One of the biggest decisions every plumber faces is whether to charge hourly or fixed rates. Both methods have their pros and cons, and choosing the right one depends on the type of work you do, your clients, and your business goals.
If you’re unsure which pricing model is best for you, this guide will break down the benefits and drawbacks of each approach—and help you make the right decision.
Hourly Rates: Pros and Cons
With an hourly rate, you charge based on the actual time spent on the job. The longer the job takes, the more you get paid.
✅ Pros of Charging Hourly:
✔ Fair for unpredictable jobs – If a job takes longer than expected due to hidden issues (e.g., old pipes, tricky installations), you’re still paid for your time.
✔ Good for small repairs – For quick fixes and service calls, an hourly rate ensures you’re paid for every minute of work.
✔ Protects against scope creep – If the client asks for extra work, you simply charge for the additional time.
❌ Cons of Charging Hourly:
✖ Clients may worry about cost uncertainty – Many customers prefer knowing the total price upfront.
✖ Efficiency isn’t rewarded – If you finish the job quickly, you make less money compared to someone who takes longer.
✖ Can lead to pricing disputes – Some clients may question how long the job actually took, leading to potential disagreements.
📌 Best for: Complex or unpredictable jobs where the time required is uncertain, emergency repairs, and maintenance work.
Fixed (Flat) Rates: Pros and Cons
With a fixed rate, you quote a set price for the entire job, regardless of how long it takes.
✅ Pros of Charging Fixed Rates:
✔ Clients prefer clear pricing – Customers feel more comfortable when they know exactly how much they’ll pay.
✔ More profit for efficient plumbers – If you finish the job faster than expected, you keep the extra money.
✔ Easier to market and sell – Flat-rate pricing makes it easier to advertise and close deals.
❌ Cons of Charging Fixed Rates:
✖ Risk of underquoting – If a job takes longer than expected, you could end up working for free.
✖ Scope creep can eat into profits – If a client requests extra work and you don’t adjust the price, you’ll lose money.
✖ Harder for complex jobs – If the job involves unknown factors (e.g., underground leaks, hidden blockages), it’s tough to set an accurate fixed price.
📌 Best for: Standard jobs like hot water system installations, toilet replacements, and drain cleaning—where you know the time and materials required.
Which Pricing Model Should You Choose?
The best pricing strategy depends on your business model and the type of work you do. Here’s how to decide:
If You Handle Emergency or Unpredictable Work → Charge Hourly
- Jobs with unknown conditions (e.g., pipe leaks, troubleshooting) are risky to price upfront.
- An hourly rate ensures you’re covered for surprises.
- Example: If you start a job expecting a simple fix but discover major issues, an hourly rate prevents losing money.
If You Do Standard Installations → Charge Fixed Rates
- If a job is straightforward and repeatable, a flat rate works best.
- It makes pricing easier for customers and lets you earn more by working efficiently.
- Example: A tap replacement or toilet installation has predictable costs, making fixed pricing ideal.
If You Want the Best of Both Worlds → Use a Hybrid Approach
- Some plumbers charge hourly for repairs and flat rates for installations.
- You can also set a fixed price for labor but bill extra for unexpected work.
- Example: A drain cleaning service might have a fixed price for basic cleaning but charge hourly for additional blockages.
📌 Tip: Always clarify what’s included in your price to avoid client disputes.
How to Price Your Work Correctly
No matter which pricing method you choose, make sure your rates cover all costs and leave room for profit.
✔ Factor in overhead costs (fuel, tools, insurance, marketing).
✔ Include a profit margin (at least 20-30%).
✔ Track job times to adjust your pricing over time.
✔ Consider competitor pricing, but don’t undercut yourself just to win jobs.
Final Thoughts: What’s the Best Pricing Model?
There’s no one-size-fits-all answer—both hourly and fixed rates have their place in plumbing.
- Hourly rates work best for unpredictable, emergency, and troubleshooting jobs.
- Fixed rates are ideal for installations and services with clear time and material estimates.
- A hybrid approach lets you adapt your pricing based on job type.
The key is to choose a pricing model that protects your profit and ensures you’re paid fairly for your time and expertise.
Need help pricing your plumbing jobs accurately? SNZ Plumbing Estimating provides professional estimates to ensure you never underquote a job again.