Pricing for Maximum Profits (Without Scaring Away Customers)

Jim Cosmas

Service Business Strategist - Growth Expert | Consulting, Coaching, & Profit Maximization Specialist | Scaling Strategies for Sustainable Success

May 21, 2025

🚨 Plumbers: Your Prices Are Too Low—and It’s Keeping You Broke

Let’s be honest: Most plumbing businesses aren’t losing money because they don’t have enough work. They’re losing money because they’re not charging enough for the work they’re already doing.

And I get it. You want to stay “competitive.” You don’t want to scare off potential customers. You think raising your prices will drive people away.

That mindset is keeping you stuck.

🔥 The top-performing plumbing businesses don’t compete on price— They compete on VALUE.

💡 Plumbing Profit Multiplier Series:

Your blueprint for a high-profit, high-retention plumbing business.

✔️ Week 1: The $100K Profit Leak – Why Most Plumbing Businesses Are Losing Money ✅

✔️ Week 2: Service Agreements That Lock in Customers for Life ✅

✅ Week 3: Pricing for Maximum Profits (Without Scaring Away Customers)

📌 Week 4: The Referral Formula – How to Get More Business Without Paying for Leads

📌 Week 5: Systemizing & Scaling – Build a Business That Runs Without You

⚠️ The Pricing Mistake That’s Keeping You Stuck

Most plumbers price their services the wrong way:

🚫 Charging “going rates” in the area

🚫 Pricing based on what you would pay

🚫 Avoiding price increases out of fear

Here’s the truth:

Plumbers don’t go out of business because they charge too much. They go out of business because they don’t charge enough.

Step 1: Price for Profit, Not Fear

If you're not hitting at least 50% gross profit per job, your pricing is broken.

Your pricing should cover:

• ✅ Labor & Materials (marked up properly)

• ✅ Overhead (fuel, insurance, marketing, office staff)

• ✅ Profit (Minimum 50% gross margin)

Do NOT base pricing on:

• ❌ What the competition is doing

• ❌ What your gut says

• ❌ What you think customers will pay

💡 Example: If the job costs you $250 in labor + materials, you should be charging at least $500. Not $350. Not $400. $500. Minimum.

Step 2: Use Tiered Pricing to Increase Sales Without Extra Work

Here’s a huge leak: Most plumbers only offer one option. That’s a mistake. Offering 3 price tiers lets customers choose—and most pick the middle or top tier.

Smart Pricing Example:

• 🚿 Basic Drain Clearing – $325 Quick fix, no warranty

• 💦 Premium Drain Clearing – $475 Includes camera inspection + 30-day guarantee

• 🔥 Ultimate Drain Protection – $750 Hydrojet cleaning + camera + 12-month warranty

Why it works:

• Customers love having options

• Most pick the higher-value service

• You boost your average sale—without adding labor

Step 3: Make Higher Prices a No-Brainer

Customers don’t just care about cost—they care about what they’re getting.

Sell VALUE, not just a number.

❌ Wrong:

“This repair will be $750.”

✅ Right:

“We use premium-grade materials that last 10–15 years—no repeat issues or callbacks. Plus, we include a full 12-month warranty.”

❌ Wrong:

“$3,500 for the water heater.”

✅ Right:

“You’re getting a high-efficiency model that cuts energy use by 25%. You’ll save money every month, and it’s backed by a 6-year warranty.”

🔥 See the difference? One sounds like a cost. The other sounds like a smart investment.

Bottom Line: If You’re Not Pricing for Profit, You’re Pricing for Failure

🔹 Ditch “industry standard” pricing—it’s broken.

🔹Use tiered pricing to increase average job value.

🔹 Frame higher prices as value-packed, not expensive.

When you price right, you work less and earn more.

Want Help Pricing Like the Pros?

Let’s build your High-Profit Pricing Model together.

Book Your Free Strategy Call Now - Click Here to Schedule a Call

Up Next: The Referral Formula

Too many plumbing businesses hope for referrals—but hope isn’t a strategy.

Next week, we’ll cover:

• How to turn happy customers into referral machines

• The exact scripts and offers that get people excited to share your name

• How top businesses generate 30–40% of leads—without spending on ads

• Until then—price with confidence, and lead with value.

See you then.

Jim Cosmas