A PLUMBERS GUIDE TO WORKING OUT YOUR PRICE..HOW MUCH DOES A PLUMBER MAKE? ALL IS EXPLAINED!
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- Опубликовано: 3 май 2024
- How much should a Plumber Cost? How to work out your prices as a Plumber
In This Video, We'll Show You How To Calculate Your Price As A Beginner Plumber
A few weeks ago I done a video whilst I was doing various jobs and revealing how much I charged for each job. Today we will be looking at how I came about what I charge per hour, day and week.
This is just an example and should be taken for guidance only as each business will have different costs and overheads.
We will be looking at what outgoing you need to consider, talking about profit and a burn rate to ensure your business can survive.
Any questions or comments as always let me know and il do my best to answer
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#plumber #plumbing #business #businesstips #trade 
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Thanks for your support again everyone, don’t forget to subscribe, like and comment 🙌👍
Really great run through buddy.
Gives a great idea of costs and pricing well done.
Quality video!
Great video and clear information
Very interesting too
Another great vid. I wish customers realised what it cost to run a small business they seem to think all the money we charge for a job goes straight in our pocket !
Thanks mate, would be rich people if it all went in our pockets 😅
Really clear and easy to understand, keep up the good work
Thanks mate 👍
Great vlog mate, enjoyed it very much. Great insight into running your own gas/plumbing business.
Thanks Gary 🙌👍
That was brilliant mate, really well explained!
Cheers mate 🙌
Thanks for that really helpful.
No problem 👍
Really useful info mate, just started my Air Con business in June and appreciate any help and advice and your video was spot on 👍 all the best for the future
Thanks mate appreciated 👍
Really great breakdown of pricing. This has helped me out especially with the logic behind how many weeks and hours to use
Glad it’s helped out mate 👍
Thank you so much for this powerful information. I am really glad that you took the time to share this information with upcoming business
Thanks mate 👍
Top video pal, handy little video for anyone starting out and for people like me that second guesses myself all the time
Thanks Mac 🙌👊
Enjoyed that mate ❤
Cheers mate 🙌
Cracking to see a Black Country guy, doing a cracking job. Great advice and good break down of out goings for a small business.
Boston video. From another Black Country tradesman.
Bostin 👊👍 thanks for the support mate much appreciated
1st. Class advice! All those watching, take it all on board!
Thanks John 👊👍
Superb mate totally true what your saying here
Thanks Lee 🙌👍
Perfect timing for me this video mate. It’s a lot to consider. I’m lucky I’ve got a book keeper who has been great at showing the way forward. It’s a big big commitment and challenge. I can only wish all those going the same route my best wishes. Great content mate. Keep it up. 👍
Good accountant/book keeper pays for themselves 👍 yes it’s a big commitment and scary to be honest when you first start but if I had choice I wouldn’t go back to being employed now…thanks mate appreciated 👍
Very good video
That’s Allen 🙌👍
Really good video ive work for my self for last 15 year and juat seeing it laid out like that makes u think
Thanks mate glad it’s helped
Great vid mate, nice one
No problem mate 🙌
You're a star for recording this. Probably one of the biggest hurdle going on your own is properly pricing jobs!
Thanks mate 👍
Excellent advice. To someone starting out I would say keep your costs down, don't buy thousands of pounds worth of the latest top brand power tools, try and buy just what you really need at the best prices, get a decent 2nd hand van or lease at a fixed price. But above all, do a really good standard of work, you won't have to advertise much...
Yeah great advice, exactly what we did, 2nd hand van, no press gun as tempting as it might be, made sure we was in time, answered the phone and done a great job and word gets around…thanks for the comment mate 🙌👍
I wish I could get a decent second hand van in London. Since the Ulez expansion prices have shot through the roof.
I am most impressed with your financial assessment of how much it takes to run a business. Before I retired and became a plumber I ran a computer company and although the business employed over 100 people with a T/O over £1m the basic calculations for profit were how you stated them. Spot on. These days I try to price a job on a 'per job ' basis which sometimes gets people annoyed because the job only took an hour.
Great example of how to work out a price.
Thanks 👍
Very good information your spot on with your thinking unfortunately most people that start up haven't got a clue .as you said if you do a job quickly why should you charge less
Spot on mate never be punished for being good at your job 👍
Top content mate,
Thanks mate 👊
Great info mate 👍 think i need to take note! Working 7 day's a week for a wage at best has become depressing! appreciate your video & knowledge
Thanks mate hope it helps 👍
Great video mate
Thanks mate 👍
Great video
Thanks 👍👍
Brilliantly explained, I explained to my customers your theory cos they haven't got a clue.i tell the ones who want the job for 1960s prices if you want a cheap loaf of bread you got to buy yesterdays loaf!,, Mr bulldog what determine your wealth is not what you earn its what you spend!!! Remember there are pools of customers who want a rolls royce for the cost of a mini. And the decent customers who want a good honest job . THATS THE POOL YOU NEED TO SWIM IN
Well said mate, being self employed you will always get people question your price but if you know what your quoting is a fair price for your business then quoting gets much easier, as you said you want the right customers as well 👍
Awesome video, Bulldog! It's evident that there's a prevailing issue with how customers perceive pricing these days. It can be frustrating when you provide a quote for a job, and you're met with silence or open-mouthed surprise at the proposed price. Many people may not fully grasp the operating costs involved in running a business, and they tend to assume that professionals like plumbers are making a fortune. Someone earning £11 per hour at Tesco or £15 per hour as an administrator might not always appreciate the complexities involved and could perceive it as overpriced. Interestingly, burst pipes tend to be a potent motivator for them to understand the value of your service!
