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You’re skilled at what you do: managing water, drainage, gas fittings, fixing the problems that most people don’t want to think about. But if you’re running your own plumbing business (or you aspire to), knowing the hourly rates of plumbers is an important part of the process that supports your business growth.
It’s tempting to set a price, then “see what the market accepts.” But that approach often leaves money on the table, or puts you chasing too many jobs just to stay afloat. By understanding what plumbers are charging across Australia, what influences those rates, and how to build a model for your own business, you’ll be better placed to grow.
Read on as we walk you through the practical steps to set competitive pricing without undercutting yourself.
Why Hourly Rates Matter for Plumbing Businesses
Setting the right plumbing hourly rate can determine how profitable each job is, the kind of customers you attract, and how sustainable your business will be over time.
Get it right, and your rate reflects your skill, covers your true costs, and positions you for steady growth. Get it wrong, and even a busy schedule can leave you struggling to make ends meet.
When setting your rate, think about how it affects your bottom line, the image you project to customers, and your ability to compete and grow over time.
Profit and Business Health
When you quote a job based on an hourly rate, that rate must cover all your costs - yourself (and any staff), tools, materials, vehicle depreciation, travel time, risk, insurance, admin, and overheads. If you treat your rate as just “what I want to earn per hour,” you risk overlooking hidden costs.
Reputation and Positioning
Your rate sends a message in the market. Setting your rate too low might attract bargain-hunters, but they may also expect discounting, expect you to be less professional, or cut corners. Charging a well-justified, transparent rate says: “I know what I’m doing, I value my work and I stand by it.” That can lead to better-quality work, fewer rushed jobs, and a stronger reputation.
Competitiveness and Growth
Your rate also helps you segment your market. Are you aiming for high volume, basic residential repair? Or specialist commercial work with premium pricing? The hourly rate plays into that strategy. If you keep your rate too low, you may miss out on profitable niches or fixed-price opportunities. If too high, you might lose the steady stream of jobs. Getting it right positions you for sustainable growth.
Breaking Down Hourly Rates for Plumbers in Australia
Here’s a quick look at what plumbers are charging per hour and earning each year across Australia, so you’ve got a solid benchmark when setting your own rates.
*Disclaimer: All data sourced from publicly available Australian plumbing industry reports and job boards, including hipages, Yellow Pages, Seek, PayScale, Indeed, Building Institute, and SalaryExpert. Figures represent indicative national averages only. Actual rates may vary by location, service type, and experience. Emergency call-out examples are based on Hipages and Yellow Pages national cost data. This content is for informational purposes only and does not constitute financial or employment advice.
Additional Considerations for Setting Plumbing Rates
Your hourly rate doesn’t exist in a vacuum. There are additional factors you need to embed in your pricing logic.
Call-Out Fees
A call-out fee is a fixed amount you charge to attend a job, even if you don’t complete work, or work is minimal. It covers travel, mobilization, and initial assessment, and helps offset “zero-productive” time. When setting your call-out fee, consider:
- Average travel time and distance
- Potential for no work after arrival
- The “minimum” amount you need to earn to make attendance worthwhile
- Whether the fee is waived as part of normal hours or discounted for first-time customers
Emergency and After-Hours Rates
Emergency work always carries a premium: you’re giving up flexibility, often responding quickly, possibly out of hours, and sometimes into the night.
When calculating your after-hours rate, factor in: travel at odd hours, higher overheads (on-call, overtime), reduced efficiency (workers may be tired or less-resourced), and risk.
You might structure rates like: “Standard hourly rate + emergency surcharge” or a flat premium for after-hours.
Fixed-Rate Jobs
Sometimes a job is better quoted as a fixed price rather than paying by the hour. For example, major installations, full bathroom renos, hot water system replacements, or commercial plumbing contracts. The benefits of fixed-rate quoting include: clarity for the customer, ability to build in a margin and buffer for materials/time. The risks include: underestimating time or cost, variable job complexity, and scope creep.
If you’re quoting a fixed rate, you should still know your baseline hourly cost (what you would have earned by time & materials) so you can decide whether fixed pricing is profitable. Track actual hours to refine future quotes.
