How Much Does a Small Plumbing Company Make? (2025 Breakdown)

Home ยป How Much Does a Small Plumbing Company Make? (2025 Breakdown)

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If youโ€™re dreaming of starting a plumbing businessโ€”or you already run oneโ€”youโ€™re probably wondering: How much does a small plumbing company make? Itโ€™s a smart question. After all, profitability determines whether your business thrives or just survives. In this guide, weโ€™ll break down real-world earnings, average revenue, expenses, and what truly separates successful plumbing businesses from the restโ€”all backed by data and industry insights.


What Is the Average Annual Revenue for a Small Plumbing Company?

Most small plumbing companies in the U.S. generate $250,000 to $500,000 in annual revenue, according to the latest data from the U.S. Bureau of Labor Statistics (BLS) and industry reports by IBISWorld. However, top-performing solo operators or two-person teams can exceed $1 millionโ€”especially in high-demand urban markets like Phoenix, Austin, or Miami.

But revenue โ‰  profit. To understand true earnings, we must examine costs.


How Much Profit Does a Small Plumbing Business Actually Keep?

Profitability varies widely, but hereโ€™s a realistic snapshot:

Solo plumber (1 owner)$150,000 โ€“ $300,00015% โ€“ 25%$22,500 โ€“ $75,000
2โ€“3 person team$300,000 โ€“ $600,00020% โ€“ 30%$60,000 โ€“ $180,000
Established local shop (5+ employees)$750,000 โ€“ $1.5M25% โ€“ 35%$187,500 โ€“ $525,000

Source: 2024 Plumbing Industry Financial Benchmark Report (National Association of Plumbing-Heating-Cooling Contractors)

Key cost drivers include:

  • Labor (wages, payroll taxes, benefits)
  • Vehicle maintenance & fuel
  • Insurance (liability, workersโ€™ comp)
  • Tools, parts, and inventory
  • Marketing (digital ads, SEO, lead services)

๐Ÿ’ก Pro Tip: Companies that invest in recurring revenue models (e.g., maintenance contracts, drain cleaning subscriptions) see 20โ€“30% higher profit margins than those relying solely on emergency calls.

How Much Does A Small Plumbing Company Make

What Factors Influence a Plumbing Companyโ€™s Earnings?

Not all plumbing businesses earn the sameโ€”and location, specialization, and operations play huge roles.

1. Geographic Location

Plumbers in states like California, New York, or Massachusetts charge 20โ€“40% more due to higher cost of living and demand. For example:

  • Average hourly rate in rural Kansas: $75โ€“$95
  • Average hourly rate in San Francisco: $125โ€“$185

2. Service Specialization

General plumbing pays decently, but niches boost income:

  • Emergency/after-hours service: +30โ€“50% premium
  • Commercial plumbing: Larger contracts, steady work
  • Green plumbing (tankless water heaters, water-saving fixtures): Higher perceived value

3. Online Presence & Reviews

Businesses with strong Google Business Profiles and 4.8+ star ratings convert 2โ€“3x more leads than competitors, per BrightLocalโ€™s 2024 Local Consumer Review Survey.

4. Operational Efficiency

Using dispatch software (like Housecall Pro or Jobber) reduces no-shows and boosts daily job capacity by up to 25%.


Real-World Case Study: From Solo Plumber to $900K Business

Meet Jake R., a plumber from Denver. In 2020, he operated alone with $180,000 in revenue. By 2024, his company hit $890,000 with these steps:

  1. Built a simple website with SEO-optimized service pages (e.g., โ€œemergency plumber Denverโ€).
  2. Added maintenance plans at $199/yearโ€”now 35% of his revenue.
  3. Hired one apprentice (paid hourly + commission), freeing him to focus on high-ticket jobs.
  4. Ran targeted Facebook ads to homeowners aged 35โ€“65 in ZIP codes with older homes.

His net profit? $267,000 in 2024โ€”nearly triple his solo earnings.


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

Hereโ€™s a step-by-step action plan:

  1. Track Every Dollar
    Use accounting software (QuickBooks or FreshBooks) to monitor P&L weekly.
  2. Raise Rates Strategically
    Increase by 5โ€“10% annually, or add โ€œpremiumโ€ pricing for same-day service.
  3. Upsell Smartly
    After fixing a leak, offer a whole-house plumbing inspection ($99 value). Conversion rate: ~40%.
  4. Get Listed on Google
    Claim your Google Business Profile. Add photos, respond to reviews, and post weekly updates.
  5. Build Recurring Revenue
    Launch a โ€œPlumbing Health Planโ€ with bi-annual inspections, discounts, and priority scheduling.
  6. Reduce Customer Acquisition Cost (CAC)
    Ask happy clients for referrals (offer $25 gift cards). Referral leads convert at 70%+ vs. 20% for paid ads.

For deeper industry context, see the plumbing industry overview on Wikipedia .


FAQ: Common Questions About Plumbing Business Income

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

Yesโ€”typically. An employed plumber earns a median of $60,000/year (BLS, 2024). A small business owner with a 2-person team averages $100,000โ€“$180,000 in profit, plus asset appreciation (e.g., brand, vehicles, client list).

Q2: How long does it take to become profitable?

Most plumbing startups break even within 6โ€“12 months if they control costs and secure consistent leads. Those relying on third-party lead services (e.g., Angi, HomeAdvisor) often take 18+ months due to high cost-per-lead ($40โ€“$100).

Q3: Whatโ€™s the biggest expense for small plumbing companies?

Labor and marketing dominate. A two-person team spends ~40% of revenue on wages and 15โ€“20% on marketing. Smart owners reinvest early profits into automation to reduce both over time.

Q4: Can you run a plumbing business part-time?

Yesโ€”many start as side hustles. A part-time plumber working weekends/nights can earn $30,000โ€“$60,000/year. But scaling requires full-time focus on systems, hiring, and branding.

Q5: Are plumbing businesses recession-proof?

Mostly, yes. Plumbing is essentialโ€”leaks, clogs, and broken water heaters donโ€™t wait for economic recovery. In fact, during downturns, homeowners often repair instead of renovate, increasing demand for affordable fixes.

Q6: How much should I charge per hour?

U.S. averages:

  • Standard service: $80โ€“$130/hour
  • Emergency/weekend: $130โ€“$200/hour
  • Diagnostic fee: $75โ€“$125 (often waived if you do the repair)

Always check local competition and factor in your overhead.


Conclusion

So, how much does a small plumbing company make? Realistically, anywhere from $50,000 to over $500,000 in annual profitโ€”depending on strategy, location, and execution. The good news? Plumbing remains one of the most recession-resilient trades with high earning potential for those who operate efficiently and market smartly.

If you found this guide helpful, share it with a fellow tradesperson on LinkedIn or Facebook! And if youโ€™re serious about growing your plumbing business, start by auditing your pricing, building online reviews, and adding at least one recurring service this quarter.

Your future selfโ€”and your bank accountโ€”will thank you. ๐Ÿ’ง๐Ÿ”ง

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