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How much on average do plumbers spend on supplies (materials, tools etc.) per month?

Dear All,
I am currently a student in my final year at the Uni of Manchester studying Business a. For a module I am taking, Investment Economics and Innovation I have had to think of an innovative project and carry out a project appraisal to show whether it is economically viable and worth investing in.

My project is starting up an all-female plumbing company in Greater Manchester, targeting the elderly and female domestic markets.

I am not a plumber and have no experience with plumbing.

I have a few questions that I can’t find answers to on the internet. If anyone has a few minutes I would really appreciate your knowledgeable and experienced insight into my questions.

My questions:
1. How many employees are there in your business and how much do they earn monthly/ annually?
2. How many hours per day/week does each employee work?
3. How much do you charge for your services on average per hour?
4. Do you charge extra for materials used per job?
5. How much on average do you charge extra for materials and do you make a profit on these materials?
6. What is your average monthly cost for supplies, tools, equipment?
7. Who are your suppliers?
8. How much on average do repairs on equipment, tools, and vehicles cost per month?
9. What were the start-up costs for your business?
10. What is your average monthly income for the business?
11. What is your average turnover per year?
12. How long was your payback period?

ANY information you could provide me would be extremely appreciated, especially regarding business turnover, hours work per week per employee and the costs of supplies per month.

Please feel free to contact me via email alex.c.tait@gmail.com

THANK YOU :)

Alex

1 Answer from a MyBuilder Plumber

Best Answer

hey
i hope this can help a little

My questions:
1. How many employees are there in your business and how much do they earn monthly/ annually?

We have two employyee, a weekly wage is £750.00 (£150.00 per day) this is before tax. (20% tax to be deducted under cis scheme)
We are able to provide at least 45 weeks work within the year.

2. How many hours per day/week does each employee work?

8 hours shifts 5 days a week.

3. How much do you charge for your services on average per hour?

Jobs vary depending on the situation, if it is a pre quoted job it would be based on a day rate of £200.00 plus materials.
If its little jobs like fixing taps etc we base rates on £35.00 per hour with a min charge of £50.00.
Other jobs like drain blocks etc are around £35.00per half hour but we are extremly honest and use our discretion. We stock all materials on our van and if we need to go to a supplier we stop the clock and dont charge,

4. Do you charge extra for materials used per job?
All materials are charged as per shop price plus 15%

5. How much on average do you charge extra for materials and do you make a profit on these materials?
as above 15% on top of price to cover collection or materials.

6. What is your average monthly cost for supplies, tools, equipment?
Supplies depends on jobs but we spend around £4,000 on supplies but of course this is not a cost as it is claimed back from customer.
Tools are the biggest outlay and a start up cost of tools for a opeational plumber would be around £8,000. Our yearly cost of tools is about £2200 this covers basic tools, equipment also office computer and printer etc
7. Who are your suppliers?
HPS - PLUMBBASE - TLC and occasionaly screwfix, BBQ, Wicks

8. How much on average do repairs on equipment, tools, and vehicles cost per month?
£150.00 on a month

9. What were the start-up costs for your business?
I start off doing very small handy man jobs and collected all my tools, but i would say you would need about £10,000 for a small van tools and local advertising.

10. What is your average monthly income for the business?
on my own would be around £8500 without materials and without tax deductions, as a company we gross £21,000 but we have other areas we cover not just plumbing.
11. What is your average turnover per year?
240,000 estimate
12. How long was your payback period?

Hope this helps, if you needs any more information please email me
info@aspiringservices.co.uk

Terry Matthews

2012-04-19T12:00:04+01:00

Answered 19th Apr 2012

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