Glossary

Average ticket is the mean revenue per job over a period — total revenue ÷ the number of jobs (invoices or tickets) in that period. It tells you what a job is w …

Billable hours are the hours a technician spends on work the customer pays for — the time that appears on an invoice. They stand in contrast to non-billable hou …

A bond plan is a pest-control service agreement that pairs scheduled, recurring treatments with a warranty: the customer pays a periodic fee — usually an upfron …

The break-even point is the level of sales at which total revenue exactly equals total cost, so profit is zero — the threshold a business must clear before any …

A change order is a documented amendment to an existing work order or contract that adds, removes, or modifies the agreed scope of work — and adjusts the price …

Churn rate is the share of customers — or of recurring revenue — that you lose over a period. Customer churn = customers lost during the period ÷ customers at t …

Cost of goods sold (COGS) is the direct cost of delivering the services and products you sold in a period — principally the materials and parts consumed and the …

Customer acquisition cost (CAC) is what it costs, on average, to win one new customer. The formula is CAC = total sales and marketing spend ÷ number of new cust …

Customer lifetime value (CLV, or LTV) is the total profit a customer is expected to generate over the entire relationship, not just on the first job. A common f …

Effective hourly rate is the revenue you actually realize per hour of work, as opposed to the list rate you quote. In the common form it is total revenue ÷ tota …

First-time fix rate (FTFR) is the share of jobs that are fully resolved on the first visit, with no return trip required. It is calculated as jobs resolved on t …

Flat-rate pricing charges a fixed, agreed price for a defined job, set in advance from a price book or menu, regardless of how long the work actually takes or w …

Gross margin is the share of revenue left after subtracting the cost of goods sold (COGS) — the direct materials and direct labor that delivering the work consu …

Labor burden is the full cost of employing a worker on top of their base wage — payroll taxes, workers' compensation, health and other benefits, paid time off, …

Markup and margin both describe the gap between what a job costs and what you charge, but they divide that gap by different bases — which is why the same dollar …

Monthly recurring revenue (MRR) is the predictable revenue a business can count on each month from its active recurring agreements. You calculate it by summing …

Net-30 payment terms mean the full balance of an invoice is due 30 days after the invoice date. It is a form of trade credit: the customer receives the work now …

Overhead recovery is the practice of building each job's share of fixed indirect costs — rent, insurance, office staff, software, vehicle ownership, and the lik …

Recurring billing charges a customer's stored card or bank account automatically on a fixed schedule — usually monthly — so a service operator collects on each …

Route density is how tightly a service operator's stops cluster together — how many jobs a crew completes per route-day relative to the driving between them. De …

Seller's discretionary earnings (SDE) is the profit figure a small owner-operated business is actually valued on. It starts from net profit and adds back the ow …

Technician utilization is the share of a technician's paid time that is actually spent on billable work. It is calculated as billable hours ÷ total available (p …

Time and materials (T&M) is a billing model where the customer pays for the actual labor hours worked, charged at an hourly rate, plus the actual cost of materi …

A trip charge is a fixed fee that covers the cost of sending a technician to a customer's location — the drive, the fuel, and the vehicle and labor time spent g …

A work order is the document that authorizes and describes a specific job: who the customer is, the location, the scope of work to be done, the parts and labor …