As a plumber, particularly if you’re just starting a plumbing business, one of the burning questions on your mind is probably, "How much should I charge my clients?" Well, we've got some insights to share on how to decide on prices and what you can do to organise the mountain of different costs. Your business, clients, staff, and jobs are unique, and like every tradie, there’s no one-size-fits-all answer to your pricing queries and how they translate to realistic job costing.
To tackle these day-to-day pricing questions and produce realistic, competitive quotes, your trade business needs to create a plumbing prices list. That’s a list of all the services, materials and labour you charge for and the ranges it can cost.
Your plumbing prices list is like a Swiss army knife of job costing. They look useful, and you wonder if they’re worth it, but as soon as you get one, you never want to leave home without it. Well, do work without it.
Simplifying quotes with a plumbing price list means you can process potential jobs quickly and accurately, leading to greater business efficiency. It means your plumbing business and potential/current customers have a reference for all the elements of a job or project. A practical list can even form part of your marketing strategy so leads can review the kinds of prices to expect for the jobs they want.
So, where do you get started and what do you need to create your plumbing prices list?
Key Elements to Include in Your Plumbing Price List
Creating your plumbing price list means assessing many potential costs and charges; every job is different. The work is worth the time, but you might need more time to create a list for every single service, fee and material cost right now. The main thing is you want to start, and there are some essential things you can start with.
Price fluctuations (and we’ll cover those later) mean reviewing and updating your list, so how can you create an effective plumbing price list without adding more complicated admin to your full plate?
Focus on the essentials first, and then go from there. Here are some key elements to help you build your plumbing price list.
Basic Service Fees
No matter the business, you’ve got to be upfront about your fees. No one likes a sneaky fee, and including them on your plumbing price list remind the team to communicate these charges with potential customers.
Most plumbing businesses charge service fees, and these are usually the first costs customers are concerned about. Basic service fees include call-out fees, emergency service fees and quote fees.
If your business has at least one of these fees, lay out the prices and the range depending on time and travel. Emergency plumbing businesses, for example, can charge an out-of-hours fee as part of every job or decide to fold that cost into the markup of their services.
Common Services
What kind of services does your business offer, and what are the most common jobs your team handles? Your plumbing price list should include the common services your plumbing business offers, such as leaking taps, broken pipe repair, or drain unclogging.
You can start with a typical range or the factors that determine your job costs. As with the rest of the list, your plumbing prices can be as detailed as you like. Start with the basics and break it down as needed. No need to stress if it’s not extensive at first, as long as it has what your business and customers require.
Material Costs
Everyone in the country (and really, the whole world) has noticed the effect of rising supply prices as demand continues to grow. Getting a handle on material costs for your plumbing prices list provides a necessary reference for current prices and the trends of how costs fluctuate, which helps both your business and customers.
Consider the common material/supply costs your plumbing trade business uses for day-to-day jobs and services, and be sure to include them in any plumbing prices list. These costs are essential to your ongoing inventory and cash flow management.
Specialised Services
Does your business offer specialised/niche services with specific tools, materials and equipment? Focus on these costs for a plumbing prices list, especially if it’s uncommon or you specialise in large projects.
Start with these costs, and they’ll lay the groundwork for your plumbing prices list. As your plumbing business grows, you might expand into new areas, services and niches. Add new costs and considerations as you go, and review prices occasionally. This attention to your plumbing prices list arms your trade business with knowledge and insights to keep up with a competitive industry.
How much do plumbers charge for different services?
Now that we’ve covered the key factors of job costing, let's explore how much your plumbing business can charge for specific services. From repairing leaking taps to unclogging drains and everything in between, here's a breakdown of average prices you can consider for your plumbing price list.
But before we do, let’s just state the obvious point and say that the prices we’re about to list are not definitive - you shouldn’t use them as the definitive answer to how much you should charge your clients for your services. Prices change, and we’ll have some tips coming up on how to decide what your plumbing business charges for your services.
So, now that we’ve got that out the way, let's jump right in and talk numbers!
Repairing leaking taps
When it comes to those pesky dripping taps, the average plumbing prices list states a charge of around $80 to $150, depending on the complexity of the repair.
Unclogging drains
Prices for unclogging drains can range from $100 to $250, depending on the severity of the blockage and the tools needed.
In your plumbing price list, you can list the ranges and expected prices for these factors so customers understand the potential costs.
Fixing broken pipes
Fixing broken pipes is no small feat, so it's only fair to charge accordingly. Prices for this service usually range from $150 to $400, depending on the complexity and location of the repair. If the broken pipes are located in a hard-to-reach area or extensive excavation is required, the cost may be higher due to the additional labour and equipment involved. Also, if the pipes are made of rare or speciality materials, the cost of replacement or repair can also increase.
Reflecting these ranges in your plumbing price list showcases the factors that affect estimates/quotes for these jobs and can prevent bill shock for customers once a job is completed. Accounting for these costs saves everyone a headache.
