![How to plan and track the budget of your plumbing contracting service [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-6_e0058cf6-92d8-4b33-a0f0-de30ad88cd91.png?v=1715856606&width=1100)
If you don’t plan and track your plumbing business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for plumbers, we saw a lot of plumbing professionals struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your plumbing business's finances around and set you on the path to success!
Get the budget tracker tailored for plumbers
Most plumbers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for plumbers
Here is an example of a (very) detailed budget for a plumbing business, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and storage space | $2,000 | $24,000 |
| Electricity | Power consumption for office and storage | $300 | $3,600 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Insurance | Property and liability insurance | $500 | $6,000 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Master Plumber | 1 | $5,000 | $5,000 | $60,000 |
| Journeyman Plumber | 2 | $3,500 | $7,000 | $84,000 |
| Apprentice Plumber | 2 | $2,500 | $5,000 | $60,000 |
| Office Manager | 1 | $3,000 | $3,000 | $36,000 |
| Administrative Assistant | 1 | $2,500 | $2,500 | $30,000 |
3. Equipment & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Plumbing Tools | Wrenches, pipe cutters, etc. | $500 | $6,000 |
| Vehicle Maintenance | Upkeep of service vans | $300 | $3,600 |
| Fuel | Gasoline for service vehicles | $400 | $4,800 |
| Office Supplies | Stationery, printer ink, etc. | $100 | $1,200 |
| Uniforms | Staff uniforms and safety gear | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of plumbing tools | $200 | $2,400 |
| Licenses & Permits | Business licenses, plumbing permits, etc. | $100 | $1,200 |
| Software Subscriptions | Accounting and project management software | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
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What are the biggest expenses for a plumber?
Be cautious with these potential pitfalls. Here are five major costs every plumber needs to consider, along with some tips on how to manage them effectively.
- Tools and equipment costsThese can take a significant portion of your budget. Plumbing tools and equipment can be expensive, and prices can vary based on quality and brand. To keep these costs in check, focus on buying only the essential tools, negotiate better prices with suppliers, and maintain your equipment to extend its lifespan. It's easy to overspend by purchasing high-end tools that don’t add enough value to your services.
- Labor costsYour team is your backbone, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled workers to provide quality service and keep operations running smoothly. You can optimize labor costs by scheduling efficiently, cross-training your team, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Vehicle and transportation costsGetting to job sites is essential, but fuel, maintenance, and insurance for your vehicles can add up quickly. To optimize these costs, invest in fuel-efficient vehicles, maintain them regularly, and plan your routes to minimize travel time and fuel consumption. Overspending often happens when you choose vehicles that are too large or luxurious for your needs.
- MarketingYou need to get the word out about your plumbing services, but advertising can be pricey, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Licensing and insurance costsThese include everything from business licenses to liability insurance. These are necessary expenses to ensure you are operating legally and protecting yourself from potential liabilities. Optimize by shopping around for the best rates and only purchasing the coverage you need. You can overspend by opting for unnecessary add-ons or higher coverage limits than required.
How to spend less with your plumbing contracting service?
Here are practical tips to help you, as a plumber, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Tools and Equipment | Invest in high-quality, durable tools that will last longer and reduce replacement costs. |
| Labor Costs | Use scheduling software to efficiently allocate jobs and reduce downtime for your team. |
| Vehicle Expenses | Maintain a regular service schedule for your vehicles to prevent costly repairs and improve fuel efficiency. |
| Marketing | Run social media campaigns for your plumbing services and collaborate with local businesses for referrals. |
| Supplies | Buy plumbing supplies in bulk and negotiate discounts with suppliers. |
| Equipment Maintenance | Keep a maintenance log for regular checks and servicing of your tools and equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a more cost-effective location. |
| Insurance | Regularly review your insurance policies to ensure they meet current needs and compare rates annually. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital invoicing and record-keeping. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Technology | Invest in plumbing software for job management, invoicing, and customer communication. |
| Training | Conduct regular in-house training sessions and use free online resources to keep your team updated on the latest techniques and safety protocols. |
| Waste Management | Implement a waste tracking system to minimize material waste and recycle where possible. |
| Transportation | Plan service routes to maximize efficiency and reduce fuel costs. |
| Customer Service | Use customer feedback to improve services and build a loyal client base through excellent service. |
| Inventory Management | Use inventory management software to track stock levels and reduce over-ordering. |
| Advertising | Utilize local advertising channels and online platforms to reach a wider audience. |
| Emergency Services | Offer emergency plumbing services at a premium rate to increase revenue. |
| Networking | Join local trade associations and attend industry events to build connections and gain referrals. |
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Expenses that are just useless for a plumber
Yes, some expenses for your plumbing business are just unnecessary. They don't contribute to increasing revenue or improving customer satisfaction.
| Plumbing Expense | Reason It's Useless |
|---|---|
| Luxury Office Space | High-end office spaces don't attract more clients and can be a significant drain on your budget. |
| Premium Tool Brands | Unless you specialize in high-end projects, mid-range tools are often sufficient and more cost-effective. |
| Excessive Inventory | Stocking too many parts and materials increases storage costs and can lead to waste. |
| High-End Vehicles | Top-of-the-line service vehicles are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your plumbing business. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for industry magazines or software often go unnoticed by customers. |
| Exclusive Tools | Using rare or specialized tools can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by clients and can be a significant expense. |
| Custom Printed Stationery | Personalized stationery is a minor detail that most clients overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most clients are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Service Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Decor | Elaborate office decor is often ignored by clients and adds to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Marketing Materials | Frequently redesigning marketing materials is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Plumbing Equipment | Specialized plumbing equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your plumbing contracting service!
Managing a budget for a plumbing business when funds are tight can feel like a nightmare. It's like being in a constant state of emergency where any unexpected expense can flood your finances.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of plumbing businesses just like yours. Get them now!
Make your plumbing contracting service more profitable
We have studied the strategies of the best plumbers in the world. All their tactics are explained in our pack!
