Photo Credit: MoToMo
I am not a 24-hour plumber. In fact, I am not very handy around the house at all.
If I can’t fix something with a hammer or screwdriver I prefer to pay somebody else to do the work. That’s why I decided to get a professional to reroute and install new plumbing hardware during our recent kitchen remodeling adventure.
He Said It Would Cost HOW Much?
The Honeybee was put in charge of getting estimates from Los Angeles area plumbers. When I got home from work, she presented me with three estimates:
Plumber 1: $450
Plumber 2: $485
Plumber 3: $1,085 (after an applied ten percent discount!)
Now, if you’re like me, you’re probably wondering how the third plumber could be so much more expensive. I figured the guy must have made a math mistake, but when I examined his estimate sheet it was obvious that there was no mistake.
Even more interesting, the first two plumbers’ prices included new shut-off valves and some miscellaneous PVC piping required to finish the job, while the third plumber’s estimate didn’t!
The Honeybee questioned the third guy as to why his prices were so high and he swore his quoted prices were “the going rate.” In fact, to drive home his honesty he even went out to his truck and showed her “the price book.” This book had a list of all kinds of plumbing repairs and procedures and their associated prices.
So what’s going on? How do guys like Plumber 3 stay in business anyway?
Well, I spoke with the plumber we eventually selected about the huge disparity in the price estimates we received. He was kind enough to let me in on how the plumbing industry works and, more importantly, how not to get ripped off.
Not All Plumbers Are Created Equally
There are basically two types of plumbing companies: small-scale family-owned operations, and larger-scale corporations.
As luck would have it, we got estimates from both. It turns out that our two cheapest plumbing estimates came from small-scale family-owned businesses that were sole-proprietorships. The most expensive plumbing estimate came from a large corporation.
Surprised? You shouldn’t be.
So why are the larger corporate plumbing companies usually so much more expensive? Believe it or not, it’s often because their plumbers work on commission, which encourages them to oversell you on goods and services. In essence, this has turned many plumbers into salesmen whose first priority is to grow their employer’s business as quickly as possible, rather than get your plumbing problem fixed for the lowest price possible.
But, Len, you said the corporate plumber showed the price book!
Yeah, I did, but when it comes time to comparing estimates between plumbers, price books don’t mean diddly.
Oh sure, plumbers that work on commission like to show “the price book” to you in order to convince you that’s what every plumber charges for a given repair procedure. Don’t be fooled; that book only tells you what their company charges. The reality is every plumber has his own uniquely-priced book.
Commission-based sales is not the only reason larger corporate plumbers are more expensive. These large companies have overhead issues that the smaller family-run businesses don’t. For example, they have to maintain a fleet of trucks, and pay for worker’s comp insurance.
So how do these higher-priced plumbers manage to stay in business? The cold reality is their prices are so high it only takes a couple sales to more than make up for all the jobs they lose to savvier shoppers who do their homework.
How to Find a Plumber
Here are several tips to help ensure you find the right plumber at the right price:
1. When possible, get references. There is no better endorsement for anyone than a word of mouth recommendation based upon some one’s personal experience. That’s why when it comes to contractors of all types – electrical, plumbing, general construction, etc. – my neighbors and I typically ask each other for potential references before getting a repair made or starting a project.
2. Get a minimum of three estimates. Knowledge is power, so always get at least three estimates before agreeing to have any work done. Otherwise, you may end up paying a lot more than you need to.
3. Stay away from plumbers who advertise on radio and television. Those ubiquitous ads cost big money, people. Don’t think you won’t ultimately end up paying for that aggressive marketing in the form of higher labor prices.
4. Focus your search on small family-owned plumbing businesses. I’ve already explained that smaller family-owned businesses have lower overhead, so they can pass those savings on to the customer. They also don’t work on commission so you’re less likely to be oversold on services you don’t really need. Finally, although I can’t prove it, it is my opinion that these sole-proprietorships also have the added incentive of consistently providing the best service because they typically have smaller advertising budgets and, therefore, depend more on personal recommendations.