Thanks mate and thanks for the input as well much appreciated 🙌👍
Very good 👍
Thanks mate 👍
very useful
Thanks mate 👍
Fantastic analysis. This is really helpful. This is the first gas vlogger I've seen who has demonstrated how to keep the business successful.
I offered a friend to fit a Tado thermostat for £80 and he asked me make it cheaper. It will take me 1/2 an hour to get there. You just can't win with some people. Keep up the good work. I wish you all the best.
Thanks mate really appreciated 👍
Very informative video. Thank you. A few questions: How much would you offer for a good lead? If the job is too big and you take a fellow sole-trader to for example hang only rads, or to do the boiler?
If the jobs to big for me I have a few lads who I get in to help and they will charge me there day rate, normally thou we will work a day for a day
Outgoings. The van itself, tool insurance, bank fees, accountant fees, greggs👀 the 800 a month is very low but should be divided by 42 weeks you're working. There's 10 weeks at £185 you're missing. You've just chucked 1850 away and that's your holiday funds.
£300-400 a day plus vat.
Also. Never work price out on day rate and how many days you think it will take. The only person you put under preasure is yourself. Price should be a healthy amount more than day rate.
Nice video, your profit will include a margin based the cost of sales, I.e. the % amount you add on all goods which you install, the company I worked for it was 35%, a friend works in a pet shop and their margin is 100%. Just don’t sell things for what you buy them for is the golden rule, loss leading rarely works.
Yes great point we are 20% on materials that again can account for call backs or items that need returning due to damage or fault etc.
Mobile phone, tool insurance, pension, tool calibrations press gun analyser etc off top of my head. Appreciate the video bud I'm thinking of going it on my own after my level 2 night classes at college so this is great for me. 👍
Yeah if you have press gun, analyser calibration costs need to go in, tool insurance I would class as other insurances as I have all mine with one company…thanks for adding them…hope this helps when you go self employed mate 🙌👍
You missed a buggy, the purchase of the vehicle and depreciation or if leased the lease cost
Yeah if you lease you will need to put that into your monthly, overlooked this as I bought my van outright so classed it as a start up cost 👍
If your employed you get holiday pay and a pension why aren’t these considerations too plus depreciation of the van
most people self employed forget about fuel costs
Flue analyser calibration every year
I still wouldn’t offer an hourly rate mate,I’ll tell them it’s an unknown quantity,an you’ll get your bill at the end of the job of what I think it was worth.it’s no different if someone asks for a price over the phone they can stick it🤣🤣I stopped doing that yrs ago
If your prices are reasonable, you don’t need advertising.
Yes! Never advertise because I'm not price gouging, take pride in my work and I'm honest
Accountant
You didn't mention the van cost itself, how much is a new van ? a second hand? How often does it need to be replaced?
Fair points I would put van as start up if you buy outright and add
To monthly if you lease it took out a loan
One thing I always stress to suppliers and staff is that its a percentage game too.
Your day rate is £270. one of lads takes it upon themselves to ignore your instruction and deviates from the plan and ends up using 'just an extra length of copper and a few fittings' that cost £27. Its not just £27 its 10% of your profit gone. Customer messes you about and you lose a day. 25% of your earning potential gone. Same with suppliers sulking that im arguing the toss over a 5% price difference. I'm spending about £200k a year with them and that 5% is a huge chunk of change its not just 35p on a bottle of inhibitor its big money and big percentages that can wipe out your good living without you even realising.
That’s very good advice 👍
I can earn £1100 per week plus overtime working on site use the family car for travel to / from work , no gas safe , guaranteed hours etc. working for yourself isn't the be all and end all. If i was newly qualified i would consider going on site for a few years to really get used to the job , i wouldn't go working in private houses whilst still learning. I do commercial instal work and I've been a domestic and commercial engineer for 41 years.
To be fair I did earn a lot more on the books with the overtime but it wasn’t my own, I like the fact I can do my own thing now, newly qualified I would say go and try a few different jobs first to know what you want to do and enjoy, wasn’t till my 4th job I found breakdowns and that’s what I love doing. Commercial is an area I never tried but would love to have a go, I spent a day helping a commercial lad on a biomass system and it was really interesting. Thanks for the comment mate appreciated 👍
@@bluebulldog_uk Yes i agree you should try some other avenues before you take the plunge. There is a huge demand for plumbers to work on site. Agencies cant get anyone to do it. If you get on the right job you can earn some seriously good money in a short time. Great if you are saving for a mortgage or getting a deposit together for renting.