Installing appliances
If you're installing appliances like dishwashers or water filters, you can typically charge around $150 to $450, considering the time and effort involved. The cost may increase if the installation requires additional plumbing work, such as extending or modifying water and drainage lines. As with all the other costs, including these factors in a plumbing price list gives your team and customers a reference point.
Also, if the space doesn't have the necessary electrical connections for the appliance, you may need to bring in a sparkie, which would add to the overall cost.
Bathroom installation
For bathroom installations, your charges can vary widely depending on the scope of the project. On average, you can charge anywhere between $2,000 and $30,000, depending on factors like the number of fixtures, complexity of plumbing, and quality/type of materials used. Including a range of costs in your plumbing prices list provides a simplified reference for your business and customers in a project's estimation and negotiation stage.
And when you’re quoting your client, it pays to have a conversation about unexpected issues or complications that can arise during the renovation process, which could also impact the final cost.
That’s why you should always advise your clients to set aside a contingency budget for unforeseen expenses. And hey, you can use the plumbing price sheet for examples!
Water heaters
When installing or repairing water heaters, prices can range dramatically depending on the type of water heater and the job's complexity. Each type your business specialises in should be included in your plumbing prices list.
For a standard electric storage water heater installation, the cost of the job can range from $500 to $2,000. This typically includes the price of the water heater itself, installation labour, materials, and any electrical connections you need.
For a gas storage water heater, the cost may be slightly higher, ranging from $1,000 to $2,500. Gas water heaters require an extra gas line installation, which can contribute to the increased cost. Of course, if you’re replacing one, you won’t need to run a new line, so the price won’t need to be as high.
And for your fancier or specialised water heaters, such as instant or solar-powered systems, the cost can be higher due to the installation's complexity and the equipment's higher price. These water heater installations can range from $2,000 to $7,000 (or more), depending on the specific requirements and the brand/model chosen.
Notice a theme here? You got it - your plumbing prices vary for every job every time based on the circumstances. No, we’re not going to leave you high and dry - we do actually have some great advice about how you can begin standardising your prices for your business plumbing price list, and quoting fairly while still making a decent income.
Tips for Setting Competitive Prices
With the ranges and various factors that run behind the scenes of pricing, how can you juggle these numbers and keep your business competitive and profitable. You want to charge reasonable rates with fair markup without under or overcharging.
Market research
One of the simplest ways to keep your plumbing prices competitive is to review what the market around you is doing. Take a look at other trade businesses and what they charge for their services. Got a particular niche or service focus? Look up others and take note of their pricing structure, fees and pricing lists. Plumbing blogs and publications are excellent for current market trends and analysis.
Your competition can help your business, too!
Cost analysis
Ever get your real costs back at the end of the month or quarter and do a double-take? You can create and update your plumbing pricing list based on the real costs of completing jobs.
Your markups directly affect your profit margin, so reflecting on your revenue and real earnings can help you adjust prices. For example, if one markup is earning above average profit while another is below average, you could reduce one price and increase the other to balance out the costs and still offer competitive prices.
Value proposition
As a business, you know that defaulting to the cheapest option isn’t the best practice. A low low price on a quote can look great to a customer, so it’s tempting to offer that to be ‘competitive’. You know plumbing isn’t something to skimp on, so go beyond direct costs. Plumbing work, especially renovations and water heaters, is an ongoing investment.
Pitching a large project with a pricey estimate or a small maintenance visit? Whatever the reason, base your jobs on answering the customer’s needs. These needs include the affordability of a service, but it’s not the only consideration.
Adjust for location
When considering a project and relevant costs, the range in your plumbing prices list also reflects the project's location. Local market conditions can impact pricing. If there's a high demand for plumbing services in your area, you may have more flexibility to set higher rates, while lower demand requires competitive rates. Remoteness, availability and market competition are all tied to location pricing.
Let's take a look at the average hourly rates for plumbers in Australia and New Zealand. Keep in mind that these figures are estimates and can fluctuate based on specific circumstances.
The average plumber rate in Australia ranges from $80 to $120 an hour. However, you can charge even more for more complex projects like bathroom installations or fixing broken pipes. Remember, these prices can vary based on your location within Australia.
In New Zealand, plumbing prices are quite similar. The average price list states that a plumber typically costs between $75 and $120 an hour. However, keep in mind that prices can fluctuate depending on your location in the country.
Real-time Pricing from Leading Suppliers
Understanding plumbing prices is essential for any tradesperson. By considering factors like location, project complexity, and market conditions, you can set fair pricing for your services while remaining profitable. Another effective measure that will save you time and improve your efficiency? Using plumbing apps like AroFloGO to streamline your administration and make it so much easier to set your prices effectively.
If you can track your jobs, factoring in materials, time spent, how many people it took to do the job, and what sort of obstacles you regularly come up against, you’ll be in a far better position to set your plumbing prices geared to profit. Need more convincing? Try out our free demo here. Need even more convincing to use AroFlo? How about an integrated supplier catalogue that links you directly with major suppliers? Yep, we’ve got that!
Need to find some more plumbing leads? Click here for some tips.
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