Fixed Price vs Hourly Rate — Which Is Better for Plumbers?
Quick Answer: Use fixed price for defined jobs (installations, replacements). Use hourly rate for investigation/diagnostic work and maintenance contracts. Most successful sole traders use a mix of both.
Fixed Price — Pros and Cons
Pros:
- Customers love certainty — no bill shock
- You can earn more per hour if you're fast and efficient
- Easier to quote over the phone for standard jobs
- No need to track time on-site
- Customers don't feel like the meter is running (more relaxed)
Cons:
- If the job takes longer than expected, you absorb the loss
- Hidden problems (rotted timber, non-standard fittings) eat into profit
- Pressure to rush to maintain margin
- Need experience to quote accurately
Hourly Rate — Pros and Cons
Pros:
- You always get paid for your time
- No risk on complex/unknown jobs
- Fair for diagnostic work where scope is unclear
- Simple — no need to estimate job duration
Cons:
- Customers feel anxious watching the clock
- Perception that you might work slowly to charge more
- Harder to win jobs — customers prefer knowing the total upfront
- Income capped by hours worked (can't earn more by being efficient)
When to Use Each
| Job Type | Pricing Method | Why |
|---|---|---|
| Tap replacement | Fixed price | Known scope, standard job |
| Hot water install | Fixed price | Defined scope after site visit |
| Leak detection | Hourly (capped) | Unknown duration |
| Blocked drain | Fixed (with exclusions) | Standard process, but note exclusions |
| Bathroom reno plumbing | Fixed (after site visit) | Large job, customer needs certainty |
| Maintenance contract | Hourly | Ongoing, varied work |
The Hybrid Approach (Best of Both)
The most profitable approach: quote fixed price but build in a buffer. If you think a job will take 2 hours, quote for 2.5 hours of labour. You finish in 2 hours, the customer is happy with the fixed price, and you've effectively earned more per hour.
Over time, you'll build a mental database of how long jobs take. That's your competitive advantage — accurate quoting that's profitable for you and fair for the customer.
TradeDesk helps you track job durations so you can quote more accurately over time. Try it free for 21 days.