@@paullbennett2923 exactly what I did worked a lot of hours to save up for a mortgage and now I can balance work/life a lot better
A lot of these costs are very similar to what anyone has to pay to go to work. For example, running a car to get you to work, clothes for work. Also "profit" is meaningless if you are a sole trader. basically you're just factoring in a £50k wage.
So the video is basically saying a plumber should earn £50k and this is what they should charge to do that, whilst having no other associated work costs such as travel and clothing.
Take off the costs that everyone who goes to work spends on travel and clothing, add that on to the 50k and that's what you're earning in this example, compared to the average Joe.
Not a complaint, just an observation.
To be honest a lot of what i mentioned Joe Public doesn’t have to worry about or even consider….If you work for someone that requires you to wear a uniform they will provide it, also most people will go to one place of work, drive there, work, drive home…trades are out and about in between jobs some days driving longer distances, I think a lot of the costs other people don’t have like trade insurance, gas safe yearly fee, gas re assessments, advertising, training on new products…there’s quite a few things
To
Profit is separate to your own wage, profit is within the business, to invest in the business or to pay for items like a new van when you need that, new tools, broken tools etc
I’d like to know what’s the basic price people charge for a basic combi combi swap. I’ve worked for years council contract work. £200 per swap.
We pay about £600 to £800 in London, plus VAT.
@@stepbackandthink hi thanks. I’m in Essex and work around Suffolk as well. The most companies are paying is around £425. But you have to supply tube. All condense fittings even soak away and fit new wireless stats as well all included in price. Oh and lag flow return and hot pipes no matter where boiler is in house. And external condense you have to bring 32 mm into the house and lag external. Included in price
No one round here would work for that.
£35 pound an hour my firm was charging 10 years ago
Charge what your worth provide a good service ,never aim to be the cheapest ,double your price ,you can then do half the work and relax on the work you are doing , and if i said quadruple your price you all would lose your mind .
I would say look at your conversion rate on quotes as well, if your winning all your quotes definitely too cheap
Don’t forget the non payers , then the ones that take for ever to pay up.
accounts fees maybe
Can’t price in the old razzle dazzle ;)
Van stock , you dont want to be running around all day collecting fittings!
Yes definitely van stock, I added this into my business start up fund and it just gets replenished now but stock always changes on van with new parts so worth keeping on top of 👍
Accountant fees, tax, National insurance and pension?
Tax I do mention in there, NI if your LTD, unless you pay yourself over the threshold you don’t pay NI, sole trader yes you would have to pay NI, pension is another one people should look into or other investments, accounting fees if you want a professional doing your books which I would recommend, great points thanks for the comment
As a customer i am happy to pay for time, expertise, skill, specialist tools, reliability peace of mind and good advice. What i don't want to pay for is time taken to go and get 90 degree elbows or a piece of copper pipe. And i don't want to pay extra to rectify mistakes and poor workmanship. It also helps if the tradesman turns up in a reasonably good mood and preferably when they said they were going to come.
Plumbers can’t keep everything on a van there will be times when it’s something we just don’t carry like a part for boiler or specific toilet part etc, unless customer supplies it’s the time to arrange to collect/order which unfortunately needs to be accounted for, no one should have to pay extra for poor workmanship or mistakes but there will be times when circumstances are out of your control, like a manufacturer part that’s faulty under warranty under your company’s guarantee period. And 100% good manners, polite and on time should be part of any company’s business model.
Question, are you a sol trader ?
Yes mate just me
And also it takes years to build a business to get enough work all year round
It does mate remember my first year, was touch and go some weeks for work but now I’m doing ok, plenty of calls and opportunities
Accountants
Yep great shout 👍
This is confirmation that I am a busy fool
INFLATION is possibly worth a mention
Absolutely got to give yourself a pay rise in line with inflation every year which means your prices will go up
Cost of purchasing a van
I would class that as start up cost unless you lease or take a loan out to purchase a van then it would be a monthly
You never mentioned what you can claim back for tools, uniform, etc. from our friends at HMRC. Bit one sided. This explains why I do my own plumbing and only get someone in for gas. 😊
Price work every time,I can’t live on an hourly wage,an I’m not working like a slave an breaking my body for a hourly rate it’s not worth it,you might as well do site work.
Hourly I would recommend for unknown like leaks or gas escapes them jobs that are unknown if you know what I mean…very hard to fix price, price is better when your experienced 100%
Public liability
I would class that on other insurances that I mentioned but worth noting 👍
6 hours a day, 42 weeks a year?
Who do you think you are? A teacher?!
Think you might have misunderstood, some weeks have been taken into account for unplayable roles you have to fulfill in running a business and you work for 8 hours, but can only charge for 6 hours
12 hours a day 7 days a week and still not rich
Sounds about right 😅