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Roofing

Roofing Service Agreement Revenue Calculator

Project recurring revenue from roof maintenance agreements and the work inspections generate.

Your numbers

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

Result

Recurring revenue $0
Profit on the agreements $0
Profit on pull-through work $11,628
Total gross profit $11,628
Members still there next year 137
$0 of recurring revenue, earning $0 on the agreements themselves and $11,628 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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What moves the number

  • Properties under agreement and the fee per property.
  • Repairs found and approved during inspections.
  • Renewal, which depends on the inspections actually happening.

Where this one goes wrong

Selling agreements faster than inspections can be delivered. The inspection is the entire value, and an agreement whose visits do not happen is a refund conversation rather than recurring revenue.

Questions

About this calculator

What makes a roofing agreement renew?

Inspections delivered with a report the customer can see. Without the report there is nothing to show for the fee and it becomes the first line cut.

How should agreements be priced?

From the cost of the inspection including access, travel and reporting time, plus margin. Access on commercial roofs can be a significant part of it.

Is the repair work the real value?

Usually yes, both for you and for the customer. Catching a failing detail before it leaks is what the agreement is actually for.

How useful was this calculator?

Not rated yet. Yours would be the first.

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

  1. Agreements in force. Enter your own figure; the page starts at 180.
  2. Annual fee ($). Enter your own figure; the page starts at $0.
  3. Cost to deliver one ($). Enter your own figure; the page starts at $0.
  4. Renewal rate (%). Enter your own figure; the page starts at 76%.
  5. Extra work per member per year ($). Repairs and replacements members buy because you are already there.
  6. Margin on that work (%). Enter your own figure; the page starts at 34%.

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

InputValue
Agreements in force180
Annual fee$0
Cost to deliver one$0
Renewal rate76%
Extra work per member per year$190
Margin on that work34%

What comes out

ResultValue
Recurring revenue main result$0
Profit on the agreements$0
Profit on pull-through work$11,628
Total gross profit$11,628
Members still there next year137

$0 of recurring revenue, earning $0 on the agreements themselves and $11,628 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 34%.

What the results tell you

ResultWhat it is
Recurring revenueThe headline result. A money figure.
Profit on the agreementsA money figure.
Profit on pull-through workA money figure.
Total gross profitA money figure.
Members still there next yearA number.

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.