Plumbing
Plumbing Service Agreement Revenue Calculator
Project recurring revenue from an agreement book, including renewal and the work visits generate.
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
- Member count net of churn.
- Renewal rate, since the value compounds across years.
- Pull-through work per member.
Where this one goes wrong
Growing the book faster than you can deliver the visits. Every agreement is a scheduling obligation, and missed visits are the main reason agreements are not renewed.
Questions
About this calculator
How should churn be measured?
Against agreements actually due to renew in the period, not against the whole book. Measuring against the total understates it considerably.
What is recurring revenue worth beyond the fee?
Predictable work that fills quiet weeks, higher retention, and a customer who calls you rather than searching when something fails.
Should plans be discounted to grow the book?
Only from a known delivery cost. A plan sold below cost grows the book and shrinks the business, and the effect compounds.
The formula
recurring revenue = members x annual fee; total profit adds the margin on pull-through work
Put this calculator on your site
Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.
Please keep the attribution line. It is the only thing we ask in return.
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 $189.
- Cost to deliver one ($). Enter your own figure; the page starts at $82.
- Renewal rate (%). Enter your own figure; the page starts at 76%.
- Extra work per member per year ($). Repairs and replacements members buy because you are already there.
- Margin on that work (%). Enter your own figure; the page starts at 50%.
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 | $189 |
| Cost to deliver one | $82 |
| Renewal rate | 76% |
| Extra work per member per year | $190 |
| Margin on that work | 50% |
What comes out
| Result | Value |
|---|---|
| Recurring revenue main result | $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 $17,100 on the work members bring back. The second number is usually the reason to sell them.
How sensitive the answer is
Holding everything else steady and changing only annual fee, this is what happens to recurring revenue. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Annual fee ($) | Recurring revenue |
|---|---|
| $95 | $17,100 |
| $142 | $25,560 |
| $189 example above | $34,020 |
| $284 | $51,120 |
| $378 | $68,040 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Agreements in force
- A number, between 0 and 100000, starting at 180.
- Annual fee ($)
- A money amount, starting at $189.
- Cost to deliver one ($)
- A money amount, starting at $82.
- Renewal rate (%)
- A percentage, between 0 and 100, starting at 76%.
- Extra work per member per year ($)
- Repairs and replacements members buy because you are already there.
- Margin on that work (%)
- A percentage, between 0 and 95, starting at 50%.
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. |
Before you rely on this number
Pipe sizing, flow and pressure figures depend on the actual fittings, the run, the material and local code. Code requirements vary by jurisdiction and override any general calculation, so check what applies where the work is happening.
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.