Do you know how much a plumber makes per hour?
If you are looking for a trade to start a successful career, plumbing can be an excellent option for you. With new construction being built every day and the constant need to keep plumbing systems in shape in every home, plumbers are always in high demand. So, if you are looking for a job that ensures a constant cash flow, you should consider taking up plumbing.
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With that being said, many people do not approach plumbing, thinking it is a less-paying job. But if you have even an inkling of the current master plumber salary or the growth potential of the plumbing business, you would not think twice about taking up the necessary training and certifications.
In this blog, you will find everything about the financial opportunities of the plumbing industry, including how much do plumbers make per hour, how much a plumbing project costs, how much profit a plumbing company can make per year, and more.
You will also learn important things like how to price a plumbing job, how to calculate a plumbing job cost, etc.
So, why wait? Read on to find out all about your dream career and get ready to earn some handsome money.
Apprentice, Journeyman, and Master Plumber Salary
Before we go down on the details of the plumbing career, you might want to know up front whether this is at all a profitable path. So, let’s start with the very basic question—how much do plumbers make a year?
According to a report from Indeed Career Guide, the national average salary in the USA for a plumber is $56,216 per year. This range may vary anywhere between $33,958 and $93,066. Some plumbers work overtime hours over their typical 40-hour work weeks, earning an average of $6,750 per year.
This figure, however, is variable depending on different factors, especially experience. As you must be aware, there are three different types of plumbers, i.e., apprentices, journeymen, and master plumbers. The salary ranges also differ accordingly. The higher your level, the higher your salary will be. That means an apprentice’s salary will never be the same as a journeyman’s, and a journeyman’s salary will always be less than a master plumber salary.
On average, the salary range for different plumbing job levels is as follows:
- Apprentice Salary: $32,784-$50,400 per year
- Journeyman Salary: $55,500-$82,633 per year
- Master Plumber Salary: $77,890-$107,383 per year
Plumber Salary by State
The above figures indicate how much do plumbers make a year in the USA. While this varies based on the experience level, the salary range also varies depending on the area you are located in. Different states offer different salaries to plumbers.
Plumbing Business: Profit and Revenue
Becoming a plumber gives your career great flexibility. If you have the required licenses and skills, you can always find a job as an employee at any reputable plumbing business in your area and make a steady income. But in case you are not satisfied with working for an employer and instead want to start your own business, as a plumber, you can do that as well.
This may get you thinking—what if running a plumbing business is not as profitable? Of course, running your own business always involves a risk factor, especially when it comes to profitability. But let us assure you, plumbing is one of the most profitable businesses in the current field service industry.
The gross income for plumbing companies may vary. But as of 2023, the plumbing industry in the US is worth approximately $124.2 billion. Within the period of 2017 and 2022, the market experienced annual growth of 3.2% . With the global market also expanding at a staggeringly fast pace, it is expected that the profitability of the plumbing industry will keep increasing in the US as well.
Plumbing Business Profit margin
If you are aiming for sustainability, it does not matter how much is a plumbing company is worth. What really matters is how much profit margin you can maintain in your business.
There are two kinds of profit margins in a business—gross profit and net profit. Gross profit margins are how businesses should measure performance in each of their different departments (plumbing installation, service and repair, maintenance, new construction, etc.), whereas net profit margins are how they should look at performance across their entire business.
According to a study held by market experts at Columbia University, plumbing businesses in the USA must aim for an average gross profit margin of 60%-62% across all their services. If they can achieve this mark, it will enable them to hit the 17%-20% net profit mark. Experts say that anywhere from 10% to 20% profit margins for plumbing business are considered healthy and reasonable. However, this may not be a rational goal for plumbing startups. But once the business picks up pace, this is what a plumber should aim for.
How to Calculate Profit Margin in A Plumbing Business
Profit margin is a measure of a company’s profitability and is calculated by dividing the profit (or net income) by the revenue (or sales). There are a few different types of profit margins you can calculate, including gross profit margin, operating profit margin, and net profit margin. Here’s how to calculate each of them:
- Gross Profit Margin
Gross Profit Margin = (Gross Profit / Revenue) * 100
Gross profit is the total revenue minus the cost of goods sold (COGS). It represents the profit a company makes after deducting the direct costs of producing or delivering its products or services.
- Operating Profit Margin
Operating Profit Margin = (Operating Profit / Revenue) * 100
Operating profit is the profit a company earns after subtracting both COGS and operating expenses (like salaries, rent, utilities, etc.). It measures the profit from the core operations of the business.
- Net Profit Margin
Net Profit Margin = (Net Profit / Revenue) * 100
Net profit is the final profit a company earns after deducting all expenses, including taxes and interest. It represents the overall profitability of the company. To calculate your profit margin, first you need to figure out how much you are spending on overhead costs. A plumbing company’s overhead costs include equipment, rent, supplies, fuel, material costs, journeymen’s salary, apprentice salary, master plumber salary, maintenance, and more.
