How to Price Plumbing Jobs: Labor, Materials & Profit
By Eric Hanson, Owner & Founder, PlumbRate · Published
A plumbing price is three things added together: the labor it takes, the materials it uses, and the rules your shop sets for minimums and trips. Get those right and every tech quotes the same job the same way. Here is how I would walk through it, with one made-up job to show the math.
1. Pin down the scope first
Write down exactly what the price covers before you put a number on it. "Replace toilet fill valve" is a different job from "rebuild toilet tank." Note what is included, what is not, and what would change the price, like a seized shutoff or access you cannot see yet. A vague scope is where most quotes go wrong.
2. Estimate labor in person-hours
Use your own job records, not a guess or somebody else's book. Look at how long the job really takes your crew, including setup, cleanup and testing. Count labor in person-hours: two techs working one hour is 2 person-hours, not 1.
3. Apply your billing rate
Multiply person-hours by your hourly billing rate. That rate should already cover loaded labor, non-billable time, overhead and your target profit on labor. If it does, do not add overhead or profit again on top of the labor line. If you do not have a rate yet, the $49 plumbing hourly rate calculator works it out from your own costs and billable hours.
4. Price materials from actual cost, then mark up
Start with what you actually pay your supplier, including the fittings and small parts that are easy to forget. Then apply your material markup. Markup and margin are not the same:
- A 50% markup on $100 of material is a $150 sell price.
- That $50 is 33.3% of the $150 sell price, so the gross margin is 33.3%, not 50%.
- To get a 40% gross margin on $100 of material, the sell price is $100 ÷ (1 − 0.40) = $166.67.
Pick one method, write it down, and use it the same way every time.
An illustrative job
Made-up numbers to show the math. They are not recommended prices and not rows from a PlumbRate price book.
Billing rate: $200 per person-hour (already covers overhead and labor profit)
Labor: 2 techs × 1 hour = 2 person-hours × $200 = $400
Material: $100 actual cost × 1.50 (50% markup) = $150
Total: $400 + $150 = $550 before tax, rounding or minimums
The $550 is not a guaranteed profit figure. What you keep depends on whether the job takes the time you priced, what the parts really cost, and whether your rate matches your real costs.
5. Set minimums and trip charges once
Decide how your shop recovers travel, dispatch and small-call costs. A service-call fee can be part of that plan, but include that revenue when reviewing whether your prices cover your costs. Do not count the same travel hours twice in your labor estimate or add the same cost twice in the calculation. Apply your minimum and rounding rule consistently.
6. Handle tax the way your state requires
Sales tax on plumbing labor and materials varies by state and job type. Check your own rules or ask your accountant, and keep tax separate from the price so it is clear on the invoice.
7. Agree on scope changes up front
A fixed quote works when both sides know what it covers. Tell the customer before you start what would change the price, and get approval before extra work. Write the change on the ticket so the office can see it later.
8. Check quotes against actual jobs
Every so often, pull finished jobs and compare what you quoted with the hours and parts you really used. Count callbacks and warranty trips too, since they cost labor you did not bill. Where a service keeps running long, fix that service's labor time or material cost instead of changing your whole rate.
Put it in a price book
Once you price a few jobs this way, write them down so every tech uses the same numbers. The flat-rate price book guide covers how to set one up. Review every labor time, material cost and final price before your techs use it.
See how a finished price book works
The free Standard sample is a small part of the Standard Price Book, so you can see the setup before you buy.