Grounds ToolkitBusiness Profitability
What's a Season or Year of a Recurring Account Worth?
Enter price per visit, visit frequency, and crew cost per visit. This shows annual revenue, cost, gross profit, and margin for the account.
How this is calculated
Annual contract value is price per visit times visits per year. Cost per visit uses crew-hours at the loaded labor rate (see Loaded Labor Rate), multiplied by visits per year for annual cost. Annual gross profit is value minus cost, annual margin is that profit divided by value.
Worked example
A biweekly account at $80 a visit runs 26 visits a year, worth $2,080. A 2-person crew for 1 hour per visit at a $22 wage (28.60 loaded) costs $57.20 per visit, $1,487.20 a year, leaving $592.80 in gross profit at a 28.5% margin.
Guide: The Pricing for Recurring Work Guide, why a small recurring visit adds up to real money over a season.
Frequently asked questions
How do I count visits per year for a seasonal account?
Multiply your visit frequency (weekly, biweekly, monthly) by the number of weeks or months of the season, then enter that total.
Does this account for price changes mid-contract?
No, it assumes one price per visit for the full period entered. If a price change is planned partway through, run this once per pricing period and add the results.
Why does the margin here differ from Gross Margin and Markup's default?
This shows the margin actually produced by the price and cost entered, not a target. Compare it against your target margin to see if this account is pulling its weight.
Is this the same as customer lifetime value?
Not quite, lifetime value typically spans multiple years and accounts for churn. This is a single season or year, a simpler and more concrete number to work from.