If youโre dreaming of starting a plumbing businessโor you already run oneโyouโre probably wondering: How much does a small plumbing company make? Itโs a smart question. After all, profitability determines whether your business thrives or just survives. In this guide, weโll break down real-world earnings, average revenue, expenses, and what truly separates successful plumbing businesses from the restโall 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 millionโespecially 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 hereโs a realistic snapshot:
Solo plumber (1 owner)
$150,000 โ $300,000
15% โ 25%
$22,500 โ $75,000
2โ3 person team
$300,000 โ $600,000
20% โ 30%
$60,000 โ $180,000
Established local shop (5+ employees)
$750,000 โ $1.5M
25% 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)
๐ก Pro Tip: Companies that invest in recurring revenue models (e.g., maintenance contracts, drain cleaning subscriptions) see 20โ30% higher profit margins than those relying solely on emergency calls.
What Factors Influence a Plumbing Companyโs Earnings?
Not all plumbing businesses earn the sameโand location, specialization, and operations play huge roles.
1. Geographic Location
Plumbers in states like California, New York, or Massachusetts charge 20โ40% 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: +30โ50% premium
Commercial plumbing: Larger contracts, steady work
Businesses with strong Google Business Profiles and 4.8+ star ratings convert 2โ3x more leads than competitors, per BrightLocalโs 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:
Built a simple website with SEO-optimized service pages (e.g., โemergency plumber Denverโ).
Added maintenance plans at $199/yearโnow 35% of his revenue.
Hired one apprentice (paid hourly + commission), freeing him to focus on high-ticket jobs.
Ran targeted Facebook ads to homeowners aged 35โ65 in ZIP codes with older homes.
His net profit? $267,000 in 2024โnearly triple his solo earnings.
How Can You Increase Your Plumbing Companyโs Income?
Hereโs a step-by-step action plan:
Track Every Dollar Use accounting software (QuickBooks or FreshBooks) to monitor P&L weekly.
Raise Rates Strategically Increase by 5โ10% annually, or add โpremiumโ pricing for same-day service.
Upsell Smartly After fixing a leak, offer a whole-house plumbing inspection ($99 value). Conversion rate: ~40%.
Get Listed on Google Claim your Google Business Profile. Add photos, respond to reviews, and post weekly updates.
Build Recurring Revenue Launch a โPlumbing Health Planโ with bi-annual inspections, discounts, and priority scheduling.
Reduce Customer Acquisition Cost (CAC) Ask happy clients for referrals (offer $25 gift cards). Referral leads convert at 70%+ vs. 20% for paid ads.
FAQ: Common Questions About Plumbing Business Income
Q1: Do plumbing business owners make more than employed plumbers?
Yesโtypically. 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 6โ12 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: Whatโs the biggest expense for small plumbing companies?
Labor and marketing dominate. A two-person team spends ~40% of revenue on wages and 15โ20% on marketing. Smart owners reinvest early profits into automation to reduce both over time.
Q4: Can you run a plumbing business part-time?
Yesโmany 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 essentialโleaks, clogs, and broken water heaters donโt 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 profitโdepending 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 youโre 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 selfโand your bank accountโwill thank you. ๐ง๐ง
Leave a Reply