How to Quote Plumbing Jobs

• Calculate Labor – This is the estimated number of hours for the job multiplied by the number of servicemen required.
• Estimate Materials – The cost of each part (piping, hot water tank, etc.) multiplied by the sales tax rate.
• Calculate Overhead – A job’s overhead cost (rent, insurance, tools, licensing) is calculated like this: monthly overhead ÷ monthly billable hours × job time.
• Add Up Costs – Add the labor sum to the cost of each material and the overhead to get the subtotal.
• Add Profit Margin – Most plumbing companies aim for a 20-30% profit margin. This can be achieved using the following formula: final price = cost ÷ (1-profit margin).
• Complete quote – The written quote can then be prepared for review by the customer, who will sign if they agree with the stated price.