Once you have your expenses sorted out, follow these steps to calculate your profit:
- Determine the relevant profit figure (gross profit, operating profit, or net profit) from the company’s financial statements or income statement.
- Find the total revenue (or sales) from the same financial statement. This is typically the top line of the income statement.
- Use the appropriate formula for the specific profit margin you want to calculate (e.g., gross profit margin, operating profit margin, or net profit margin).
- Multiply the result by 100 to express the profit margin as a percentage.
Here is an example:
Suppose a company has a net profit of $50,000 and total revenue of $500,000.
Net Profit Margin = ($50,000 / $500,000) * 100 = 10%
So, the net profit margin for this company is 10%, which means it earns 10 cents in profit for every dollar of revenue generated.
What are the Most Profitable Services for Plumbers?
Now that you know things like plumbers’ salaries, profitability, and plumbing owner salary, you must be wondering how to make money from plumbing jobs.
Well, the formula is fairly simple. You get clients, they ask you for plumbing services, you complete the job, and you get paid!
But here comes the curveball—-how can you make more money than your competitors?
Plumbing is a highly competitive industry. No matter where you are located, you must have one or more rival companies that are vying for the top spot. If you want to ensure profitability in this cutthroat race, you need to make sure that you are delivering the specific plumbing services that help you get paid more.
Here are the most profitable plumbing services your clients may require:
- Emergency Repairs: Plumbing emergencies, such as burst pipes, major leaks, or sewer backups, often require immediate attention. Emergency plumbing services are usually charged at premium rates, making them highly profitable for plumbers.
- Drain Cleaning: Clogged drains are a common issue in households and commercial properties. Providing drain cleaning services can be profitable, as it’s a frequent problem that requires expertise and specialized equipment to resolve.
- Water Heater Repair and Installation: Water heaters have a finite lifespan and can develop issues over time. Repairing or installing water heaters can be a lucrative service, as it often involves both the cost of the unit and labor charges.
- Bathroom and Kitchen Remodels: Plumbing is a crucial component of bathroom and kitchen remodeling projects. Plumbers can earn a significant income by providing plumbing services for these renovations, which often involve replacing fixtures and reconfiguring plumbing systems.
- Sewer Line Repairs and Replacement: Damaged or collapsed sewer lines require immediate attention, and the repair or replacement of sewer lines can be a high-value service, particularly in older properties with outdated plumbing systems.
- New Construction: Plumbing services for new construction projects, such as residential and commercial buildings, can be profitable. This work involves installing entire plumbing systems from scratch.
- Preventative Maintenance Contracts: Offering preventative maintenance services, such as regular inspection and maintenance of plumbing systems for commercial properties, can provide a steady income stream and build long-term customer relationships.
- Fixture and Appliance Installations: Installing fixtures like sinks, faucets, toilets, and appliances such as dishwashers and refrigerators can be profitable, especially if clients are upgrading to more high-end fixtures and appliances.
- Commercial Plumbing Services: Commercial properties often have more complex plumbing systems, which can lead to higher-paying contracts for maintenance, repairs, and installations.
- Specialty Services: Some plumbers offer specialty services like hydro jetting, trenchless sewer repair, and water treatment system installation. These specialized services can command higher rates due to the expertise and equipment required.
The profitability of these services can also depend on local competition, market demand, and the plumber’s reputation. Additionally, providing excellent customer service and effectively marketing your plumbing business can contribute to your success and profitability in the industry. It’s essential for plumbers to stay updated with industry trends and continuously improve their skills to offer a wide range of services and adapt to changing customer needs.
If you have read this far, you know what kind of profit or master plumber salary you can expect working as a plumber. You also know what kind of plumbing jobs can help you make profit. But earning profit is not enough. You need to increase your profitability if you want to ensure sustainability and business growth.
Nothing else can help you in this regard the way Field Promax does.
Field Promax is a cutting-edge field service management software specifically designed for plumbing businesses of all sizes. Essentially, it helps plumbing business owners streamline their operations, improve efficiency, and ultimately increase profitability. It automates your business processes, including scheduling and dispatching, time-tracking, work order management, monitoring, inventory management, billing and invoicing. It also supports QuickBooks integration to simplify your accounting and bookkeeping processes.
All in all, Field Promax makes running a plumbing business easier, adding more transparency, scalability, and efficiency to your workflow. Being a paperless business software, it saves a lot of overhead costs and thus directly reflects in your profit. But most importantly, Field Promax saves you a lot of valuable time by simplifying admin tasks, which you can then invest in more important tasks, such as growing your business.
For more information contact Field Promax today.