Can a plumber really make more than a company owner?

Would you believe me if I told you plumbers can actually make more money than some plumbing company owners? Is that even possible? I recently sat down with David Butler, a veteran in the plumbing industry, to discuss this fascinating topic. David started Butler Plumbing Company back in 1984 and now manages one of the largest plumbing companies in the nation, so he has a lot of experience with this.

Back in the day, it was unheard of for plumbers to out-earn their bosses. Forty years ago, just about everyone was paid by the hour. There was no commission or task pay, just a fixed hourly rate. But things have changed dramatically. Today, plumbers can be paid in various ways: commission, task pay (like mechanics), or even as salesmen. This variety allows plumbers to earn significantly more based on their efficiency and skill. In fact, some plumbers now make between $150,000 and $200,000 a year, which was unimaginable years ago.

While plumbers are earning more, many plumbing companies are barely breaking even. To attract and retain skilled technicians, owners must pay competitive wages. But many don't have their price structures set up correctly, leading to financial struggles. It’s a simple math equation: know your costs, decide your profit margin, and set your prices accordingly. Unfortunately, many owners underprice their services and end up struggling.

The plumbing industry is gradually learning from its mistakes. Companies are starting to understand the importance of charging correctly, and so they are pricing their services better. It’s not just about undercutting competitors; it’s about providing value and maintaining profitability. Customers will pay more for quality service, as long as they see the value in it.

Hiring skilled plumbers isn’t cheap. You know what they say; cheap labor isn’t skilled, and skilled labor isn’t cheap. Companies must invest in recruitment, offer benefits like health insurance and sign-on bonuses, and provide continuous training. The average age of a plumber today is 58, so there is an urgent need to bring younger people into the trade. This includes both men and women. While it’s challenging, it’s essential for the industry’s future.

Running a plumbing business involves more than just knowing how to fix pipes. You need to understand business management, accounting, taxes, and budgeting. It’s crucial to have mentors, coaches, or join best practice groups to guide you. Learning from those who have been there can make a huge difference in your success.

In today’s world, it’s entirely possible for plumbers to make more than their bosses, especially if the company isn’t managed properly. To avoid this, owners must ensure they are pricing their services correctly, investing in their employees, and continuously learning about business management. If you’re a plumbing company owner, don’t neglect these aspects. The success of your business depends on it.