In the plumbing trade, doing good work is only half the job; pricing that work correctly is what keeps your business profitable and sustainable. Whether you’re operating solo, managing a crew, or scaling your operations, the way you calculate and communicate your rates can significantly impact your bottom line.
In this guide, we’ll walk through key pricing factors, break down how to calculate your rates, and share actionable steps to help you charge with confidence.
Key Factors That Affect Your Plumbing Service Pricing
Australian plumbing businesses operate in a complex environment where costs vary, customer expectations shift, and job types range from quick callouts to full system installations. Here are the most important variables that influence what you should charge:
- Location – Rates differ significantly by region. For example:
- Adelaide metro plumbers may charge $80–$180/hr
- Sydney metro plumbers may charge rates as high as $250/hr
- Remote locations could warrant higher costs due to travel and scarcity
- Experience & licensing – Senior, licensed plumbers can justifiably charge more. Apprentices or juniors should be factored into blended hourly rates if working in teams.
- Job complexity – Installing a new hot water system isn’t the same as fixing a leaking tap. Jobs with higher technical risk, regulatory compliance, or labour hours must be priced accordingly.
- Material and overhead costs – Material prices fluctuate, especially copper and imported fittings. You’ll also need to include tools, insurance, software, and marketing costs.
- Emergency & after-hours work – These services should always attract a premium. Make sure your rates reflect availability and urgency, especially on nights and weekends.
📌 Pro Tip: Use these factors as pricing levers, not just cost considerations. They help justify your value to clients.
5 Steps to Calculate Your Plumbing Rates
Growing your business means covering your costs, paying yourself properly, and maintaining a competitive edge. Here’s how you can do it step-by-step.
1. Calculate Your Business Costs
Before you can confidently set your prices, you need to understand what it actually costs to run your plumbing business. Too many trade businesses undercharge because they forget to include all their overheads, or worse, they go with the market rate without knowing if it covers their expenses.
Break your costs into three buckets:
Example: If you spend $2,000/month on fixed costs (tools, insurance, software, etc.), that’s $24,000 per year. Add variable expenses and give yourself a buffer, typically 10–15%, to handle surprises.
📌 Pro Tip: Use a solution like AroFlo to track costs automatically in real time. Manual spreadsheets quickly become outdated and unreliable.
2. Determine Your Hourly Rate
Once you understand your costs, the next step is to figure out your base hourly rate, the minimum you need to charge to cover expenses and make a profit.
Formula to Calculate Hourly Rate:
(Total Annual Overheads + Desired Annual Profit) ÷ Billable Hours = Base Hourly Rate
Example:
- Annual Overheads (Fixed + Variable): $90,000
- Target Profit: $60,000
- Billable Hours per Year: 1,500
($90,000 + $60,000) ÷ 1,500 = $100/hr
This gives you a baseline rate; you’ll still adjust it for job type, urgency, and other pricing factors.
Common Mistakes to Avoid:
Many plumbers forget to exclude non-billable hours (quoting, travel, admin). If you work 40 hours a week but only 25 are billable, your rate needs to account for that. Otherwise, you're working more for less.
📌 Pro Tip: Track your time accurately with AroFlo’s built-in job timers and timesheets. You can then review how long tasks take and improve future estimates.
3. Choose a Pricing Model
How you structure your pricing is just as important as how much you charge. Customers respond differently to hourly rates, fixed quotes, or bundled service packages, so selecting the right pricing model can improve both your conversion rate and profitability.
Hourly Rate vs. Fixed Pricing
Both models have their place in a plumbing business. The key is to apply them strategically:
Example: A leak detection job may be unpredictable—use hourly rates. But a toilet installation is repeatable—offer a fixed price.
📌Pro Tip: Always define what's included in a fixed price to avoid scope creep.
Call-Out Fees
It’s common for plumbers in Australia charge call-out fees. These fees are expected by many customers and help cover your time and travel, especially for small jobs that don’t result in major work. A call-out fee usually averages between $60 - $120, but can vary depending on time of day, or which day (for example, public holidays may be charged at a higher rate).
These can be waived if the customer proceeds with the job or added separately. Just make sure you're transparent.
After-Hours & Emergency Pricing
Your time is more valuable at 10 p.m. than at 10 a.m.. Make sure you’re charging accordingly:
- After-hours rate: 1.5x standard
- Weekend/emergency rate: 2x standard
Example: If your standard rate is $110/hr, your weekend emergency rate might be $220/hr.
📌Pro Tip: Using a job management system with automated timesheets, like AroFlo, can take the headache out of managing multiple hourly rates and overtime. The software automatically accounts for changing overtime rates throughout the day, adjusting charge rates and invoices to match.
Bundled Services & Packages
Bundling services can:
- Increase average job value
- Create recurring revenue
- Add perceived value for customers
Examples:
- “Annual plumbing check” package (includes 2 site visits + 10% off call-outs)
- Kitchen & bathroom upgrade bundle
These models also make it easier to upsell or cross-sell without relying on high-pressure tactics.
