Ask Coach Craig

By Craig Lourens – Business Coach

Profit Leaks: 5 Places Your Plumbing Business is Losing Money (And How to Tighten the Wrench)

Craig Lourens, Business Coach. © Plumbing Africa

Every plumber knows the damage a hidden leak can cause. At first, it’s just a drip. Over time, it becomes a flood—eroding margins, draining energy and rusting out any hopes of long- term growth.

What’s true in plumbing is just as true in business.

In my years coaching trade businesses across South Africa, I’ve found that profit leaks rarely come from one big burst pipe. They come from small, unnoticed issues—leaks that compound until your business bank account is permanently running low.

Let’s identify five of the most common ‘profit leaks’ in a plumbing business and how to tighten the wrench before your hard-earned money flows down the drain.

1. Uncharged Time

The Leak:

Your team clocks in a full day but only bills for five out of eight hours. Travel time, sourcing parts, quoting and those 15-minute ‘quick chats’ with customers? Unbilled.

The Fix:

Start tracking every job from dispatch to payment. Use job management software or even a simple time-sheet system to track all time. Then, build that time into your pricing model—yes, even the quote prep and travel.

2. Pricing Based on Guesswork

The Leak:

Many plumbers set their prices based on what others charge or what they ‘think’ the market will tolerate. That’s like sizing a pipe with your eyes closed.

The Fix:

Price for profit—not survival. Know your break-even hourly rate. Then build in the margin you need to reinvest in your team, equipment and growth.

3. Discounts Without Strategy

The Leak:

‘Let me knock off R500’ might feel like good customer service—but it’s usually poor business.

The Fix:

If you must discount, do it with strategy. Offer bundled value, early payment incentives or seasonal promotions with clear limits. Never discount reactively—discount deliberately.

4. Poor Team Utilisation

The Leak:

One team member takes twice as long to complete a job. Another forgets tools and wastes time returning to base.

The Fix:

Train, measure and mentor. Have clear job KPIs. Track completion times and customer feedback. Hold short daily toolbox talks and weekly huddles.

5. Lack of Follow-Up = Lost Sales

The Leak:

You quoted 15 jobs last week. Only five confirmed. What happened to the other 10?

The Fix:

Create a simple follow-up system. Use a spreadsheet, a CRM, or a task manager to follow up every quote within 48 hours.

Final Thoughts: Plug the Leaks Before They Wreck the Road Every plumbing business leaks profit—it’s not a matter of if, but where. The danger isn’t just the drip, it’s what happens if you ignore it.

As Brad Sugars often says: “First, it’s a tap dripping. If you don’t fix it, it becomes a 2×4 smacking you in the face. Still don’t act? Next thing, you’re hit by a Mack truck.”

In other words—small issues become big ones. What starts as a few missed billable hours or underpriced quotes turns into a full-blown cash flow crisis.

Don’t wait for the truck. Fix the tap now.

Plug the leaks, sharpen your systems and build a plumbing business that doesn’t just survive—but thrives.

Register for free to gain access the digital library for Plumbing Africa publications