Hey Joe, that's not profit. (what you pay taxes on). Cost of sales include transportation, insurance, health care,among other things. The taxable income on these rates is more like $20 to $30.
“Around my neck of the woods plumbers charge from $65 to $85 an hour.
Counting a normal working day (8 hours), normal work year (2080 hours a year), and an average plumber wage, even though it’s the plumbing company that’s charging, that’s $156,000 a year.
Most plumbers I know work more than 8 hours a day so it would probably be more than that.”
Man are you clueless. If plumbers pay was based on that simple math then we would all be well off.
In my area plumbers are only paid for the time that they turn a wrench, not for driving, not for sitting at the shop when there isn’t a call.
As I ask my rich Southern California customers, where are the plumbers that live in your neighborhood?
Plumbing companies charge an hourly rate for an employee and his truck that actually turns a wrench from 3 to 6 hours a day.
You have never owned a business or participated in the billing process, have you.
I have.
What you sketch is true for one-person companies with no employees, an insignificant minority of all plumbers.
When I started working many years ago, the "multiplier", for billing purposes was 2.2; when I stopped being involved directly with the billing process, that multiplier was approaching 3.
This was due entirely to "benefits" and other costs directly mandated by government. Do I need to repeat that?
OK; that was due entirely to costs, mostly mandated by government.
So, reasonably, using a more likely multiplier of 3, your $156,000 instantly shrinks to $52,000, a most likely figure applicable to my experience here in California.
A little learning is a dangerous thing.
Yeah, but that hourly rate charged by the plumber’s company is not what the plumber gets - far from it! That rate covers taxes, rent/mortgage, equipment purchase/replacement, support office staff wages, etc. The plumber might make $30 out of that $65-$85, if that much!