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By Vic Bachman September 10, 2025
A Straightforward Answer To What A Water Heater Costs. How much do you charge for a water heater? This may seem like an easy question to answer, yet it’s almost impossible to get a company to provide a price over the phone. Most will tell you they can’t give a quote because each installation is different and requires seeing the job beforehand. While that is sometimes true, the reality is that most water heaters fall within the parameters of a standard installation. My plumbers all have a price book, and the majority of jobs fit those guidelines. So why can’t I give you a price over the phone? The truth is—I can. The first thing you need to know is that plumbing products, such as water heaters, are like cars, appliances, or furniture: there are different options, parts, and accessories. The cost of a water heater is not the same as the price of the heater itself. When you look online or at a home center website, you are only seeing the cost of the unit—not everything required to install it. If I quote a price over the phone, people often compare it to a much lower number they saw online, which creates confusion. Why is the plumber’s cost so much more? The answer is that when you hire a plumber, you pay not only for the heater but also for everything that comes with it: the accessories, the installation, and the assurance that it is set up safely and properly. There is more to the job than just the unit and labor. _______________________________________________________________________________________ Example: 40-Gallon Water Heater Installation Professional Grade 40-gallon Ultra Low Nox water heater: $1,374.64 Water connections (water flex or dielectric unions): $51.60 Gas connections (gas flex or pipe and fittings): $23.65 Vent connections: $34.53 Earthquake straps: $30.31 Thermal expansion tank and fittings: $63.41 Floor and ceiling saver pan. $51.75 Water alarm: $49.91 T&P valve drainpipe: $9.90 Haul-off and disposal of old unit: $100 Red carpet home protection (products to protect your home) $ 40 Total for parts: $1,829.70 Labor: $828 Total cost for job: $2,657.70 _______________________________________________________________________________________ Why Our Prices Differ from Online Prices? Now you can see what goes into our pricing and why it differs from what you find online. There are several reasons why prices vary, but the most important is the quality of the products themselves. Manufacturers make different heaters for different markets. They produce commercial-grade heaters, professional-grade heaters, and retail-grade heaters , each with varying levels of quality and durability. They also market them under multiple brand names. Major U.S. Water Heater Manufacturers There are three main manufacturers of water heaters in the United States: A.O. Smith, Rheem, and Bradford White. A.O. Smith manufactures under multiple brands, including A.O. Smith, State, American, Lochinvar, Reliance, Takagi, and Whirlpool. Rheem produces heaters under the names Rheem, Ruud, and GE. Bradford White produces heaters under Bradford White and Laars. The heaters sold at home centers may look nearly identical to professional-grade models but are not built to the same specifications. For example, home center units often use lower-cost components, such as plastic drain valves instead of brass and smaller aluminum anode rods instead of a larger magnesium anode rod that comes in a professional water heater. Warranty Differences One of the biggest differences for consumers is the warranty. Professional-grade heaters : come with a 6-year tank warranty*, 6-year parts warranty*, and 1-year labor warranty directly from the manufacturer. Home center heaters : Come with what looks like a 6-year warranty* but when looked at closely it is a prorated warranty that must be handled through the store rather than the manufacturer. These units often carry a sticker stating: “Stop. Do not return this product to the place of purchase.” Instead, you must call a support line, which directs you to a call center—not the manufacturer’s warranty support. *(Warranties come in 6, 10, and 12 years.) This means that when something goes wrong, the homeowner must work through the store. When we, as plumbers, try to get parts or provide warranty service for these retail-grade heaters, the manufacturer tells us that the homeowner must go back to the retailer. _______________________________________________________________________________________ The Cost of Labor The cost of labor is another key factor. Professional plumbers charge different rates depending on their business structure, but labor costs are more than just the time spent in your home installing the unit. Labor costs include: Marketing expenses Staff for answering phones and scheduling work Warehouse overhead, licensing, taxes, and insurance Vehicle expenses, including fuel and insurance. Wear and tear on tools and equipment costs In addition, there is time spent: Picking up the product Driving to your home Removing the old water heater Installing the new heater Hauling away and disposing of the old unit All these elements are built into the labor charge. As a consumer, you are paying not only for the plumber’s time but also for peace of mind, knowing the work is being done correctly and safely. _______________________________________________________________________________________ Final Thoughts When you purchase a water heater from a plumber, you’re not just buying the unit you’re investing in a complete service that includes the heater, all required parts, professional installation, warranty support, and proper disposal of your old system. We are happy to share our prices with you and will gladly answer your questions by email, phone, or in person. If you would like to email us a picture and information about your water heater and the surrounding area, we can often provide a more accurate estimate without needing to visit your home. 📧 Please send emails to: Vic@mikebachmanplumbing.com Please include: · A picture of the heater and surrounding area. · A picture of the rating plate I will review your information and get back to you as soon as possible.