5. Know that not all plumbing companies are what they seem to be. When deciding who to call, be careful; sometimes larger plumbing corporations will feature a photo on their website or in an advertisement of some random “model family” to give the impression that their company is a small family-owned sole-proprietorship.
6. Make sure your plumber has a contractor’s license. There are lots of good reasons for making sure your plumber has a contractor’s license. Perhaps the most important is that licensed contractors are required to complete work in compliance with state mandated procedures that are designed to protect us from shoddy workmanship and potential serious health issues resulting from improper plumbing practices. You can usually check out your state contractor’s web site to verify the status of any licensed plumbing company including any registered complaints and ownership details.
7. Get an itemized parts estimate from your plumber and then comparison shop. Plumbers get their parts from wholesale outlets not open to the general public, and those parts are generally not only of better quality than what you’ll find at warehouse home improvement stores, but they are often of comparable price.
8. Coupons and instant discounts do not guarantee competitive prices. Plumbers will often try to lure you in with the promise of a price discount. In our case, the corporate plumber was still more than twice as expensive as the others even after the discount.
9. Try to avoid scheduling work on holidays and weekends. Sometimes a plumbing emergency comes up that requires immediate attention. Just keep in mind that plumbers charge a premium for working on weekends and holidays so, if you can help it, always try to schedule your plumber on a weekday.
Oh, and no matter what day of the week it is, always be sure to tell your plumber to keep his price book in the truck.
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#7: With regards to comparison shopping on parts, I can tell you this: I work for a plumbing supply distributor, and we are in fact open to the public (but maybe that’s just because we’re awesome). We’ve now got 24 or so (it’s hard to keep count) branches across the state, and they all resemble the little hardware store that Tim the Tool Man Taylor went to in Home Improvement. Open to the public, but not much in the way of packaging for regular Joes to know much about the products. However, and this is a big however… your plumber will get a better price from us than you will. There are no price tags, because everybody’s price is different. Since even the family-owned small plumbing shop across town does a heck of a lot more business with us in a month than you will ever do in your lifetime, they get not the best (the big corporate shops get those), but much better prices than you, a simple homeowner. Also, don’t go in on a Saturday. Prices go up on Saturdays
If anything, if you’ve got a large, expensive project to tackle (such as a water heater), see if any of your friends or extended family members happens to work for a plumbing supply house. Fat chance, but doesn’t hurt to ask. They may be able to get you either a nice discount, or possibly even employee pricing, by buying it for you. I could’ve saved you another $75 or so on top of the $400 you already saved by doing it yourself.
End ramble.
A couple of things to keep in mind, you received a very biased explanation and most of the large corporations offer guarantees (date/time of arrival, etc.) and warranties while most of the family businesses do not. While I haven’t used a plumber, I have noticed the price dichotomy in other home repairs as well (though nothing like your discrepancy). We saw it with both the roof and flooring, but I have to wonder if he adjusted his price because it was your wife he was talking to.
This is a great post. We would never attempt any plumbing project because my husband knows nothing about it and flood damage can kill your house. My dad was a great handyman and that was the one home project he would not tackle either.
I hate to say it, but I wonder what the corporate price would have been if he was talking to you vs. your wife. If he was opportunistic, he may have under-estimated your wife!
Thanks for this! I always shudder every time I have to call the plumber.
In the past, I’ve hired sole-proprietor plumbers through word of mouth. Though, your tips on getting a few quotes and making sure they’re licensed are great (I’ve never thought to do this!) However, this post is making me thankful I’m moving back into an apartment unit next week – ie. I don’t have to hire any repairmen for a while!
Len, Great write-up. I’m actually in the middle of a series on negotiating various things (one of which is contractors like plumbers). Don’t know if i’ll do it justice after reading your great post…I shouldda had you guest post! (of course you are still welcome to anytime).
Let the plumbers know you are comparison shopping, when you have documentation that Plumber ABC charges an amount that Plumber XYZ charged less you can usually negotiate a little bit.
10. Develop a relationship with a good plumber. – I have had the same plumber for years now. I think he is fair even though I no longer compare prices for various work he has done at my house. He is the same guy who walked with me through the house that I ended up buying so that he could tell me how the plumbing looked. He has also been at my house for emergencies in the middle of the night, most of the times free of charge. I am willing to pay extra so that I can enjoy his impeccable service if I even pay extra.
