Module 1: Trades Business Economics
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Revenue Structure

Lesson 1 of 5  ·  ~8 min read

Service calls: Diagnosis + repair (40-50% of revenue). Parts + materials: Installed goods (20-30% of revenue). Maintenance contracts: Recurring revenue (20-40% of revenue). Equipment sales: New furnace/AC installation (seasonal spikes). Profitability: 10-20% net profit typical (varies by operation). Scalability: Every technician adds $200-400K annual revenue potential.

Service Call Pricing

Lesson 2 of 5  ·  ~8 min read

Diagnostic fee: $85-150 (varies by region + complexity). Service calls: $150-350 per visit (labor + travel). Materials markup: Cost + 30-50% (lower than service markup). Pricing model: Flat-rate (predictable), hourly (flexible), or combo. Seasonal: Winter heating, summer cooling = peak pricing. Psychology: Flat-rate pricing = higher perceived value.

Key Profitability Drivers

Lesson 3 of 5  ·  ~8 min read

Labor utilization: % of time technicians billable. Target: 60-70% billable (realistic with drive time). Parts margin: 40-50% markup on materials. Recurring contracts: Monthly/yearly maintenance (high margin, predictable). Efficiency: More jobs per technician = higher revenue. Vehicle costs: Fuel, maintenance, depreciation (~15-20% of labor cost).

Maintenance Contracts and Recurring Revenue

Lesson 4 of 5  ·  ~8 min read

Model: $15-30/month per residential customer. Services: Annual tune-up + priority service + discount on repairs. Sticky: Customers prepay (upfront cash flow). Margins: 80%+ profit margin once signed. Growth: Recurring revenue smooths cash flow, increases value. Stickiness: 85-90% renewal rate typical.

Key Metrics to Track

Lesson 5 of 5  ·  ~8 min read

Revenue per technician: $200-400K annually. Dispatch efficiency: # of jobs per technician per day. Response time: Hours from call to arrival (affects closing rate). Closing rate: % of diagnostics to repair conversions. Customer lifetime value: Total revenue from one customer. Repeat rate: % of customers calling back within 12 months.

Module 2: Job Management and Dispatch →