The 3 Keys To Plumbing Business Success

Pillar #1: The Right Price

Why Pricing Matters

Your pricing can make or break your business. Many plumbing business owners don’t fully understand their hourly rates, leading to low profits or even losses. If you’re setting your rates based on guesswork or competitor comparisons, you’re not only hurting your bottom line—you’re shortchanging your team, customers, and ultimately, yourself.

The 3 Pricing Hacks to Avoid

1. The Pricebook Swipe: Many plumbers simply take the price book from a previous employer and set their rates a few dollars lower to “win” business. This shortcut may seem smart, but it rarely reflects the true cost of running your own business.
2. The Supply House Chatter: Listening to what other plumbers charge at the supply house and setting your rates based on their numbers is just as risky. Different plumbing businesses have unique costs and profit needs, so copying rates only leads to confusion and underpricing.
3. The Pull-It-Out-of-Your-Arse Method: This is where you guess a price based on the neighborhood, the customer’s car, or just your mood at the moment. It might feel quick and easy, but inconsistent pricing damages your credibility, profit margins, and the confidence of your customers.

Honest Hourly Rate: All Time, Expenses, and Profit Included

Your honest hourly rate is the real cost of running your business. It factors in all the time, expenses, and profit necessary for you to thrive. This isn’t just the cost of doing a particular job—it’s the cost of sustaining your business, from equipment to employee benefits to taxes. Including every expense in your calculations ensures your business is financially sustainable.

Present Your Pricing as “Flat-Rate”

Using flat-rate pricing instead of time-and-materials simplifies the customer experience. It’s transparent, clear, and comforting for customers. When you charge a flat rate, customers know exactly what they’re paying for without worrying about unpredictable time charges. Plus, it aligns with nearly every other purchase they make, which reduces customer anxiety and adds value to your service.

Pillar #2: The Right People

Finding the Right Plumbers: Hire Character, Not Skill

When it comes to hiring plumbers, remember: character comes first. Skills can be taught, but character and work ethic are much harder to instill. A plumber with integrity, reliability, and a customer-focused mindset will represent your business well and help build a great reputation. Always be on the lookout for high-quality candidates and remember that recruiting is an ongoing process. Keep building your team, and you’ll be ready for anything.

Serving the Right Customers: Lots of Them, and They Value Their Time

The right customer is more than just someone who needs plumbing work done. Ideal customers value their time over cost and appreciate quality, professional service. This is why residential service work is the golden ticket for plumbing business owners. Residential customers call you for immediate problems and want their issues resolved quickly and efficiently. They are often willing to pay a premium for a service that saves their time and gives them peace of mind. Unlike commercial accounts or big jobs where payments may take months, residential customers typically pay immediately, providing cash flow and stability.

Pillar #3: The Right Purpose

Your Purpose: It Ain’t About Plumbing

One thing every plumbing business owner needs to understand is that the purpose of a plumbing business isn’t just to “do plumbing.” Your purpose for having a plumbing business must be greater than the day-to-day work. It could be providing a good life for your family, giving back to the community, or creating a legacy you can pass on. Knowing your “why” will keep you going on tough days and guide your business toward success.

The Business Purpose: To Make Money

The core purpose of any business is to make a profit. While that might seem obvious, many plumbers feel guilty or hesitant about charging what they’re worth. If you’re not making money, you don’t have a business—you have a very demanding job. Embracing profit as a goal means you’ll be able to hire better people, invest in better equipment, and serve more customers, all while providing financial security for yourself and your family.

Bonus Insight: You Were Never Taught the Business SideMost plumbers are trained to be skilled craftsmen but rarely taught how to run a business. This lack of business knowledge leads many plumbers to struggle with pricing, hiring, and managing day-to-day operations. Taking the time to learn business skills—whether through mentorship, resources, or programs like the Success Academy—can be the difference between a struggling plumbing job and a thriving, profitable plumbing business.

Conclusion

If you get these three pillars right—the right price, the right people, and the right purpose—everything else will fall into place. Embrace the mindset shift from plumber to business owner, and you’ll be well on your way to building a successful plumbing business that doesn’t just survive but truly thrives.