, and targeted promos. |
How much revenue does a typical plumbing job bring in?
Most plumbing jobs generate $200–$800 in revenue, depending on complexity and timing.
Small repairs like leaks or drain unclogs average $150–$350, while jobs such as water heater installations commonly reach $850–$1,700. Emergency and after-hours work commands higher ticket prices due to urgency and limited availability.
Your average ticket will rise if you bundle diagnostics and standard parts, enforce a minimum service fee, and charge a call-out for long drives. Tracking by job type helps you forecast cash flow and staffing needs accurately.
Set a base visit fee (e.g., $79–$129), then layer flat-rate tasks and part markups to standardize pricing and protect margins.
You’ll find detailed market insights in our plumber business plan, updated every quarter.
What are the main cost drivers (labor, materials, transport, overhead)?
Your cost structure is dominated by labor, followed by materials, transport, and overhead.
Use the table below to set targets and spot leaks in profitability for your plumbing company. Adjust the ranges to your region and crew seniority.
| Cost Driver | Typical Share | What This Includes & Control Measures |
|---|---|---|
| Labor | 40–60% | Wages, benefits, payroll taxes; improve utilization with tight dispatch windows, first-time-fix parts lists, and job photos/videos to cut callbacks. |
| Materials | 20–30% | Parts, fixtures, consumables; maintain a 20–30% markup to cover handling and shrink; negotiate vendor tiers and standardize SKUs. |
| Transport | ~3–6% + $50–$100/job call-out | Fuel, maintenance, insurance; route optimization and geo-clustering reduce windshield time and overtime risk. |
| Overhead | 15–25% | Office/admin, software, phones, rent, insurance, licenses; audit monthly and tie software seats to active techs only. |
| Tools & Depreciation | 2–5% | Power tools, jetters, camera rigs; schedule preventive maintenance and track custody to lower loss/downtime. |
| Marketing | 3–8% | PPC, LSA, SEO, van wraps; target LTV:CAC ≥ 4:1 and pause underperforming campaigns fast. |
| Training & Safety | 1–2% | Onboarding, certs, PPE; reduces accidents and callbacks, lifting profit per tech. |
How much of total cost is labor in plumbing operations?
Labor typically represents 40–60% of total cost in a plumbing business.
This share includes wages, overtime, benefits, and payroll taxes; it also captures paid but non-billable time such as driving, supply runs, and callbacks. Reducing non-billable hours by 10–15% often shifts net margin upward by 2–4 percentage points.
Raise billable utilization with tighter time windows, pre-job photos, and standard truck stock so techs avoid parts runs. Track individual first-time-fix rates and coach low performers weekly.
Price to an effective labor rate that fully loads your costs (wage × 2.5–3.5 as a rule-of-thumb) when building flat-rate menus.
This is one of the strategies explained in our plumber business plan.
What are typical gross and net margins in plumbing?
Gross margins commonly sit around 60–65%, with net margins at 10–20%.
Emergency jobs and maintenance contracts can push gross above 70%, while mature, efficient firms reach 15–25% net. Smaller firms usually land at 10–15% net until scheduling, pricing, and inventory controls mature.
Protect gross margin with flat-rate pricing, standard part bundles, and minimum service fees; protect net margin by cutting callbacks and tightening drive time. Review pricing quarterly to reflect material and fuel changes.
Track margin by job type (repair, install, emergency) and by technician to focus training where it pays back fastest.
We cover this exact topic in the plumber business plan.
How do customer acquisition costs compare with customer lifetime value?
Healthy plumbing firms keep CAC far below LTV with a 4:1 ratio or better.
Typical CAC is $200–$350 per new customer, while well-run firms report LTV of $4,000–$5,000 over several years. The difference comes from repeat service, emergency calls, and upgrades over time.
| Metric | Benchmark | How to Achieve/Improve |
|---|---|---|
| CAC (per new client) | $200–$350 | Prioritize high-intent channels (Google LSA, referrals); cap bids by expected LTV; use call tracking to cut waste. |
| LTV (per client) | $4,000–$5,000 | Memberships, seasonal tune-ups, water-quality add-ons, and timely replacement recommendations. |
| LTV:CAC ratio | ≥ 4:1 | Boost retention via reminders and warranties; reduce CAC by building review velocity and local SEO. |
| Payback period | < 6 months | Use upfront bundles and financing to raise day-one ticket size. |
| Repeat rate (12 months) | 30–50% | Automated follow-ups and service agreements keep customers cycling back. |
| Referral share | 15–30% | Structured referral rewards and fast response times. |
| Churn | < 25% | Proactive check-ins and NPS-based recovery for detractors. |
Which pricing strategies work best today?
- Adopt flat-rate pricing for common tasks to raise average ticket 20–30% and improve customer trust.
- Use dynamic pricing: premiums for after-hours, holidays, and rapid-response windows to reflect higher operating costs.
- Bundle parts and labor (e.g., “wax ring + flange + labor”) to simplify quotes and protect gross margin.
- Offer membership/subscription plans (annual checks, priority response, discounts) to stabilize cash flow.
- Provide good-better-best options so customers self-select higher-margin solutions without pressure.
