How to calculate pool service profit margin
Add recurring service and repair revenue, subtract all operating costs, then divide the remaining profit by total revenue. Include owner labor and route vehicle cost so unpaid time and driving do not appear as profit.
Separate revenue sources
Recurring maintenance and repair work can have different economics. Track both, then review them separately in the business records.
Use complete labor cost
Include wages or an owner-labor allowance plus applicable employer costs when relevant to your business.
Watch contribution per pool
The average recurring price minus variable chemical and labor cost determines how much each customer contributes to fixed overhead.
Frequently asked questions
How is profit margin calculated?
Subtract operating costs from revenue, divide profit by revenue, then multiply by 100.
Which costs belong in the model?
Include chemicals, labor, vehicle cost, insurance, software, storage, phone, payment fees and other operating costs without double-counting.
What is the break-even pool count?
It is the modeled number of average recurring customers needed for their contribution to cover fixed monthly costs.