Landscaping
Landscaping Recurring Revenue Calculator
Model the recurring portion of the business against its one-off installation work.
Result
Agreements often earn little on the fee alone. They are worth having for the access, the retention and the work members buy without shopping around, so judging them on the fee margin alone undervalues them.
Get a Free Business AuditWhat moves the number
- Contracted value per property per year.
- Retention across seasons.
- Delivery cost, since every contract owes visits.
Where this one goes wrong
Valuing recurring revenue without its delivery obligation. Every contract owes visits at specific times, and a book larger than your crew capacity produces missed visits and cancellations rather than income.
Questions
About this calculator
Why is recurring revenue valuable in landscaping?
It smooths a seasonal business, it makes crew planning possible, and it is generally viewed favourably if the business is ever sold. Those are worth more than the amount alone.
How much can be recurring?
In maintenance-led businesses, most of it. In installation-led ones, little. Which model you are running determines how much recurring revenue is realistically available.
What is the main risk?
Capacity. Recurring revenue is an obligation to be somewhere on a schedule, and overselling the book is how service quality collapses.
The formula
recurring revenue = members x annual fee; total profit adds the margin on pull-through work
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How to use this calculator
- Agreements in force. Enter your own figure; the page starts at 180.
- Annual fee ($). Enter your own figure; the page starts at $1,800.
- Cost to deliver one ($). Enter your own figure; the page starts at $1,050.
- Renewal rate (%). Enter your own figure; the page starts at 76%.
- Extra work per member per year ($). Repairs and replacements members buy because you are already there.
- Margin on that work (%). Enter your own figure; the page starts at 44%.
The result updates as you type, so you can try a figure, see what it does to recurring revenue, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Agreements in force | 180 |
| Annual fee | $1,800 |
| Cost to deliver one | $1,050 |
| Renewal rate | 76% |
| Extra work per member per year | $190 |
| Margin on that work | 44% |
What comes out
| Result | Value |
|---|---|
| Recurring revenue main result | $324,000 |
| Profit on the agreements | $135,000 |
| Profit on pull-through work | $15,048 |
| Total gross profit | $150,048 |
| Members still there next year | 137 |
$324,000 of recurring revenue, earning $135,000 on the agreements themselves and $15,048 on the work members bring back. The second number is usually the reason to sell them.
How sensitive the answer is
Holding everything else steady and changing only annual fee, this is what happens to recurring revenue. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Annual fee ($) | Recurring revenue |
|---|---|
| $900 | $162,000 |
| $1,350 | $243,000 |
| $1,800 example above | $324,000 |
| $2,700 | $486,000 |
| $3,600 | $648,000 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Agreements in force
- A number, between 0 and 100000, starting at 180.
- Annual fee ($)
- A money amount, starting at $1,800.
- Cost to deliver one ($)
- A money amount, starting at $1,050.
- Renewal rate (%)
- A percentage, between 0 and 100, starting at 76%.
- Extra work per member per year ($)
- Repairs and replacements members buy because you are already there.
- Margin on that work (%)
- A percentage, between 0 and 95, starting at 44%.
What the results tell you
| Result | What it is |
|---|---|
| Recurring revenue | The headline result. A money figure. |
| Profit on the agreements | A money figure. |
| Profit on pull-through work | A money figure. |
| Total gross profit | A money figure. |
| Members still there next year | A number. |
Seasonality is not in this
Coverage and material figures assume the area you enter. Slope, access for machinery, existing growth and the time of year all affect both quantity and labour, and none of them appear in a calculation like this.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.