Get expert guidance and actionable steps inside our plumber business plan.
How does seasonal or regional demand affect profitability?
Demand rises in winter and dips in summer, with regional factors reshaping the curve.
Cold regions see winter spikes (frozen pipes, heater issues), while flood-prone or high-growth areas create steady installation and remediation work. Population growth markets (e.g., Sun Belt, major Asia-Pacific cities) often support higher utilization year-round.
Use off-season promos and maintenance plans to smooth utilization; pre-book inspection routes before peak seasons. Stock seasonal parts early to avoid supply shocks and price spikes.
Forecast weekly capacity and price time-sensitive slots higher during peaks to maintain service levels.
It’s a key part of what we outline in the plumber business plan.
How much do upselling and cross-selling lift margins?
- Maintenance memberships convert one-off callers into repeat clients and lower CAC over time.
- Cross-sell water filtration/softeners when addressing water quality complaints to boost ticket size.
- Offer fixture upgrades (low-flow, premium finishes) during repairs to lift gross margin without extra drive time.
- Bundle camera inspections with drain work to diagnose future issues and pre-sell follow-ups.
- Propose extended warranties and priority service tiers that monetize speed and certainty.
How efficient are current scheduling, dispatch, and inventory systems?
Modern systems reduce drive time and increase first-time-fix rates, directly improving profit.
Use the KPI table to choose software targets and processes for your plumbing operation.
| Operational Area | Benchmark | Actions and Notes |
|---|---|---|
| Scheduling & Dispatch | FTF ≥ 77% | Geo-clustering, photo/video intake, parts pre-checks; narrow time windows to protect utilization. |
| Drive Time | < 20% of paid hours | Route optimization, parts lockers, supplier will-call near route starts. |
| Inventory Accuracy | ≥ 95% | Standard truck stock list, weekly cycle counts, barcode scans, SKU rationalization. |
| Callback Rate | < 5% | Job photo logs, checklists, and senior tech approvals on high-risk repairs. |
| Utilization (billable) | ≥ 70% | Shorten admin time with mobile invoicing and templates; pre-assign prep tasks. |
| Quote-to-Close | ≥ 50% | Good-better-best menus, financing options, and rapid follow-ups within 24 hours. |
| Parts Lead Time | < 24–48h | Vendor tiers, early seasonal buys, and substitution rules to avoid job stalls. |
What are standard job times and why do they matter?
Clear time benchmarks let you schedule accurately and quote confidently.
They also expose training gaps and inventory issues that create callbacks and erode net margin. Use the table below to plan staffing and FTF improvements.
| Job Type | Typical Duration | Profit Impact & Notes |
|---|---|---|
| Leak repair (minor) | 1–2 hours | High volume; keep standard fittings on truck to avoid supply runs. |
| Drain unclog | 1–2 hours | Bundle with camera inspection upsell; track repeat clogs for replacement proposals. |
| Toilet replacement | 2–3 hours | Use good-better-best fixtures; pre-quote wax ring/flange and disposal. |
| Water heater install | 3–6 hours | Offer upgraded warranties and annual flush memberships to extend LTV. |
| Repipe (partial) | 1–2 days | Stage materials; communicate water-off windows to reduce returns and OT. |
| Sewer line repair | 1–3 days | High ticket; ensure permits/locates ready to prevent idle time. |
| Emergency burst repair | 2–5 hours | After-hours premium protects gross margin; prioritize FTF to avoid revisits. |
What impact do repeat business and referrals have on long-term profitability?
Repeat customers and referrals drive most of the long-term profit in plumbing.
They reduce CAC, raise close rates, and stabilize schedules during slow periods. Maintenance plans and strong review velocity amplify this effect by keeping your brand top-of-mind.
Track LTV by source and pay higher referral rewards than generic ad spend if the payback is superior. Automate reminders for annual services and warranty checks to keep customers engaged.
Establish a referral program with clear rewards and fast acknowledgment to turn every satisfied client into a promoter.
This is one of the many elements we break down in the plumber business plan.
How do rising material and fuel costs influence profit—and how do you offset them?
- Quarterly price updates tied to supplier lists prevent silent margin erosion.
- Bulk purchasing and vendor tiers lower unit costs; standardize SKUs to concentrate volume.
- Route optimization and geo-clustering reduce fuel/OH; keep drive time under 20% of paid hours.
- Use dynamic pricing for after-hours and peak-season slots to match higher operating costs.
- Offer financing to preserve close rates when prices move up.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to go further?
Explore startup budgets, revenue models, and step-by-step setup for a profitable plumbing company.
Sources
- DojoBusiness — Plumber Profitability (benchmarks & margins)
- ServiceTitan — Plumbing Business Profitability
- GetJobber — How to Price a Plumbing Job
- Brentwood Growth — Maximize Plumbing Profits
- This Old House — Plumbing Cost Guide
- BuildOps — Plumbing Pricing
- GetJobber — Plumbing Software
- Housecall Pro — Profitability Guide
- ServiceM8 — Improve Trade Business Margins
- CallConley — Lifetime Value of a Plumbing Customer