Thinking about starting a plumbing business—or already running one and wondering if you’re on track financially? You’re not alone. Many entrepreneurs and skilled tradespeople ask, “How much does the owner of a plumbing company make?” The answer isn’t one-size-fits-all, but understanding the real numbers, influencing factors, and industry benchmarks can help you set realistic expectations and build a profitable future.
What Is the Average Income for a Plumbing Company Owner?
According to the U.S. Bureau of Labor Statistics (BLS) and industry reports from sources like IBISWorld and HomeAdvisor, the average annual income for a plumbing business owner in the United States ranges from $50,000 to $150,000+. However, top-performing owners in high-demand markets can earn $200,000 or more annually—especially if they operate efficiently, scale their teams, or offer premium services like emergency plumbing or smart-home installations.
Unlike salaried plumbers (who earn a median of $60,090/year as of 2024), business owners’ incomes depend heavily on overhead, pricing strategy, customer volume, and operational efficiency.
Key Factors That Influence a Plumbing Business Owner’s Earnings
Several variables determine how much you can realistically make as a plumbing company owner:
1. Location, Location, Location
Urban areas like New York, Los Angeles, or Chicago often command higher service rates due to cost of living and demand.
Rural areas may have lower competition but also lower pricing power and fewer high-value jobs.
Example: A plumbing business in Austin, TX, might average $125/hour for labor, while one in rural Mississippi may charge $75/hour.
2. Business Model & Services Offered
Residential-only plumbers typically earn less than those offering commercial contracts, 24/7 emergency services, or specialized installations (e.g., tankless water heaters, gas lines).
Adding maintenance plans or subscription services creates recurring revenue—boosting annual income by 15–30%.
3. Team Size & Operational Efficiency
Solo owners keep 100% of profits but cap their earning potential by time.
Owners with 3–5 technicians can scale revenue to $500K–$1M+ annually—while taking a management role and drawing a salary plus profit share.
4. Pricing Strategy
Undercharging is common among new owners. Industry benchmarks suggest $80–$150/hour for standard plumbing labor in most U.S. markets.
Flat-rate pricing (vs. hourly) often increases perceived value and profit margins.
💡 Pro Tip: Use software like Jobber or ServiceTitan to track job profitability. Many owners discover their “busy” days aren’t actually profitable due to hidden costs like fuel, admin time, or callbacks.
Real-World Case Studies: What Actual Owners Earn
Case 1: Solo Operator in Ohio
Years in business: 7
Services: Residential repairs, water heater installs
Annual revenue: ~$180,000
Net profit (after expenses): ~$78,000
Takeaway: Steady income, but limited growth without hiring.
Case 2: Growing Team in Phoenix, AZ
Team: 1 owner + 4 licensed plumbers
Services: Emergency, commercial, repiping
Annual revenue: $950,000
Owner’s take-home (salary + profit): ~$195,000
Takeaway: Scaling = higher earnings, but requires systems and management.
Source: IBISWorld U.S. Plumbing Services Industry Report (2024), HomeAdvisor Contractor Survey
Note: Profit margins above 20% are achievable with low overhead, efficient scheduling, and upselling high-margin services (e.g., water filtration systems).
How to Increase Your Plumbing Business Income (Step-by-Step)
Want to move from average earnings to top-tier profits? Follow this actionable roadmap:
Audit Your Current Pricing Compare your rates to local competitors. If you’re below market, raise prices by 10–15%—most customers won’t notice if service quality is high.
Add Recurring Revenue Streams Launch a Plumbing Maintenance Club ($15–$25/month per household). A base of 300 members = $4,500–$7,500/month in predictable income.
Hire Your First Technician Once you’re consistently booked 4+ weeks out, hire help. Use their labor to serve more customers while you focus on sales and operations.
Optimize Your Online Presence 87% of homeowners search online before hiring a plumber (Google, 2024). Claim your Google Business Profile, collect reviews, and run targeted local ads.
Track Every Expense Use accounting software (e.g., QuickBooks) to monitor cost per job. Cut waste in fuel, supplies, or inefficient routes.
Upsell Smartly Train your team to identify add-ons: “While we’re here, your water pressure is low—would you like us to check for pipe corrosion?” This can boost job value by 20–40%.
Common Misconceptions About Plumbing Business Income
❌ “All plumbers get rich.” Reality: Many struggle with cash flow, especially in the first 2–3 years.
❌ “More jobs = more profit.” Reality: A few high-value, well-priced jobs often beat 10 rushed, low-margin calls.
❌ “You need a huge team to earn six figures.” Reality: A disciplined solo owner in a strong market can clear $100K+ with smart systems.
FAQ: How Much Does the Owner of a Plumbing Company Make?
Q1: Do plumbing business owners make more than employed plumbers?
A: Yes—if the business is well-run. While employed plumbers cap out around $80K–$100K (unless in union or specialized roles), owners can exceed $150K by leveraging teams, pricing, and scalability.
Q2: How long does it take to become profitable as a plumbing business owner?
A: Most break even within 6–18 months. Success depends on startup costs, marketing, and local demand. Those with prior industry experience often profit faster.
Q3: What are the biggest expenses that reduce owner income?
A: Top costs include:
Vehicle maintenance & fuel
Insurance (liability, workers’ comp)
Marketing (ads, SEO, lead fees)
Employee wages & payroll taxes
Tools & equipment replacement
Q4: Can you run a plumbing business part-time?
A: Yes—many start part-time while keeping a day job. However, scaling beyond $60K/year usually requires full-time focus due to scheduling, customer service, and compliance needs.
Q5: Are plumbing businesses recession-proof?
A: Largely, yes. Plumbing is essential—leaks, clogs, and water heater failures don’t wait for economic recovery. In fact, during downturns, homeowners often repair instead of replace, increasing service demand.
Q6: What certifications help increase earnings?
A: Master Plumber license, backflow prevention certification, and gas line certification open doors to higher-paying commercial and municipal contracts.
Conclusion: Your Earnings Reflect Your Strategy
So, how much does the owner of a plumbing company make? The range is wide—but your position within it is within your control. With smart pricing, efficient operations, and a focus on customer retention, you can build a plumbing business that delivers not just a living, but true financial freedom.
If you found this breakdown helpful, share it with a fellow tradesperson on Facebook, LinkedIn, or Instagram! The more skilled professionals understand their earning potential, the stronger our industry becomes.
Ready to level up your plumbing business? Start with one change this week—review your pricing, ask for your next review, or sketch out a maintenance plan. Small steps lead to big profits.
Leave a Reply