Plumber Performance Pay
Pay plumbers a fair hourly wage, then reward the revenue they produce above their own labor cost. TeamBuyIn calculates every threshold and payout from your Housecall Pro or Jobber jobs.
What is a revenue threshold plan for plumbers?
A revenue threshold plan pays a plumber an hourly wage plus a percentage of the revenue they produce above a weekly target. The threshold is base pay divided by the shop’s labor cost target, so the plumber earns no commission until their work covers their own labor. At $35 an hour and a 15% labor target, that threshold is about $9,333 a week.
How to set the weekly threshold
Four steps. The threshold comes straight from the wage and your labor target, so every plumber gets a number that fits their pay.
- 1
Find weekly base pay
Multiply the hourly wage by paid hours.
$35 × 40 hrs = $1,400 - 2
Pick a labor cost target
The share of revenue you are willing to spend on this plumber.
15% - 3
Divide to get the threshold
Base pay divided by the target is the weekly revenue the plumber must produce to cover their own labor.
$1,400 ÷ 15% = $9,333 - 4
Pay a percentage above it
Commission applies only to revenue above the threshold, never to the revenue below it.
10% × (revenue − $9,333)
Run your own plumber through the threshold
Change the wage, the labor target or the rate, then drag the week’s revenue.
Past the threshold, labor cost stays under the target while the plumber earns more.
What one plumber earns in five weeks
$35 an hour, 40 hours, 15% labor target, 10% above the threshold.
| Week | Revenue | Commission | Total pay | Labor cost |
|---|---|---|---|---|
| Slow week | $6,000 | $0 | $1,400 | 23.3% |
| At the threshold | $9,333 | $0 | $1,400 | 15.0% |
| Solid week | $12,000 | $267 | $1,667 | 13.9% |
| Strong week | $15,000 | $567 | $1,967 | 13.1% |
| Best week | $20,000 | $1,067 | $2,467 | 12.3% |
Below the threshold, labor cost runs above 15% because the plumber earns base pay only. From the threshold up, it holds at or under 15%. Starting points for your own math, not industry benchmarks.
Add tiers as the plumber outgrows the threshold
One flat rate stops rewarding a plumber who keeps climbing. Tiers add commission each time their base pay falls to a smaller share of the revenue they produce.
$9,333+
Opens when base pay is 15%of the plumber’s weekly revenue.
$11,667+
Opens when base pay is 12%of the plumber’s weekly revenue.
$14,000+
Opens when base pay is 10%of the plumber’s weekly revenue.
| Weekly revenue | One threshold | Recommended tiers | Extra pay | Labor cost |
|---|---|---|---|---|
| $15,000 | $1,967 | $2,063 | +$97 | 13.8% |
| $20,000 | $2,467 | $2,813 | +$347 | 14.1% |
| $25,000 | $2,967 | $3,563 | +$597 | 14.3% |
Every tier rate stays at or under the 15% labor target, so total labor cost never climbs past it. Example at $35 an hour and a 10% starting rate; adjust the tiers to fit your own numbers.
Every plumber gets their own threshold
The threshold follows the wage. A lower-paid apprentice has a lower bar to clear.
| Role | Hourly wage | Weekly base | Threshold at 15% |
|---|---|---|---|
| Apprentice | $22 | $880 | $5,867 |
| Journeyman plumber | $35 | $1,400 | $9,333 |
| Lead plumber | $45 | $1,800 | $12,000 |
A fixed-threshold variation
Some shops skip the formula and set one flat weekly number for everyone, such as $7,500, with 10% on everything above it. A $10,000 week then pays 10% × $2,500 = $250 on top of base. The formula version above adapts to each wage; a flat number is easier to explain but does not adjust as pay changes.
Revenue threshold vs. other plumber pay plans
| Plan | What it rewards | Watch out for | Labor cost |
|---|---|---|---|
| Hourly only | Paid for time on the clock | Nothing ties pay to the revenue produced | Fixed cost, even in a slow week |
| Commission on all revenue | Every dollar sold | Pays full commission on the first dollar, so labor cost can drift past the target | Rises with every sale |
| Flat rate per job | Jobs completed | Hard to price odd jobs, and pay ignores how long they take | Predictable per job, uneven per week |
| Revenue threshold | Revenue above the plumber’s own labor cost | Needs a clear weekly number to hit | Held at or under the target once the threshold is passed |
How TeamBuyIn runs the threshold
Source
Housecall Pro or Jobber
Inputs
Completed jobs and revenue by plumber
Your rules
0% below the threshold, your rate above it, by pay period
Output
A payout per plumber, every week
Visibility
Plumbers see where they stand against their threshold
Frequently asked questions
What is a revenue threshold pay plan for plumbers?
A plan that pays an hourly wage plus a percentage of the revenue a plumber produces above a weekly target. The plumber earns no commission until their revenue covers their own labor cost.
How do you calculate the weekly revenue threshold?
Divide weekly base pay by your labor cost target. At $35 an hour for 40 hours, base pay is $1,400, and a 15% labor target gives a threshold of about $9,333 a week.
Does the plumber earn nothing below the threshold?
No. The plumber is always paid the hourly wage. The threshold only controls when commission starts, so below it the plumber earns base pay and no extra.
How much commission should a plumber earn above the threshold?
Many shops start near 10% of revenue above the threshold. Test the rate against your labor target so total pay stays at or under it in a strong week.
Can a threshold plan have tiers?
Yes, and TeamBuyIn recommends it. As the plumber’s base pay falls to a smaller share of their revenue, the commission rate steps up, but never above your labor cost target.
Should apprentices use the same threshold as journeymen?
No. The threshold follows the wage, so an apprentice with a lower hourly rate has a lower threshold. At $22 an hour and a 15% target it is about $5,867 a week.
How should callbacks affect plumber performance pay?
TeamBuyIn tracks callbacks on the leaderboard and scorecards and has the ability to remove commission. We do not recommend it because laws vary from jurisdiction to jurisdiction.
How does TeamBuyIn run a revenue threshold plan?
TeamBuyIn pulls jobs from Housecall Pro or Jobber and applies your rates by pay period, so a plumber’s commission starts only after they pass the weekly threshold.