@Jake: Ramble much appreciated, sir! Thanks for the great information. I just wish I knew about this before I got my water heater replaced last year. Oh well.
@mdb: Granted, the summary was biased, but our experience backs up his point of view. That’s not to say some larger corporate plumbers may not be as competitive – but I’ll bet that is the exception rather than the rule. As for the corporate guy adjusting his price because he was talking to the lady of the house, that may be true – but the other plumbers also dealt with her too and they didn’t jack their prices up.
@Everyday: Thanks, Kris! As I mentioned to mdb, all three plumbers talked to my wife. If he inflated his estimate to try and take advantage of her, he was the only one to do so.
@Jenny: No need to shudder. I think there are many many reputable plumbers out there willing to give great service at a fair price. The best way to protect yourself is to get multiple estimates – the more the better.
@LittleHouse: Good luck in your new apartment, Jen!
@Coach: Thank you. That’s very nice of you to say.
@Jenna: Great advice.
@MoneyO: More great advice. I feel the same way about car mechanics.
Great tips, Len. I rent now but when I owned a house, I went with a small family company of contractors. They could do everything from repair a leak in the slab to replacing the wood trim. Their references sounded like they wanted to marry them. All this and for such a low price I almost gave them extra money (but I didn’t).
That sounds almost too good to be true, Jen! I know you live in another state, but will they make house calls in California?
I’m pretty sure they’re too busy here in Texas to go anywhere else! Maybe if you made them an offer they couldn’t refuse?
Also, get the quotes in writing.
I had a plumber who quoted us one price and then when we got the bill it was 50% over his estimate. He clearly low balled us to get the business and then tried to stiff us on the back end. What a loser. We refused to pay the bill and gave him 10% more than his estimate and told him to sue us if he wanted the rest.
I saw a magnetic plumbing sign on a guy’s truck in my neighborhood and have been using him, lol. He charges about the same as we have been charged in the past, but I like the fact that I know where he lives (so far, it’s moot since his work is awesome, but still).
@FirstGen: Now that takes some chutzpah on your plumber’s part! I think you handled the situation perfectly. Well done.
@BIFS: Knowing where the guy lives is terrific leverage, to be sure, Mrs. BIFS! LOL If you’re happy with the service he provides and the prices he charges, then what more can you ask for?
This article is just stupid. The first 2 estimates were much lower because those two plumbers have no idea what their expenses are to be running a business and they lose money on every job – or maybe they like earning $50 a hour. I am a licensed professional plumber in New York and I charge $275 per hour. I have been in business for over 15 years and my rates go up every year. My customers love me, love my business and appreciate the peace of mind knowing they can call 2pm or 2am.
And yes, I use a flat rate price book and I am not a huge corporation.
Len, your an idiot for writing such a biased article. Seems like a “huge company” ripped you a new one and your panties are in a bunch.
You seem to make a lot of wild assumptions about the other plumbers. All three of the plumbers I selected were licensed. They also have been in business for years. They also are available 24 hours.
Call me an idiot if you must, but it seems to me that you feel a bit threatened by the fact that there are plenty of plumbers out there who are making a comfortable living charging much less than $275 per hour — and giving their customers quality service to boot.
Thanks for the article. I’m always weary of being ripped off by services such as plumbing. I ended up getting about 8 quotes over the phone. I noticed that the big companies refused to give any quotes over the phone, but said they would rather have someone come out for a free estimate. Sounded like a cop out to me seeing how most everybody else could tell me how much a typical drain cost to unclog.
thanks!
As a plumber myself, I appreciate the plumbers who charge ridiculous prices, it gives me more business! The great thing about offering lower prices is that generally people will want to stay with a smaller family owned plumbing company who gives them decent rates.
As to the NYC plumber charging $275 per hour. If he works only a 30 hour week (allowing for travel and cancellations) his gross revenue is over $400,000 a year. After allowance insurance, vehicle costs, shop costs, office help, marketing and accounting he must clear at at least a quarter-million dollars annually. Makes you wonder.
