plumbing, heating, electrical and other trades

How do I add monthly recurring revenue to a trade business that only ever bills by the job?

Short answer

Sell a maintenance or priority-response plan to the customers already in your database, not to new ones. A typical plan runs £15–£35 a month in the UK or $19–$40 in the US, and realistic take-up on a warm past-customer list is 10–20%. A trade with 400 past customers converting 15% at £25 a month is £1,500 a month of recurring revenue from work you have already done and people who already trust you.

Recurring revenue from a list you already have
400 past customers in the database
15% take a plan = 60 customers
60 × £25/month = £1,500/month
Delivery cost: one service visit each per year

£18,000 a year of recurring revenue, from customers acquired years ago and already paid for.

The reason job-billing businesses feel precarious is that January always starts at zero. A plan converts a list of past customers — an asset most trades do not treat as one — into revenue that arrives whether the phone rings or not.

The plan should contain something you already do and can deliver cheaply: an annual service you are qualified for, priority response when something fails, a discount on call-out. The cost to you is one visit a year plus the option value of the priority promise; the price is monthly, so the customer compares it to a streaming subscription rather than to a repair bill.

Attach rates are highest at the moment of a completed job, when the trust is fresh, and lowest in a cold campaign to a list. The mechanical fix is to make the offer part of finishing the work rather than a separate marketing effort later.

The compounding matters more than the monthly figure. A plan customer calls you rather than searching, which removes the acquisition cost from every future job, and plan holders in trades typically produce more billable work per year than non-plan customers rather than less.

Want this worked out for your business specifically?

Everything above is the general case. Describe your business in one sentence — what you sell, roughly how many customers, roughly what you charge — and you will get three specific moves back, each priced per month with the arithmetic written out so you can substitute your own figures.

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People also ask this as

  • How do I get recurring revenue as a plumber or electrician?
  • Are maintenance plans worth it for a trades business?
  • How to sell a service plan to existing customers

Related questions

Figures are typical ranges for small businesses in the UK, US and Canada, given so you can check them against your own books rather than take them on trust. They are arithmetic on stated assumptions, not a forecast, and not financial advice.