01The short version
Plumbing and Heating Business is a sound business that is losing money in three places it cannot currently see.
What is working
- Revenue has grown each year, to $2,600,000 in the last twelve months. From your data
- Service and repair work earns a 58% gross margin, the highest of your four lines of work. From your data
- Customers on your membership plan say yes to a replacement 61% of the time. Everyone else says yes 34% of the time. From your data
Where you are losing money
- People who want to hire you and never hear back. 168 calls from new numbers were missed and never returned, and 24 website inquiries were never answered. 238 replacement estimates were given and never marked won or lost. From your data
- Work that was done and not billed. 46 finished jobs worth $21,300 were never invoiced. 412 service invoices left off a part that the technician's notes say was used. 131 members dropped off the plan because a card failed and nobody called. From your data
- Hours paid that produce nothing. Each service truck spends 2.3 hours a day driving. 187 visits went back to fix an earlier job. Your office copies between programs by hand for about 9 hours a week. From your data
The three things to fix, in order
- Answer every inquiry and follow up every replacement estimate. What it is costing you: about $67,000 a year. Our estimate
- Bill everything you do, and keep the members you have. About $47,000 a year, plus $21,300 once. Our estimate
- Make Housecall Pro the one place your records are kept, and plan the day by area. About $35,000 a year. Our estimate
The one number to improve first: the share of replacement estimates that reach a yes or a no. Today it is 68%.
These figures are what each problem is costing you. They are not a promise of what will be recovered.
