How Much Do Plumbing Companies Make a Year? (2025 Breakdown)

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Thinking about starting a plumbing businessโ€”or wondering if your current one is on track? You’re not alone. Many entrepreneurs and tradespeople ask: โ€œHow much do plumbing companies make a year?โ€ The answer isnโ€™t simpleโ€”it varies widely based on location, team size, services offered, and business model. But donโ€™t worry: this guide breaks it all down with real data, expert insights, and actionable takeaways to help you understand (and potentially boost) your earnings.


What Is the Average Annual Revenue for a Plumbing Company?

Most plumbing businesses in the U.S. report annual revenues between $100,000 and $500,000, according to industry reports from IBISWorld and the U.S. Bureau of Labor Statistics (BLS). However, top-performing companiesโ€”especially those in high-demand metro areas like Los Angeles, New York, or Miamiโ€”can generate $1 million or more in yearly revenue.

Hereโ€™s a quick snapshot based on business size:

Solo plumber (1-person)$70,000 โ€“ $120,00015% โ€“ 25%
Small team (2โ€“5 plumbers)$250,000 โ€“ $600,00020% โ€“ 30%
Mid-sized company (6โ€“15)$600,000 โ€“ $1.5 million25% โ€“ 35%
Large franchise/enterprise$2 million+10% โ€“ 20%*

Note: Larger companies often have higher overhead, which can reduce net margins despite high revenue.

These figures align with data from the Plumbing-Heating-Cooling Contractors Association (PHCC) and reflect 2024โ€“2025 industry trends.


What Factors Influence a Plumbing Companyโ€™s Earnings?

Revenue isnโ€™t just about how many pipes you fixโ€”itโ€™s shaped by several strategic variables:

1. Geographic Location

Plumbers in urban or high-cost-of-living areas (e.g., San Francisco, Boston) typically charge 20โ€“40% more per service call than those in rural regions. Emergency services in these areas can fetch $150โ€“$300+ per hour.

2. Service Mix

Companies offering 24/7 emergency services, drain cleaning, water heater installation, or sewer line repair earn significantly more than those limited to basic leak repairs. Specialized services like whole-home repiping or tankless water heater installation command premium pricing.

3. Business Model

  • Residential-only: Steady but lower-ticket jobs.
  • Commercial contracts: Higher revenue potential via maintenance agreements.
  • Hybrid model: Best of bothโ€”diversified income streams reduce seasonal dips.

4. Marketing & Online Presence

A plumbing company with strong local SEO, Google Business Profile optimization, and customer reviews can see 2โ€“3x more leads than competitors relying only on word-of-mouth. According to BrightLocal , 98% of consumers read online reviews for local businesses.

How Much Do Plumbing Companies Make A Year

Real Profit Margins: Revenue vs. Take-Home Pay

Itโ€™s crucial to distinguish revenue from profit. A plumbing company might bring in $400,000 a yearโ€”but after payroll, insurance, vehicle costs, tools, and marketing, net profit often lands between $80,000 and $180,000 for a small team.

For example:

โ€œMikeโ€™s Reliable Plumbingโ€ (family-run, 3 employees, Texas)

  • Annual Revenue: $420,000
  • Operating Costs: $290,000
  • Net Profit: $130,000 (31% margin)

This aligns with industry standards cited in the U.S. Census Bureauโ€™s Annual Business Survey.

For deeper context on how small businesses structure income, see the Wikipedia entry on small business economics .


How Can You Increase Your Plumbing Companyโ€™s Annual Income?

Ready to grow? Follow these 5 proven steps:

  1. Add High-Value Services
    Offer water filtration systems, smart leak detection, or bathroom remodeling partnerships. These can boost average ticket size by 30โ€“50%.
  2. Implement Maintenance Plans
    Sell annual service contracts ($150โ€“$300/year per household). They create recurring revenue and improve customer retention.
  3. Optimize Your Online Reviews
    Aim for 4.8+ stars on Google. A one-star increase can lead to a 5โ€“9% revenue bump (Harvard Business Review).
  4. Use Flat-Rate Pricing
    Instead of hourly billing, use fixed-price service guides. Customers prefer transparency, and you avoid undercharging on complex jobs.
  5. Track KPIs Monthly
    Monitor:
    • Average job value
    • Lead conversion rate
    • Customer acquisition cost (CAC)
    • Technician utilization rate
    Adjust quickly based on dataโ€”not guesswork.

Common Misconceptions About Plumbing Business Income

Many assume plumbing is a โ€œget-rich-quickโ€ trade. Letโ€™s clarify:

  • โŒ โ€œAll plumbers make six figures.โ€
    โœ… Only the top 20โ€“25% doโ€”usually owners with scalable systems.
  • โŒ โ€œMore vans = more money.โ€
    โœ… Not if overhead outpaces revenue. Efficiency beats fleet size.
  • โŒ โ€œYou donโ€™t need marketing.โ€
    โœ… In 2025, 78% of plumbing leads come from online searches (HomeAdvisor).

FAQ Section

Q1: Do plumbing company owners make more than employed plumbers?

A: Yesโ€”typically. While a master plumber might earn $60,000โ€“$90,000 as an employee, business owners often take home $100,000โ€“$250,000+ after scaling operations and managing costs effectively.

Q2: How much does it cost to start a plumbing business?

A: Initial costs range from $10,000 (solo, used van) to $100,000+ (team, new vehicles, licensing, insurance). Most successful startups invest $25,000โ€“$50,000 upfront.

Q3: Whatโ€™s the average hourly rate for plumbing services?

A: Nationally, plumbers charge $75โ€“$150/hour. Emergency or weekend calls can go up to $200โ€“$300/hour in major cities.

Q4: Can a one-person plumbing business make $200K/year?

A: Yesโ€”but it requires premium pricing, high efficiency, and minimal downtime. Most solo plumbers max out around $120,000โ€“$160,000 unless they outsource admin or add passive income (e.g., YouTube tutorials, e-books).

Q5: How do seasonal trends affect earnings?

A: Winter brings burst pipes and heater issues; summer sees irrigation and outdoor plumbing demand. Smart companies balance seasons with indoor remodeling projects or commercial contracts.

Q6: Is franchising a plumbing business profitable?

A: Franchises like Mr. Rooter or Roto-Rooter offer brand recognition but charge 6โ€“10% royalties. Profitability depends on local market saturation and your ability to manage franchise fees vs. organic growth.


Conclusion

So, how much do plumbing companies make a year? The honest answer: anywhere from $70,000 to over $2 millionโ€”but success hinges on strategy, not just wrenches and pipes. By optimizing your service mix, pricing, and digital presence, you can move from surviving to thriving in this resilient, recession-resistant industry.

If you found this breakdown helpful, share it with a fellow tradesperson on Facebook, LinkedIn, or Instagram! Your network might be one step away from their breakthrough year.

Got questions about your specific situation? Drop a comment belowโ€”we love helping plumbers build profitable, sustainable businesses.

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