By Jad Salman · · All guides
Most plumbers set their first prices by asking a mate what he charges, knocking a bit off to win work, and never looking at it again. It feels safe. It's also how a lot of busy, skilled plumbers end up working fifty-hour weeks and wondering where the money went.
Pricing isn't about guessing what the market will take. It starts with what your time actually costs you, then you decide how to package it: hourly, by the day, as a fixed quote, or with a call-out charge. This guide walks through each one. The numbers below are made-up examples to show the method, not suggested rates, so plug in your own.
Start With What an Hour Really Costs You
Before you can charge properly, you need to know your break-even hour. That's the amount you have to bring in for every hour you bill just to cover the business and pay yourself a fair wage.
Add Up Your Yearly Costs
List everything the business spends in a year, not counting materials you'll recharge to customers:
- Van finance or lease, insurance, fuel, servicing and tyres
- Public liability and any other cover (our insurance guide goes through the types)
- Tools, replacements, calibration and test kit
- Phone, software, accountant and bank fees
- Gas Safe registration, training and courses
- Advertising, website and trade platform fees
- Workwear, consumables and the bits you never invoice for
Then add the wage you want to take home before tax. Be honest here. If you'd earn a set salary working for a bigger firm, that's a sensible floor.
Work Out Your Billable Hours
This is where most people go wrong. You might be working 50 hours a week, but you aren't billing 50. Quoting, driving between jobs, collecting parts, chasing invoices and answering the phone all eat time. Many sole traders find only somewhere between half and two thirds of their working hours end up on an invoice. Track a normal fortnight and see what yours really is.
Take off holidays, bank holidays and a few days for illness or the van being off the road.
A Worked Example
Here's an illustrative plumber in Nottingham. These figures are invented to show the sums:
- Running costs for the year: £18,000
- Wage he wants before tax: £40,000
- Total to cover: £58,000
- Working weeks: 46
- Billable hours a week: 30
- Billable hours a year: 1,380
£58,000 divided by 1,380 is about £42 an hour. That's break-even, with no profit for the business, no buffer for a quiet month and nothing put aside for a new van. He'd then add a margin on top, say 15% to 25%, to land on his real rate.
If he'd been charging less than that because it "sounded about right", he'd now know exactly why the bank balance never seemed to grow.
Choosing How to Charge
Hourly Rates
Hourly works for fault-finding and jobs where you genuinely don't know what's behind the panel. Customers understand it, and you don't lose out when something takes longer than expected.
The downside is that customers watch the clock, and good plumbers get punished for being quick. Make it clear whether you charge in full hours, half hours or quarter hours after the first hour, and whether travel time counts.
Day Rates
A day rate suits bigger work: bathroom refits, first and second fix on extensions, and subcontracting for builders. It's simple to quote and simple to invoice.
Agree up front what a "day" means (eight hours on site, or arrival to finish), who supplies materials, and what happens if you're stood waiting for another trade. If you're working for a contractor, check how payments are handled under the Construction Industry Scheme on GOV.UK.
Fixed Quotes
Fixed prices are what homeowners usually prefer, because they know the total before you start. They also let you earn more on jobs you're fast at, like tap replacements, radiator swaps and toilet repairs.
The risk is the job that goes sideways. Protect yourself by:
- Building the quote from your hourly rate plus materials, not from what you think the customer will accept
- Listing exactly what's included and what isn't
- Writing down your assumptions, such as "existing pipework in good condition"
- Saying how extra work will be priced if you find something unexpected
- Putting a validity date on the quote, because copper and boiler prices move
For the jobs you do every week, build a simple price list for yourself. It makes quoting on the phone quicker and keeps you consistent.
Call-Out Charges
A call-out charge covers getting to the customer and the first chunk of time. It filters out time-wasters and stops you working for free on short visits.
Be clear about what it includes. Common approaches are a charge that includes the first hour, a charge that's deducted from the bill if the customer goes ahead, or a separate fee for diagnosis only. Whichever you choose, say it on the phone before you set off, and put it in writing in a text or email. Disputes about call-out fees almost always come from customers who didn't hear it the first time.
Pricing Materials
You're entitled to make money on materials. You order them, collect them, store them, carry the risk if they're wrong and guarantee the installation. A markup covers that.
Pick an approach and stick to it. Some plumbers add a set percentage to trade price, others charge closer to retail. Keep receipts against each job so you can show what you paid if anyone questions it. If you're VAT registered, our VAT guide for plumbers covers how that changes your invoices.
If a customer insists on supplying their own parts, decide in advance whether you'll fit them and how you'll handle the guarantee. Many plumbers will fit customer-supplied parts but only guarantee their labour.
Out-of-Hours and Emergency Work
Evenings, weekends and bank holidays should cost more. You're giving up time off, and emergency jobs are usually messier. Set your out-of-hours rates before the first 10pm leak call, not during it, so you're not making it up on the doorstep. Tell the customer the rate before you agree to go.
Common Pricing Mistakes
- Pricing to beat the cheapest quote. There's always someone cheaper. Customers who pick purely on price rarely become loyal.
- Forgetting travel and parking. Congestion zones, permit parking and long drives add up fast.
- Never putting prices up. Review your rates at least once a year. Your costs go up every year whether you do or not.
- Giving prices without seeing the job. Fine for simple, standard work. Risky for anything else. Offer a range or a visit instead.
- Not charging for quoting large jobs. Some plumbers charge a survey fee for big jobs and take it off the invoice if they win the work.
Talking About Price on the Phone
A lot of pricing is won or lost on the first call. Customers want to know roughly what it'll cost before they commit. Have short, confident answers ready for your most common jobs, and explain your call-out charge in one sentence.
The harder part is being able to have that conversation at all when you're under a sink. If calls are going to voicemail during the day, some of those customers are ringing the next plumber on the list. That's the problem Slotby was built for: it answers when you can't, books the job into your diary and sends you a summary, so you can call back the ones that need a proper price. If you're not sure how many calls you're losing, our post on how much a missed call costs a plumber runs through the sums.
A Quick Pricing Checklist
- Add up your yearly running costs
- Decide the wage you want to take home
- Track your real billable hours for two weeks
- Work out your break-even hourly rate, then add a margin
- Decide when you charge hourly, by the day or by fixed quote
- Write down your call-out charge and what it includes
- Set a consistent materials markup and keep receipts
- Set out-of-hours rates before you need them
- Put assumptions and validity dates on every quote
- Review your prices every year
Get the sums right once and pricing stops being guesswork. For more on running the business side, see our guides on setting up a plumbing business in the UK and getting more plumbing leads.
