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Job done, right?
But here’s the question most plumbers never ask: Did I actually make any money on that job?
Not “did I get paid,” that’s a given. I mean after materials, after labour, after all the bits you forgot to charge for, what was actually left in your pocket?
If you can’t answer that, you’re guessing. And when you’re guessing, you’re losing money on jobs you think are winners.
Let me show you how to work it out properly.
Pull up what you quoted the customer.
What did you say it would cost?
Write it down. That’s your starting point.
This is the bit most plumbers skip. And that’s why they’ve no clue if they made money or not.
Here’s what you actually need to count:
Labour costs:
Take the actual hours and multiply by your hourly rate. If you’re charging yourself out at £45/hour and your mate’s £15/hour, add it all up.
Materials costs:
Pull your invoices. Total it up.
Parts you didn’t charge for:
That’s still your time and your materials. Cost it.
Other stuff people forget:
Right, now you’ve got your two numbers.
What you charged: £850
What it actually cost:
Total cost: £670
Profit: £850 – £670 = £180
£180 for 6 hours work. That’s £30/hour.
Better than minimum wage, but is that what you thought you were making?
And you thought this was a decent job because the customer didn’t complain about the price.
Once you’ve done this for 5 or 10 jobs, you start seeing patterns.
Jobs always take longer than quoted? You’re underestimating how long things actually take. Your quotes are wrong.
Materials always cost more than you thought? You’re either guessing at the merchant or you’re not tracking what you’ve already got in the van.
You’re always throwing in extras? The “quick look” at the leaking tap or the “I’ll just fix that while I’m here” is costing you hundreds a month.
Certain jobs never make money? Small repairs, call-outs, “quick fixes” if they’re not clearing you at least £40-50/hour after costs, why are you doing them?
Because it’s depressing.
You don’t want to find out that the boiler service you thought made you £200 actually made you £60 after you factor in the time, the parts, and the return trip because you needed a different flue adaptor.
But if you don’t know, you’ll keep making the same mistakes.
You’ll keep quoting too low. Keep doing freebies. Keep working 50-hour weeks and wondering why you’re skint.
Here’s what I see all the time with plumbers:
The “while you’re here” jobs: Customer books you for a radiator replacement. While you’re there: “The kitchen tap’s dripping, can you look?” Then it’s “the shower’s losing pressure.” Before you know it, you’ve been there an extra 90 minutes and you’ve charged them nothing.
The emergency call-outs: Saturday afternoon. Burst pipe. You drop everything, drive 30 minutes, fix it in an hour. You charge £180. Feels decent. But you’ve just worked 2.5 hours (drive, fix, drive back), used £25 in parts, and burned your Saturday. After costs, you cleared £80. For a Saturday.
The “I’ll just do it properly” jobs: You’re fitting a new tap. Customer’s isolation valves are knackered. You know if you don’t replace them, you’ll be back in 6 months. So you do it. Don’t charge. Cost you £30 in parts and 20 minutes. Times 10 jobs a month, that’s £300 you’re giving away.
After every job, spend 5 minutes.
Write down:
Do this for a month. You’ll see exactly where your profit’s disappearing.
Then fix it.
Most plumbers are working twice as hard as they need to because they’ve no idea what jobs actually make them money.
Stop being one of them.
Need help working out where your money’s going? That’s what we do at Trade CS. We help UK trade businesses find the profit drains, fix them, and build systems that keep you profitable. Drop us a message.