Business Model · Home & Trade Services

The Plumbing Company

An essential, high-ticket, recession-resistant trade where the truck is the unit and utilization is the profit. Here is how a plumbing company actually pencils, and why recurring agreements (not emergency calls) are the real asset.

15 min experienceInteractive economicsBuilt from FDD & BLS data
Read the launch plan: every step from deciding to opening, free →
01

The Snapshot

Is this worth your attention?

$500k to $1.5M
Typical annual revenue
2-4 truck shop · AUV ~$1.27M (Mr. Rooter)
12% to 20%
Owner cash margin (SDE)
share of sales the owner keeps before their own pay
~$30/hr
Median plumber wage
$62,970/yr (2024)
$103k to $318k
Cost to open
three trucks, vans leased; typical about $126k
Medium
Day-to-day difficulty
dispatch, techs, lead gen
Low-Med
How well it runs without you
systemized with a GM

Estimated Typical bands for this kind of business, estimated from adjacent public data where no direct benchmark exists; treat them as rough. Estimates, not forecasts; a specific business varies with its location, lease, equipment and owner. Last reviewed 2026-07-07. smbnest is a self-assessment tool, not individualized advice.

A fit if you...

  • Hold or can hire a license and lead a field crew
  • Want an essential, recession-resistant trade
  • Will build recurring agreements, not just chase emergencies
  • Can run dispatch, lead-gen, and the numbers

Probably not if you...

  • Want a passive, absentee investment from day one
  • Dislike managing techs and being on call
  • Cannot recruit or retain licensed labor
  • Have no appetite for marketing and lead generation
02

Step Inside the Layout

A live look at one tool inside

This is the actual 3D floor from the full model. Drag to explore it. Inside, you configure the space yourself and watch the economics move with every choice.

Loading the live model…
Sources and method11 public sources, with the year and a link where the source gives one. The benchmark bands on this page are estimated from adjacent data and labeled as estimates.

Sources & Method

Figures are estimated from the public sources below and from adjacent data; the bands are labeled as estimates

How these numbers were built: plumber wages come from the BLS OEWS/OOH (SOC 47-2152, median $62,970/yr in May 2024); per-company revenue and owner earnings are anchored to franchise FDD Item 19 average unit volumes for a leading plumbing brand (Mr. Rooter, ~$1.27M AUV with ~$152k-$190k estimated earnings), cross-referenced against the scale of public operators (Roto-Rooter, owned by Chemed); industry structure comes from the U.S. Census Bureau (NAICS 238220); financing terms come from the SBA; and survival and loan-default signals come from Census/BLS business-dynamics data and published SBA-performance analyses. Utilization, ticket, lead cost, the labor and fleet stack, and agreement mix in the simulator are industry-typical placeholders calibrated to these sources; replace them with a real shop's numbers. FDD figures were read from public Item 19 financial-performance representations. Opening costs come from an item-by-item opening kit priced at dealers and retailers and checked against franchise Item 7 tables, and resale multiples come from BizBuySell’s sold-business data. Figures are current as of 2024-2026.

Cost ratios and operational metrics are industry-typical estimates calibrated to the Mr. Rooter FDD Item 19 average unit volume and estimated earnings range; they are not independently broken out by category in the FDD, so treat the labor/materials/marketing split as directional rather than audited.

Government data
U.S. Bureau of Labor Statistics · 2024
OEWS & OOH: Plumbers, Pipefitters & Steamfitters (SOC 47-2152), median $62,970/yr (~$30.27/hr)
https://www.bls.gov/oes/current/oes472152.htm
U.S. Census Bureau · 2022
County Business Patterns: Plumbing, Heating & Air-Conditioning Contractors (NAICS 238220)
https://www.census.gov/programs-surveys/cbp.html
U.S. Small Business Administration · 2026
7(a) loan program & size standards (specialty trade contractors)
https://www.sba.gov/funding-programs/loans/7a-loans
U.S. Census Bureau (BDS) & BLS Business Employment Dynamics · 2024
New-business 5-year survival rates
https://www.census.gov/programs-surveys/bds.html
Industry
Mr. Rooter Plumbing (Neighborly), Franchise Disclosure Document via Franchise Chatter · 2026
Item 7 estimated initial investment ($152,900 to $298,675) and 2025 Item 19 gross sales
https://www.franchisechatter.com/2026/06/21/mr-rooter-franchise-review-2026-costs-fees-news-average-revenues-and-or-profits/
ServiceTitan · 2025
Plumbing license requirements: state-by-state guide
https://www.servicetitan.com/blog/plumbing-license-requirements
Mr. Rooter Plumbing (Neighborly), Franchise Disclosure Document, Item 19 · 2024
Average unit volume ~$1.27M (median ~$1.3M, 229 US locations); estimated earnings ~$152k-$190k
https://www.franchisechatter.com/2024/06/05/fdd-talk-mr-rooter-franchise-costs-fees-average-revenues-and-or-profits-2024-review/
Market & valuation
BizBuySell · 2025
Plumbing business valuation benchmarks: median sale about $639k on about $1.17M revenue; median 2.24× SDE (sold 2021 to 2025)
https://www.bizbuysell.com/learning-center/valuation-benchmarks/plumbing/
Insureon · 2026
Plumber insurance cost: median premiums by policy
https://insureon.com/construction-contracting-business-insurance/plumbing/cost
Crestmont Capital: analysis of SBA loan performance data · 2026
SBA loan default (charge-off) rates by industry
https://www.crestmontcapital.com/blog/sba-loan-default-rates-by-industry
Regulatory
Contractors State License Board (California) · 2026
List of all CSLB fees: $450 application, $200 to $350 initial license
https://www.cslb.ca.gov/about_us/library/fees.aspx

This is just the surface

The full model is the complete, interactive deep-dive, and every business here is built to the same standard: a live economics simulator you tune to your own numbers, an interactive 3D walkthrough, a location scorecard, an owner-fit assessment, a buy-versus-build comparison, and the full breakdown of how it makes money and what quietly kills margin.

Monthly
$99 for your first 3 months

then $29 a month

Time to choose and start, then month to month.

$99 today for your first 3 months, then $29 a month until you cancel.

YearlyBest price
$199 a year

about $17 a month

The best price: a year to decide, open and run it.

$199 today, then $199 each year until you cancel.

Renews until you cancel. Cancel any time from your account; you keep access to the end of the period you paid for, and your saved plans stay in your account. What membership opens

smbnest is a self-assessment tool. It does not give individualized financial, investment, legal or tax advice. Figures are estimates and benchmarks, not forecasts. Speak with a qualified financial adviser and a licensed attorney before you start, buy, finance or sign anything.