Painting
Painting Recurring Revenue Calculator
Works recurring revenue, which in painting means maintenance agreements rather than subscriptions.
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 AuditHow the calculation works
Agreements in force times the annual fee, less the cost to deliver, plus the profit on additional work those customers generate. Retention determines how many remain next year. Recurring arrangements in painting are typically commercial maintenance agreements or landlord arrangements covering turnover repaints, rather than residential subscriptions, and they provide schedulable work in quiet months.
What moves the number
- Number of agreements and the annual value of each.
- Whether the work can be scheduled into quiet periods.
- Additional work generated beyond the agreement scope.
- Retention, which compounds the base over years.
Where this one goes wrong
The scheduling value frequently exceeds the revenue value. Agreement work that can be done in February rather than June fills the months when exterior work is impossible, which keeps crews employed and overhead covered, and that is worth accepting a lower margin for. Landlord and property management relationships are the most accessible version in this trade: turnover repaints are predictable, repetitive and can be scheduled with some flexibility, which makes them useful ballast even at competitive rates.
Before you quote
- Value agreements for their scheduling flexibility as well as revenue.
- Pursue landlord and property management relationships for repeat volume.
- Track retention, since the base compounds over years.
Questions
About this calculator
Does recurring revenue exist in painting?
As commercial maintenance agreements and landlord turnover arrangements rather than residential subscriptions. Those provide predictable repeat work, and crucially work that can often be scheduled into the quiet months when exterior painting is impossible.
Are landlord repaints worth the rates?
Frequently, because they are predictable, repetitive and schedulable, which keeps crews employed and overhead covered in quiet periods. Accepting a competitive rate for work you can place where you need it is often better than a higher rate for work that arrives when you are already busy.
What is the real value of an agreement?
Often the scheduling rather than the fee. Work that can be done in a quiet month is worth more to a seasonal business than the margin alone suggests, because the alternative is a crew with nothing to do and overhead running regardless.
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 $0.
- Cost to deliver one ($). Enter your own figure; the page starts at $0.
- Renewal rate (%). Enter your own figure; the page starts at 76%.
- Extra work per member per year ($). Repairs and replacements members buy because you are already there.
- Margin on that work (%). Enter your own figure; the page starts at 42%.
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 | $0 |
| Cost to deliver one | $0 |
| Renewal rate | 76% |
| Extra work per member per year | $190 |
| Margin on that work | 42% |
What comes out
| Result | Value |
|---|---|
| Recurring revenue main result | $0 |
| Profit on the agreements | $0 |
| Profit on pull-through work | $14,364 |
| Total gross profit | $14,364 |
| Members still there next year | 137 |
$0 of recurring revenue, earning $0 on the agreements themselves and $14,364 on the work members bring back. The second number is usually the reason to sell them.
What each figure means
- Agreements in force
- A number, between 0 and 100000, starting at 180.
- Annual fee ($)
- A money amount, starting at $0.
- Cost to deliver one ($)
- A money amount, starting at $0.
- Renewal rate (%)
- A percentage, between 0 and 100, starting at 76%.
- Extra work per member per year ($)
- Repairs and replacements members buy because you are already there.
- Margin on that work (%)
- A percentage, between 0 and 95, starting at 42%.
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. |
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.