Whether it’s a clogged drain, a leaky faucet, or toilet water that creeps up dangerously close to the top of the toilet bowl, everyone has come face to face with some kind of plumbing issue at one point or another. While some people are brave enough to tackle their own plumbing problems DIY style (except for major jobs like sewer line replacement), most of us rely on the skills and expertise of professional licensed plumbers like Calgary Plumber and Drains to get the job done.
For various reasons, plumbing companies are able to make pretty good money, making it an industry with lots of financial incentives for people looking to get into the trades. Let’s take a deeper look at the services plumbing companies provide and the skills they possess to find out how plumbing companies make money.
Common Plumbing Services
Naturally, plumbing is a service-based industry. In a service industry, customers pay professionals to provide a service that they are either unwilling or unable to do for themselves. Luckily for plumbing companies, there aren’t many people who know how to fix common plumbing issues and very few who are even willing to try. Since plumbing is daunting and often grimy, that creates a huge financial opportunity for plumbers who are willing to get down and dirty.
The most common jobs for plumbing companies are various kinds of repairs. How many people do you know can repair a waterline? The answer probably isn’t very many. Plumbing companies are able to charge profitable rates because they have training and experience that makes it worth it for people to pay for their services. Some plumbing issues are more significant than others, but they’re all problems worth paying good money for a solution to the layperson. The following is a basic list of common plumbing repair services:
- Faucet repairs and replacement
- Toilet repairs and replacement
- Sink replacement
- Waterline repairs
- Boiler Repair and replacement
- Sewer line replacement
- Emergency services
Do Plumbing Companies Have Expenses?
Running any successful business requires spending money to keep operations up and running. Plumbing companies are no different. Just think about it. How successful would a plumber be without a truck to move from job site to job site? Or if they showed up to a job without tools?
A van or service truck is probably the biggest expense considering a new one costs around $30,000. And to ensure they have the necessary tools for the various types of work they get called to do, companies need around $5000 per plumber. Other expenses include:
- Office Space
- Van maintenance and insurance
How Do Plumbers Charge Customers?
There are two different ways plumbers can charge for their services. They can either charge a flat rate for specific jobs, or they can charge by the hour. Usually, they will charge by the hour for an emergency, rush, or off-hours jobs. The rate plumbers charge will vary from company to company, but most plumbers price their services somewhat similar to each other.
Typical rates range from $160 to $430 depending on the job, which is comparable to $45 to $150 per hour. However, it’s important to note that more extensive jobs like sewer line replacement can cost you between $1,100 and $4,250. These prices are more than enough for any competent plumbing company to turn a pretty penny.
After all their expenses have been paid, a plumbing company could profit around $25,000 to $50,000 per plumber every year.