Roofing
Roofing Customer Lifetime Value Calculator
Work out what a roofing customer is worth, where referral matters more than repeat purchase.
Result
Gross profit, not revenue, because revenue you spend delivering the work is not available to spend winning customers. Referrals are the least reliable input here; measure yours rather than assuming.
Get a Free Business AuditWhat moves the number
- Referrals generated, which is the main source of ongoing value.
- Repairs and maintenance between replacements.
- Whether the customer owns other properties.
Where this one goes wrong
Applying a service-trade lifetime value model to roofing. A roof is replaced once in decades, so the repeat revenue assumption that works for plumbing or HVAC does not transfer.
Questions
About this calculator
Do roofing customers repeat?
Rarely for replacement, sometimes for repair and maintenance. The value is mostly in referral and reputation rather than in the customer buying again.
How should referrals be valued?
Tracked rather than assumed. Asking every customer how they heard of you is the only way to know which jobs generate referrals and which do not.
Does commercial differ?
Considerably. A commercial property owner with several buildings can genuinely repeat, and maintenance contracts make the relationship ongoing in a way residential rarely is.
The formula
lifetime value = average job x jobs per year x years x gross margin
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How to use this calculator
- Average job value ($). Enter your own figure; the page starts at $9,800.
- Jobs per customer per year. Enter your own figure; the page starts at 1.4.
- Years they stay. Enter your own figure; the page starts at 6.
- Gross margin (%). Enter your own figure; the page starts at 34%.
- Customers they refer. Enter your own figure; the page starts at 0.4.
The result updates as you type, so you can try a figure, see what it does to lifetime gross profit, 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 |
|---|---|
| Average job value | $9,800 |
| Jobs per customer per year | 1.4 |
| Years they stay | 6 |
| Gross margin | 34% |
| Customers they refer | 0.4 |
What comes out
| Result | Value |
|---|---|
| Lifetime gross profit main result | $27,989 |
| Lifetime revenue | $82,320 |
| Including referred customers | $39,184 |
| Gross profit per year | $4,665 |
One customer is worth $27,989 of gross profit over 6 years, or $39,184 once the people they refer are counted. That is what you can afford to spend winning one.
How sensitive the answer is
Holding everything else steady and changing only average job value, this is what happens to lifetime gross profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average job value ($) | Lifetime gross profit |
|---|---|
| $4,900 | $13,994 |
| $7,350 | $20,992 |
| $9,800 example above | $27,989 |
| $14,700 | $41,983 |
| $19,600 | $55,978 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Average job value ($)
- A money amount, starting at $9,800.
- Jobs per customer per year
- A number, between 0 and 60, starting at 1.4.
- Years they stay
- A number, between 0 and 60, starting at 6.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 34%.
- Customers they refer
- A number, between 0 and 20, starting at 0.4.
What the results tell you
| Result | What it is |
|---|---|
| Lifetime gross profit | The headline result. A money figure. |
| Lifetime revenue | A money figure. |
| Including referred customers | A money figure. |
| Gross profit per year | A money figure. |
What this cannot see
Material quantities assume a clean rectangular plane and the waste factor you enter. Valleys, hips, dormers, penetrations and a steep pitch all raise real waste, and a tear-off frequently uncovers decking that was not in the quote.
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.