5 Factors For Calculating A Plumber Business Owner Salary

There are numerous factors for calculating a plumber business owner salary. An average plumbing repair can cost anywhere from $175 to $450. Of course, costs can include job labor, repair parts, service fees and permit fees. As an aspiring plumbing business owner, there are many aspects that can impact your salary, such as how you market your business and the client scheduling app you use. Consider these factors when calculating a plumbing business owner’s salary.

Develop A Pricing Formula

First, calculate you salary by developing a pricing formula. Determine how much you plan on spending to complete daily plumbing operations. For example, calculate base hourly rate, billable hourly rate, bidding rate, labor hours and total quote cost. Figure out your base salary rate by documenting how much you want to earn weekly. Then, divide that number by your planned billable working hours. Determine your billable hourly rate by calculating profit margins with over head expenses, then add that number to your base hourly rate. Of course, you need a bidding price for materials, permits and taxes. Next, discover your labor hours by writing down your hours, then multiply that by your base hourly rate. Finally, calculate your total quote cost by adding your bidding total to your labor hours. Certainly, you need to develop a pricing formula before calculating your plumbing business owner’s salary.

Location

Secondly, you can calculate your owner’s salary by researching your location. Salaries change on a state-by-state basis. Average salaries range from about $38,000 to $90,000. For example, the average salary for a commercial plumber in Arkansas only earn about $38,200 a year. That means they earn about $18 an hour. On the other hand, if you are a commercial plumber in Oregon, you can earn about $91,000 annually. As a result, you would get around $43 an hour for work. Furthermore, in the New York/New Jersey area, you can average around $70,000 a year, or about $34 an hour. Of course, you can more accurately calculate your plumbing business owner’s salary based on your location.

Services Offered

Of course, you can calculate your salary based on the services your plumbing business offers. Offer advanced services such as after-hour plumbing, trenchless sewer repair, and water filtration systems. In fact, you could also repair appliances so your clients don’t have to outsource to an appliance repair business. With more advanced services you could charge more per hour. More so, the quality of your work and what you offer can help differentiate your company from the rest, which could increase your salary. Your reliable, hardworking authority can grow trust with current, new or potential clients. As a result, they will come back to your business for any plumbing needs. In fact, you could receive more work hours, increasing your overall earnings. Certainly, consider your offered services when calculating your plumbing business owner’s salary.

Experience Level

Next, you can calculate your salary based on your plumbing experience level. If you are a plumbing business owner, you likely have a master experience level. This can guarantee you anywhere from $30 to above $45 an hour. As a result, your salary can range from as little as $55,000 to more than $90,000 annually. Moreover, as a business owner, you probably have to hire employees. Therefore, when hiring an apprentice, you should pay them around $15 to $20 an hour. Or, a salary of around $20,000 to $45,000. Of course, you can also have journeyman on your team for an hourly payment of about $25 or a salary of about $48,000. Surely, you can calculate your salary based on your plumbing experience levels.

Taxes

Finally, you can calculate your plumbing business owner’s salary by reviewing your taxes. Start by understanding the taxes that will impact your salary such as the Federal Income Tax and Social Security Tax. The Federal Income Tax removes a certain amount of money based on your income amount. For example, as a plumber in New York making a salary of about $90,000, your taxes will be around $24,500 a year. As a result, your net pay will be around $65,000 and your monthly income will be just below $5,500. With the Social Security Tax, you will have to pay 12.4% on all income up to a certain wage base established by the Social Security Administration. As you are the owner of your plumbing business or a one man business, you will have to pay the complete 12.4%. Meanwhile, your employees only have to pay half, 6.2% while you pay their other 6.2%. Certainly, consider taxes when calculating your salary.

There are various factors for calculating a plumber business owner salary. First, develop a pricing formula to determine costs such as base hourly rates and a total cost for your quote. Secondly, research your location to get an idea of what the average is in your state, such as earning about $75,000 annually in Connecticut. Next, you can configure your salary based on your experience level, as masters can earn a salary of over $90,000 while apprentices usually earn a salary of up to $45,000. Of course, consider the services you offer to calculate your salary, such as sewer repair, drain cleaning and fixture installation. Finally, consider your taxes such as Federal Income Tax and Social Security Tax when calculating your salary. These are the factors to consider when calculating a plumber business owner’s salary.