# Average plumbing contractor profit margin



## OneEightSeven

Just out of curiosity, what is the average gross and net profit for a plumbing contractor?? Is 10-20% gross likely?


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## GAN

Wow aren't you putting the cart before the horse? Not even near through your apprenticeship and your getting into the business end.

You get those returns and you will be out of business with overhead.


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## OneEightSeven

GAN said:


> Wow aren't you putting the cart before the horse? Not even near through your apprenticeship and your getting into the business end.
> 
> You get those returns and you will be out of business with overhead.


Turns out im not going to become a plumbing apprentice. Decided to do something else. But i was just being curious lol not that a specific profit margin would make me want to do it. I'm just curious


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## wyrickmech

40% is what you shoot for but normaly it slips to 25%


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## OneEightSeven

PHP:







wyrickmech said:


> 40% is what you shoot for but normaly it slips to 25%


And I assume that's your gross profit , what's the net? 5-10%?


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## PLUMBER_BILL

*Interesting Topic*



OneEightSeven said:


> And *I assume that's your gross profit , what's the net? 5-10%?
> *
> Lets use 5%, this is labeled commercial plumbing. Could be big expensive work, maybe in the millions. 5% net on a 6 million job is a lot of money. But take that 300,000 and transpose it to the plumbing firm making $300.000 in gross sales. In that case 5% net $15,000 sucks. In fact a company making only 5% net when the unforeseen happens. Lets say there is a loss {the customer just is not paying} Oh it may have to go to court but that adds attorneys fees and a whole lot more. Lets say the amount is in the $6,000 range. Lets say your making 5% net divide 5% into the amount and see how much more work in gross sales you must do to cover the loss. 6,000 / .05 = 120,000. Maybe why so many go out of business. Now if you were making 25% net you would need only 24,000 increased sales to cover the loss.


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## OpenSights

For my truck to leave the driveway on average it costs about $25. It doesn't move for less than $125 and max of 1/2hr at that rate. Anything less is a waste of my time. There's your math, and I'm on the cheaper side in my area due to overhead. I've been giving away so much work lately it makes me sick, but I'm getting older and 10-14 hours a day is not for me anymore.


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## OpenSights

JamieTemple said:


> Thanks for sharing this information. I think profit margin depends on type of contractors and plumbing service nj, that they are providing. Always go with a company that charges the industry average or a little bit higher.


Hey dummy, how bout you read the instruction sheet cause your spamming business has nothing to do with the professional plumbing trade.


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## Master Mark

PLUMBER_BILL said:


> OneEightSeven said:
> 
> 
> 
> And *I assume that's your gross profit , what's the net? 5-10%?
> *
> Lets use 5%, this is labeled commercial plumbing. Could be big expensive work, maybe in the millions. 5% net on a 6 million job is a lot of money. But take that 300,000 and transpose it to the plumbing firm making $300.000 in gross sales. In that case 5% net $15,000 sucks. In fact a company making only 5% net when the unforeseen happens. Lets say there is a loss {the customer just is not paying} Oh it may have to go to court but that adds attorneys fees and a whole lot more. Lets say the amount is in the $6,000 range. Lets say your making 5% net divide 5% into the amount and see how much more work in gross sales you must do to cover the loss. 6,000 / .05 = 120,000. Maybe why so many go out of business. Now if you were making 25% net you would need only 24,000 increased sales to cover the loss.
> 
> 
> 
> 
> Plumber bill, I get the feeling that you have eaten your shorts a number of times and have lived this dream--drama yourself...
> So have I eaten my shorts, and its no fun.....
> 
> the losses you can take on a commercial job can be catastrophic and totally sink your business, your family life and give you a heart attack... it really does not matter how large or small the job is if the contractor goes belly up oweing you the last two draws.
> 
> I dont think you really can charge enough to protect yourself and t*he wording of your contract is also very important too......*
> 
> Friday I went to give an estimate to some up-start contractor who jumped into an apartment renovation without really knowing what he was getting into ... They were planning on adding 2 studio units in the basements of 3 story apartment buildings and the plumber went ahead breaking up the concrete floors doing the rough inn only to find that the main drain is on the other side of a 24 inch poured concrete foundation.....in a occupied apartment...
> 
> The plumber had covered his ass in the bid stating unforseen problems would be extra to the price, and he about doubled his price, and now the contractor is getting his feet held to the fire by the owner....
> 
> He wanted options from me on how to get out of this mess and I knew better than to stick my pecker into this meat grinder .....
> 
> The plumber is probably screwed and probably should be for not doing his
> due diligence and the contractor will certainly go belly up before its all said and done...
Click to expand...


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## OpenSights

Master Mark said:


> PLUMBER_BILL said:
> 
> 
> 
> Plumber bill, I get the feeling that you have eaten your shorts a number of times and have lived this dream--drama yourself...
> So have I eaten my shorts, and its no fun.....
> 
> the losses you can take on a commercial job can be catastrophic and totally sink your business, your family life and give you a heart attack... it really does not matter how large or small the job is if the contractor goes belly up oweing you the last two draws.
> 
> I dont think you really can charge enough to protect yourself and t*he wording of your contract is also very important too......*
> 
> Friday I went to give an estimate to some up-start contractor who jumped into an apartment renovation without really knowing what he was getting into ... They were planning on adding 2 studio units in the basements of 3 story apartment buildings and the plumber went ahead breaking up the concrete floors doing the rough inn only to find that the main drain is on the other side of a 24 inch poured concrete foundation.....in a occupied apartment...
> 
> The plumber had covered his ass in the bid stating unforseen problems would be extra to the price, and he about doubled his price, and now the contractor is getting his feet held to the fire by the owner....
> 
> He wanted options from me on how to get out of this mess and I knew better than to stick my pecker into this meat grinder .....
> 
> The plumber is probably screwed and probably should be for not doing his
> due diligence and the contractor will certainly go belly up before its all said and done...
> 
> 
> 
> 
> Words of wisdom. Took me long enough to back away.
> 
> My Master has a finish on Thursday. It's in the book. If checks for all other jobs haven't arrived by then, no worky. They owe us thousands dating back to the beginning of the year. Supply house doesn't work that way, we're not a bank.
> 
> I'm surprised he's allowed this to go on so long.
Click to expand...


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## Master Mark

OpenSights said:


> Master Mark said:
> 
> 
> 
> Words of wisdom. Took me long enough to back away.
> 
> My Master has a finish on Thursday. It's in the book. If checks for all other jobs haven't arrived by then, no worky. They owe us thousands dating back to the beginning of the year. Supply house doesn't work that way, we're not a bank.
> 
> I'm surprised he's allowed this to go on so long.
> 
> 
> 
> 
> dont be too worried about your boss... These things sometimes happen because you are simply too busy to do your paperwork.... its human nature to give someone more time and the criminals seem to know this and prey upon "good honest guys"
> 
> Most of these skumbags hope you forget about the 60 day lien deadline and cant file it in time.... then they can string you along from job to job...
> 
> Its all part of living the plumbing drama --dream and he will probably pull out of it with most of his skin intact
Click to expand...


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## wyrickmech

35% on commercial work 40% on sprinkler work and residential work is 30%


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## Master Mark

wyrickmech said:


> 35% on commercial work 40% on sprinkler work and residential work is 30%



Your figures sound about right to me,, although I think we are doing closer to around 45% on residential service work ....and that is why we only do residential in home service and not new residential home construction which I think is closer to 20%

...considering the money I normally make every day is substantial compared to what I would make doing new home construction work.I am sure its double or more.... 

Ben F is probably higher than this for his residential service work, probably more like around 60%-75% .l


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