📌 Pro Tip: Track which pricing models convert best and are most profitable using AroFlo’s reporting tools. Don’t guess, use your own business data.
4. Stay Competitive Without Undercutting
It’s tempting to undercut competitors to win work, but consistently charging below market rates erodes your profit and damages industry standards. Instead, focus on value-based pricing strategies that allow you to compete on quality, not price alone.
Research Competitor Pricing
Start by gathering pricing intel using online directories, competitor websites, or the latest plumbing price list. You don’t need to match their prices, but you do need to know where you stand.
- Benchmark rates by region (metro, regional, rural)
- Track competitors who offer flat rates or call-out specials
- Watch for included extras (e.g., free quotes, warranties)
Highlight Your Unique Value
Use your marketing channels to show what sets your business apart:
- Are you licensed for gas, backflow, or roof plumbing?
- Do you offer guarantees, upfront pricing, or same-day service?
- Are you on time, every time?
A confident pricing strategy is easier to justify when backed by a strong brand. Learn how with this guide to plumbing marketing.
Educate Clients
Many customers default to the cheapest quote because they don’t understand what’s involved. Combat that with education:
- Explain what's included in your quote
- Highlight safety, compliance, and durability
- Point out red flags with too-good-to-be-true pricing
📌 Pro Tip: Use price anchoring by showing three levels of service (basic, standard, premium). Most customers will choose the middle option.
Metro vs. Regional Pricing
Don’t fall into the trap of charging city rates in a rural area, or vice versa. If you're servicing both, create pricing tiers based on:
- Travel time and fuel costs
- Local competition and demand
- Availability of materials and suppliers
For example, Sydney plumbers may charge $120/hr while regional tradies average $90/hr. Adjust your pricing accordingly.
Further reading: Learn more about pricing strategy for tradies and how to leverage price anchoring to influence buyer decisions.
5. Communicate Pricing to Customers Effectively
Even the most accurate pricing can fall flat if customers don’t understand or trust it. Your ability to explain pricing clearly is just as important as the number itself.
Pricing Communication Tips
- Use itemised estimates: Break down labour, materials, and call-out fees. Create a cost estimate template to ensure you're maximising your profit potential on every job you do
- Set clear terms: Include deposits, cancellation policies, and timeframes
- Leverage visuals: Add photos of issues or past jobs to explain why a repair is needed
- Deliver quotes professionally: Use digital templates and get signed approval fast
Want to go a step further? Use this free plumbing contract template to lock in job terms and protect both parties.
What If Customers Push Back on Price?
It’s normal for clients to ask, “Why does it cost that much?”
Here’s how to respond with confidence:
- Explain the breakdown: Labour, materials, travel, emergency fees, and transparency builds trust.
- Highlight value: Point out warranties, licensed service, faster turnaround
Offer options: If appropriate, present a more basic alternative (see: price anchoring)
If they’re still not convinced, walk away confidently. Undervaluing your work to win low-margin jobs is rarely worth it.
📌 Pro Tip: AroFlo lets you quickly revise quotes and re-send them, helpful when adjusting to scope changes.
How Often Should You Review Your Plumbing Rates?
Your pricing shouldn’t stay static, especially in a market where costs can change rapidly.
Here’s when to reassess your pricing strategy:
- Every 6–12 months: Build in a routine annual (or biannual) pricing review
- When material or fuel prices spike: If copper, fuel, or key components rise in cost, you may need to adjust your rates to maintain profit margins. Tip: AroFlo integrates with catalogues from popular wholesale suppliers to show real-time pricing, ensuring your quotes are always accurate.
- When you hire new staff or subcontractors: Labour costs affect your baseline hourly rate
- When introducing new services: Bundles, emergency work, or warranty options should have their own margins
Use your job costing reports in AroFlo to identify patterns in margin erosion, underquoted jobs, or overtime blowouts. Adjust rates proactively to protect your bottom line, before it affects your cash flow.
📌 Pro Tip: Include a clause in your service agreements that outlines how and when rate changes may occur. This prepares clients for future updates and avoids friction.
Price Your Plumbing Services Right
Pricing is the foundation of a sustainable, scalable plumbing business. When you understand your true costs, choose the right pricing model, and communicate your value clearly, you’ll attract the right clients, win more profitable jobs, and avoid the trap of racing to the bottom.
Running a plumbing business doesn’t have to involve endless admin. AroFlo helps plumbers like you manage jobs, quote faster, track costs, and optimise your profitability, all from one easy-to-use platform. Whether you’re just getting started or scaling your team, AroFlo is the trusted partner of thousands of plumbing businesses across Australia.
Looking to learn more about how AroFlo can simplify cost tracking and quoting for your team? Book a demo today to discover how AroFlo can help grow your business.
Looking for More Ways to Grow?
Check out our guides on:
- Building a profitable plumbing business
- Creating a winning plumbing marketing strategy
- Mastering your pricing strategy with confidence
