In this episode of Potty Talk LIVE, host Richard Behney, The Million Dollar Plumber, dives into the secrets of maximizing profits in your plumbing business. Whether you’re just starting out or looking to take your established business to the next level, this is a must-watch for plumbing pros who want to grow their earnings without burning out. Discover actionable strategies to boost your bottom line, avoid common profit leaks, and set your business up for long-term success. Richard shares his proven methods, real-world examples, and insider tips to help you take control of your finances and start making serious bank!
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3 Golden Nuggets
- Charge An Honest Hourly Rate
- Serve Good-Paying Customers
- Prioritize For Profit
How to Make Bank with Your Plumbing Business: 3 Strategies to Maximize Your Profits
Running a plumbing business isn’t just about working hard—it’s about working smart. If you’re tired of scraping by and ready to start making serious money, you need to change your mindset and prioritize profits.
In this blog, we’ll break down three proven strategies that can transform your plumbing business. These are the same principles we teach at Million Dollar Plumber to help plumbing entrepreneurs double or even triple their income in 30 days.
#1: Charge an Honest Hourly Rate
The Problem: You’re Not Charging Enough
One of the most common mistakes plumbing business owners make is setting their prices too low. You’re covering the job itself, but are you accounting for all your costs?
The Fear: “My Customers Won’t Pay More”
Many plumbers worry that higher rates will scare away customers or that competition will undercut them. This fear keeps them stuck in a cycle of low prices and low profits.
The Fix: Calculate an Honest Hourly Rate (HHR)
Your hourly rate needs to cover three essential components:
- All Your Time: This includes not just time on the job but everything else—driving, paperwork, and scheduling.
- All Your Expenses: Account for every business cost, from truck fuel to advertising, uniforms, and future growth investments.
- Profit: A minimum of 10% profit should be included. Remember, profit isn’t a dirty word—it’s the reward for your risk and hard work.
💡 Pro Tip: When you charge what you’re worth, your customers will value your service more—and you’ll finally stop robbing yourself (and your family).
#2: Serve Good-Paying Customers
The Problem: You’re Working for the Wrong Customers
Are you stuck doing contractor work, home warranties, or low-paying commercial jobs? These customers prioritize cost over quality, leaving you with slim margins and late payments.
The Fear: “I Have to Take Every Job”
Plumbers often feel like they can’t afford to turn down work. But taking on low-value jobs means you’re stuck in survival mode, unable to grow your business.
The Fix: Focus on Residential Service Customers
Residential service customers are the bread and butter of a profitable plumbing business. Here’s why:
- They value their time and are willing to pay for quality.
- They pay on the spot, unlike contractors who might delay payment for months.
- They’re abundant—there are tens of thousands of potential customers in your area!
💡 Pro Tip: Stop chasing unreliable clients and focus on Mrs. Jones, the homeowner who just wants her day back.
#3: Prioritize for Profit
The Problem: You’re Taking Jobs as They Come
Many plumbing business owners fall into the trap of scheduling jobs in the order they’re received, regardless of profitability. This leads to wasted time and missed opportunities.
The Fear: “Rescheduling Customers Is Poor Service”
You might think that prioritizing certain jobs over others will lead to bad reviews or unhappy customers. But this simply isn’t true—if you handle it professionally, customers are willing to wait.
The Fix: Triage Your Calls
Not all plumbing jobs are created equal. To maximize profits, you need to prioritize high-value jobs like water heater installations, main drain repairs, or sump pump replacements.
- Train your CSR (or yourself) to recognize and schedule money-making jobs first.
- Politely reschedule less profitable calls when necessary.
💡 Pro Tip: Mrs. Jones doesn’t care about being “first”—she cares about having her plumbing problem solved. Focus on maximizing profits, not appeasing every caller immediately.
Making bank with your plumbing business doesn’t require reinventing the wheel. By charging an honest hourly rate, serving the right customers, and prioritizing for profit, you can transform your business into a money-making machine.
Richard’s Call to Action
Need a little more help? Why not join the Million Dollar Plumber Success Academy and learn everything you need to know to grow your plumbing business and have a life too–all from the comfort of your home!
