It can be hard for someone to figure out exactly how much they should charge for a plumbing job. When thinking about plumbing pricing, some of the factors that might play a role include the location of the job, the materials that are being used, the cost of labor, and even the time it will take to complete the job.
Some plumbers prefer to quote an hourly rate while others prefer to use a flat fee. Fortunately, there is a simple way plumbers can make sure they are quoting a fair price.
Plumbing Pricing and Quoting: A Formula
There are a few steps plumbers should follow to make sure they are providing a fair estimate. The steps include:
- Figure out the hourly base rate of the services. Figure out how much someone wants to make in a week. Then, divide this by the number of hours that are going to be worked.
- After this, figure out the overhead costs. This will be used to figure out the profit margin. Add this to the hourly rate. This is called the “net billable hourly rate.”
- Next, when bidding on a job, collect the costs of the plumbing supply materials, including taxes, permits, and additional expenses that are outlined above. This is the bid.
- Calculate the total number of labor hours and multiply this by the hourly rate that was calculated above.
- This final value is going to be the quote that will be provided to the client.
Use this formula for every plumbing job. This will allow plumbers to come up with a consistent process for coming up with quotes.
Provide Consistent Plumbing Supply Quotes
It is important for plumbers to be transparent with their clients about the cost of a job. This formula will allow them to do just that.