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Plumbing

Plumbing Recurring Revenue Calculator

What a book of plumbing agreements is worth, including the repair work members bring back.

Your numbers

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$
%
$
Repairs and replacements members buy because you are already there.
%

Result

Recurring revenue $34,020
Profit on the agreements $19,260
Profit on pull-through work $17,100
Total gross profit $36,360
Members still there next year 137
$34,020 of recurring revenue, earning $19,260 on the agreements themselves and $17,100 on the work members bring back. The second number is usually the reason to sell them.

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.

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Questions

About this calculator

What if the fee barely covers the visits?

That can still be a good agreement, provided pull-through work is real and you measure it. If members buy no more than non-members, the fee margin is all there is and it needs to stand up on its own.

Why does renewal rate matter so much?

Because the acquisition cost is paid once and the value arrives over years. A book renewing at 60% is worth a fraction of the same book at 85%, however similar they look this month.

The formula

recurring revenue = members x annual fee; total profit adds the margin on pull-through work

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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.