How Much Does a Plumbing Company Make a Year?

Thinking about starting a plumbing business—or curious how much your local plumber really earns? You’re not alone. Many aspiring entrepreneurs and curious homeowners ask, “How much does a plumbing company make a year?” The truth is, earnings vary widely based on location, experience, and business model—but with the right strategy, plumbing can be a highly profitable trade. Let’s break down the numbers, explore what drives income, and reveal what top earners are doing differently.

What Is the Average Annual Revenue for a Plumbing Company?

According to the U.S. Bureau of Labor Statistics (BLS) and industry reports from IBISWorld, the average plumbing business in the United States generates between $150,000 and $350,000 in annual revenue. However, this is just the baseline.

• Solo plumbers (one-person operations) typically earn $60,000–$120,000 in net profit.
• Small to mid-sized companies (2–10 employees) often report $250,000–$750,000 in yearly revenue.
• Large plumbing firms with 20+ employees and commercial contracts can exceed $2 million annually.

💡 Key Insight: Revenue ≠ profit. After expenses (labor, vehicles, insurance, tools, marketing), net profit margins usually range from 10% to 25%.

What Factors Influence a Plumbing Company’s Earnings?

Several variables determine how much a plumbing company makes in a year. Here’s what matters most:

1. Geographic Location

Plumbers in high-cost urban areas (e.g., New York, San Francisco, Boston) charge more per job. For example:

• Average hourly rate in rural Texas: $75–$100
• Average hourly rate in Manhattan: $125–$200+

Higher rates = higher revenue potential—but also higher operating costs.

2. Service Specialization

General residential plumbing pays well, but specialized services boost profits:

• Emergency plumbing (after-hours calls): +30–50% markup
• Commercial plumbing contracts: Recurring, high-value work
• Drain cleaning or water heater installation: High-margin add-ons

Companies offering 24/7 emergency services often see 20–30% higher annual income.

3. Business Model

• Independent contractors keep more profit but scale slowly.
• Franchise owners (e.g., Mr. Rooter, Benjamin Franklin) benefit from brand recognition but pay royalties (6–10% of revenue).
• Full-service firms with dispatchers, multiple vans, and digital booking systems scale faster and serve more customers daily.

4. Online Presence & Reviews

A strong Google Business Profile with 4.8+ stars can increase call volume by 40% or more. In today’s market, digital visibility directly impacts revenue.

Real-World Examples: Plumbing Company Earnings in 2025

Let’s look at three real-world scenarios (based on anonymized industry data):

📌 Note: The Seattle franchise invests heavily in SEO, paid ads, and customer retention—key reasons for its scale.

For deeper context, the plumbing industry in the U.S. is valued at over $120 billion, with steady 3–4% annual growth, as noted by Wikipedia’s overview of the plumbing industry .

How to Increase Your Plumbing Company’s Annual Income

Want to move from average to top-tier earnings? Follow these actionable steps:

Step 1: Track Every Expense and Job

Use software like Jobber or ServiceTitan to monitor:

• Cost per job
• Technician efficiency
• Customer lifetime value

Step 2: Raise Your Rates Strategically

Increase prices by 5–10% annually, especially if you offer guarantees, same-day service, or eco-friendly solutions.

Step 3: Offer Maintenance Plans

Recurring revenue from annual plumbing inspections or water heater flushes builds predictable income. Example:

• Charge $199/year per household
• 200 clients = $39,800 in recurring revenue

Step 4: Optimize for Local SEO

• Claim your Google Business Profile
• Collect 5-star reviews
• Publish blog content like “Signs You Need a Sewer Line Inspection in [City]”

Businesses ranking on page 1 of Google get 92% of all clicks—don’t miss out.

Step 5: Upsell Smartly

Train technicians to identify opportunities:

• “While I’m here, your water pressure is low—could be a failing pressure regulator. Replacement is $295 and prevents future leaks.”

This can increase average ticket size by 25%.

Pros vs. Cons of Owning a Plumbing Business

Despite challenges, 85% of plumbing business owners report satisfaction with their income and independence (Source: HomeAdvisor Contractor Survey, 2024).

FAQ: How Much Does a Plumbing Company Make a Year?

Q1: Do plumbing companies make good money?

Yes—especially with efficient operations. Top 20% of plumbing businesses earn $500,000+ in annual revenue, with net profits often exceeding $150,000.

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

Startup costs range from $10,000 (solo, used van) to $75,000+ (franchise or multi-van operation). Key expenses include licensing, insurance, tools, vehicle, and marketing.

Q3: What’s the average hourly rate for plumbers in 2025?

Nationally, plumbers charge $80–$150/hour. Emergency or specialty services can go up to $250/hour in major cities.

Q4: Can you run a plumbing business from home?

Yes! Many solo plumbers operate from home, using a van for jobs. However, you’ll still need proper business licensing, liability insurance, and a registered address.

Q5: How long does it take to become profitable?

Most plumbing businesses break even within 6–18 months. Success depends on marketing, local competition, and operational efficiency.

Q6: Are plumbing companies recession-proof?

Largely, yes. People always need working toilets, hot water, and leak repairs—even in economic downturns. Routine maintenance may dip, but emergency calls remain steady.

Conclusion

So, how much does a plumbing company make a year? The answer ranges from $60,000 for a solo operator to over $2 million for established firms—but your earnings depend on strategy, location, and customer focus. With smart pricing, digital marketing, and service diversification, plumbing remains one of the most reliable and profitable skilled trades in America.

If you found this breakdown helpful, share it with a friend considering a trade career or a fellow small business owner! 💧🔧
And don’t forget to bookmark this guide—it’s updated for 2025 with the latest industry data.

Got questions about launching or scaling your plumbing business? Drop them in the comments below!