Running a plumbing business isn’t just about doing quality work—it’s also about making smart financial decisions. Many plumbers lose money not because they lack skills but because they make avoidable business mistakes that eat into their profits.
If you want to increase profitability and avoid financial headaches, here are the biggest mistakes that cost plumbers money—and how to fix them.
Underpricing Jobs
One of the most common reasons plumbers lose money is charging too little for their work.
🚨 Why this happens:
- Fear of losing jobs to cheaper competitors.
- Not factoring in overheads, taxes, and profit margins.
- Guessing prices instead of using accurate estimating methods.
✅ How to fix it:
- Use detailed estimating tools to price jobs properly.
- Include all costs (materials, labor, fuel, insurance, overheads, and profit).
- Compare your pricing with industry standards but don’t compete just on price—compete on quality.
📌 Tip: If you win every job you quote, you’re probably pricing too low.
Not Tracking Job Costs Properly
If you don’t track how much a job actually costs, you won’t know if you’re making or losing money.
🚨 What goes wrong:
- Forgetting to track small expenses like fittings, sealants, or extra labor.
- Failing to record fuel, tolls, and travel time.
- Not comparing estimated vs. actual costs after each job.
✅ How to fix it:
- Use job costing software or a simple spreadsheet to track every cost.
- Review each job’s profit and loss to find problem areas.
- Adjust your pricing based on real data, not assumptions.
📌 Tip: If you consistently underestimate costs, add a 5-10% buffer to every quote.
Buying Materials at Retail Prices
Paying full price for materials can seriously hurt your profit margins.
🚨 Common mistakes:
- Buying materials job by job instead of in bulk.
- Not negotiating trade discounts with suppliers.
- Failing to compare prices across multiple suppliers.
✅ How to fix it:
- Open a trade account with suppliers for better pricing.
- Buy materials in bulk to reduce costs.
- Use a preferred supplier list and negotiate discounts for repeat business.
📌 Tip: If your supplier won’t offer discounts, try price matching with competitors.
Not Charging for Variations
Many plumbers end up doing extra work for free because they don’t charge for variations.
🚨 How money is lost:
- Clients request extra work, but you forget to bill for it.
- Jobs take longer than expected, but you don’t adjust the final invoice.
- You assume the client will automatically approve extra charges.
✅ How to fix it:
- Put variation terms in your contract and explain them to clients upfront.
- Get written approval before doing additional work.
- Use variation forms to document extra costs and time.
📌 Tip: Even small changes—like using a different fixture—should be documented and billed accordingly.
Not Getting Paid on Time
Cash flow is the lifeblood of any business. If you’re constantly waiting for payments, you might struggle to pay your own bills.
🚨 Why this happens:
- Sending invoices late or forgetting to send them at all.
- Giving clients too much time to pay.
- Not chasing up overdue payments.
✅ How to fix it:
- Send invoices as soon as the job is done.
- Offer multiple payment options to make it easier for clients.
- Use invoicing software with automated reminders to follow up on payments.
- Request a deposit upfront for larger jobs.
📌 Tip: If a client regularly delays payments, consider adding late fees or requiring prepayment.
Ignoring Business Expenses
Many plumbers focus only on job-related costs but forget about business overheads.
🚨 Expenses that eat into profits:
- Vehicle costs (fuel, repairs, insurance).
- Tools and equipment maintenance.
- Office expenses (software, phone bills, marketing).
✅ How to fix it:
- Track all business expenses—not just materials and labor.
- Budget for equipment replacement to avoid unexpected costs.
- Cut unnecessary expenses without sacrificing quality.
📌 Tip: If your vehicle expenses are too high, consider optimizing your job routes to reduce fuel usage.
Relying on Word-of-Mouth Only
Many plumbers don’t market their business because they rely on word-of-mouth. While referrals are great, they aren’t enough to grow consistently.
🚨 Why this costs you money:
- You miss out on potential high-value clients.
- Competitors who actively market themselves get more jobs.
- You depend on seasonal demand instead of creating a steady workflow.
✅ How to fix it:
- Create a Google My Business profile and collect reviews.
- Build a simple website to showcase your services.
- Use social media and local advertising to reach more clients.
📌 Tip: If marketing feels overwhelming, start with just one strategy—like asking happy clients for Google reviews.
Wasting Time on Unprofitable Jobs
Some jobs look good on paper but end up costing you money.
🚨 Red flags for unprofitable jobs:
- Too much travel time for a small job.
- Clients who haggle too much and delay payment.
- Jobs that require special permits or extra paperwork with no added profit.
✅ How to fix it:
- Focus on jobs that align with your expertise and profitability.
- Politely decline low-value jobs that aren’t worth the effort.
- Prioritize repeat clients and builders who provide steady work.
📌 Tip: If a job feels like a waste of time, it probably is. Learn to say no to bad deals.
Not Keeping Up with Industry Changes
The plumbing industry constantly evolves, and plumbers who don’t adapt often lose money.
🚨 What you might be missing:
- New building codes and regulations that affect job costs.
- More efficient materials and tools that save time and money.
- Software and technology that streamline estimating and invoicing.
✅ How to fix it:
- Stay updated with industry news and plumbing associations.
- Invest in new technology if it increases efficiency.
- Take training courses to stay competitive.
📌 Tip: If competitors are completing jobs faster and cheaper, they might be using better tools or software.
Final Thoughts: Avoid These Mistakes to Stay Profitable
Making money as a plumber isn’t just about working harder—it’s about working smarter. By avoiding these common financial mistakes, you can increase profits, reduce stress, and grow your business successfully.
✔ Price jobs accurately—don’t just guess.
✔ Track job costs to avoid losing money.
✔ Charge for variations—don’t do extra work for free.
✔ Get paid on time to maintain cash flow.
✔ Market your business—don’t rely on word-of-mouth alone.
By fixing these issues, you’ll stop leaking money and build a stronger, more profitable plumbing business.
Need accurate estimates to price your jobs profitably? SNZ Plumbing Estimating can help you avoid costly mistakes and maximize your margins.