You hit the nail on the head. I always use the smaller plumbers. In fact, Weezoo.com offers leads and appointment scheduling to small plumbers for as low as $50 per month. Weezoo checks out their references and licenses, plus allows customers to rate them.
Weezoo.com does all the advertising for them and delivers customers, based on their availability. They get the benefit that the big guys enjoy for a lot less money. Those savings are passed on the us.
That is why, I use Weezoo.com for all my service needs.
Hi, I work for a small plumbing company that charges a little more than others and in all honesty (especially with the one I work for) you get what you pay for. In our company we charge more because we have guys that train and learn non-stop, are drug tested and are in my opinion the best techs I have ever met. People you can trust. The guys charging the low prices are ill trained and in alot of cases (this is from experience people)the bottom of the barrel of society. It is not ripping the customer off when you provide constant training, hire decent trustworthy people and will stand by your work no matter what. It just costs alot more to do so.
Another thing you have the pricing structure you mention backwards in most cases. Large corps. charge lower prices in most markets because they buy things like water heaters in bulk (the Walmart effect) and hire techs that don’t know a water heater from a kitchen faucet. That get venting on this like gas water heaters wrong and set up things like carbon monoxide horror stories you see on the news.
I know we all need to save a buck here and there but skimping on the professional that installs the gas water heater in our homes or installs anything that could potentially damage the property we work so hard to maintain kind of seems a little assinine. I really understand where the writer of this piece is coming from and the prices he posed are probably an extreme case but I’d sleep better knowing that the alcoholic using cousin Earl’s license (they can legally do this people !!) isn’t working in my home.
Thanks for your comments, Jim. But, “The bottom of the barrel of society”? Maybe that’s true with fly-by-night unlicensed charlatans posing as plumbers, but with all due respect, it comes off as extremely disingenuous and misleading if you are suggesting that also applies to legitimate, licensed, sole-proprietorship small plumbing companies.
As for the pricing structure being backwards: How can that be? My experience is certainly not extreme by any measure. Large companies have much higher overhead costs and, most importantly, lots of employees to pay — and as we both know, labor costs are the most expensive part of running any business. Basic business economics strongly suggests to me that a larger company’s ability to buy water heaters as you mention in bulk at a discount will not begin to make up their price disadvantage they suffer due to their higher labor and overhead expenses.
This isn’t the first time I’ve gone with a licensed, local mom-and-pop plumbing business. I’ve never experienced any of the issues you’ve mentioned — and if I did, I’d still have some measure of recourse because they’re licensed.
I own a small company that provides services like Plumbing, and Handyman Services. I try to keep my prices in line with other companies and give all my customers 100%. One thing that I think some customers over look is that when we have to go and get the parts and materials for your job, that it takes time.
We have to shop for parts drive around to get the materials. Also some jobs can be estimated over the phone but some can not. Over the phone estimates can become a problem for the customer and or the company you run into unknowable things all the time. And if you give a price over the phone and then you get there and it is different than you expect then the customer can get mad because the price will have to be changed. Don’t get me wrong I like keeping my company small and personable. I like having a good relationship with my customers, However I try to make it clear to all of them that since I can’t carry everything in my van that sometimes i have to go and pick up parts and, like I said it takes time and gas to do so. If I did not take that into account when pricing a job I would lose money. I also agree that you get what you pay for. And you get more than just some person to change a water heater. You get someone with the knowledge to change the water heater. It is not free for us to learn the trade. most of us pay more for a TV or Computer to get warranties I Think the company making the TV should back up the product, But to do that they would still have to charge more for that TV to not lose money. And as far as over charging for holidays, and weekends we sometimes have to jump up from dinner with our families leave on Christmas day or get all call in the middle of the night. I think that if someone who thinks it is unfair to pay more for emergencies Have a friend call you at 2am and get up drive to his house and work for a hr. or 2 and see if you think it is still unfair. I know times are hard for people but it is just as hard for the small company owner. I think it is wrong to rip off a customer but some of us need to make sure we know the meaning of getting ripped off vs paying more for getting more Thanks for listening
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