Experience and Specialization
Experience matters, not just in terms of being qualified but in terms of reputation, speed, problem-solving ability, equipment, and demand. A plumber with 20 years’ experience and a niche (say fire-protection systems, or large commercial pipelines) can command rates well above a general residential plumber.
Similarly, specializations (gas fitting, roofing, sprinkler systems, and large commercial job management) allow you to justify higher rates because you are bringing higher value, higher risk, or regulatory license risk.
When reviewing your rate, ask:
- Does my work save the client money/risk/time?
- Does it require specialist equipment or certification?
- Are my overheads higher because of that specialization?
If yes, your rate should reflect that.
How to Set Competitive Rates Without Undercutting Yourself
Here is a step-by-step approach you can use to set your plumber's hourly rate, suitable for a one-person business or a growing team:
- Calculate your baseline cost per hour
- Estimate how many “billable hours” you realistically work in a year (e.g., if you run a one-person business and work 40 hours/week for 48 weeks, that’s ~1,920 hours, but you may only bill 1,200-1,400 hours after travel, admin, and downtime).
- Sum your costs: your labor expectation, vehicle fuel/maintenance, tools, insurance, licenses, materials overhead, marketing/admin, tax & super.
- Divide your total annual costs by your expected billable hours = your minimum “cost-to-business” hourly rate.
- Estimate how many “billable hours” you realistically work in a year (e.g., if you run a one-person business and work 40 hours/week for 48 weeks, that’s ~1,920 hours, but you may only bill 1,200-1,400 hours after travel, admin, and downtime).
- Add a profit margin
Once you’ve calculated your base hourly cost (the amount that covers your wages, overheads, and expenses), it’s time to decide what you’ll add on top as profit. Your profit is what funds investment in new tools and vehicles, buffers against slow periods, and supports business development.
Many plumbing businesses target a net profit margin between 15–30%, depending on size, structure, and service type. ACT Tax Group notes that this range keeps businesses both competitive and profitable. Some small businesses in high-demand areas may aim higher, while larger companies with more staff and vehicles may work closer to the lower end of that range due to increased overheads.
- Benchmark against market rates
Look at the data in your region (refer table above or local networks). If your target rate is well below average, you might question if you’re undervaluing; if above average, ask what additional value you’re delivering (faster service, premium promise, contract guarantee, specialization). Knowing competitor rates helps position yourself. - Segment your pricing
Not all work is the same. You might have:- Standard hourly rate (normal hours, residential)
- Call-out fee + standard hourly rate
- After-hours/emergency hourly rate (premium)
- Fixed-price jobs (where you supply a quote based on the job scope)
- Special rate for loyal/contract customers (but avoid using this to undermine your standard rate).
- Communicate your pricing clearly
Create a plumber’s price list for customers: call-out fee, travel charge (if any), standard hourly rate, after-hours rate, and typical fixed job pricing examples. Being transparent builds trust and avoids surprise price objections later. - Review regularly
Costs change: fuel, materials, insurance, and labor rates rise. Review your pricing annually (or sooner if costs jump). Use actual job data to check:- Did you meet your margin?
- How many hours did you spend versus what you quoted?
- Are you making the profit you planned?
- Use tools to track performance
Manual spreadsheets can work, but when you’re busy, they often fall behind. Using software helps you track job cost, labor time, materials, and profitability in real time, giving you prompt feedback so you can adjust your pricing, not just guess.
How AroFlo Helps Plumbing Businesses Thrive
By understanding what other plumbers charge, calculating your costs, factoring in your specialisation, and managing your business with purpose, you can set an hourly rate that works for you and your clients.
Managing your hourly rates effectively depends on accurate, up-to-date data, and AroFlo brings it all together. Its integrated tools for job estimating and quoting ensure your prices are based on real labor and material costs, not rough guesses. Plus, the AI Bill Scanner is a really handy tool that can save you hours of admin by automatically processing supplier invoices and matching costs to jobs, giving you a true picture of your margins in real time.
Every completed job even feeds back into reporting dashboards, showing you which services earn the highest returns, where costs are creeping up, and which jobs deliver the strongest margins. That level of visibility helps you refine your pricing strategy with confidence, ensuring your rates are fair, competitive, and profitable.
If you’re ready to spend less time on paperwork and more time growing your business, book a free AroFlo demo today. You’ll see how smarter job management leads to smarter pricing and better profits.
