How to Benchmark Your Trades Business
Benchmarking a trades business requires sub-industry context that most benchmarking guides ignore. A plumbing company and a landscaping company are both “trades” but their margins, seasonality, and revenue profiles are fundamentally different. Comparing your HVAC company to generic trades averages is like comparing your sedan to “average vehicle statistics” that include motorcycles and semi-trucks. The number might be technically correct and practically useless.
This guide provides benchmarks for your specific trade and a step-by-step process for identifying where your business has the most room to improve.
Step 1: Pull Your Numbers
Six data points from the trailing 12 months. Your accounting software, dispatch records, and a quick calculation will cover all of them.
| Metric | Where to Find It | Notes |
|---|---|---|
| Total revenue | Accounting software | All income sources |
| Net margin | Revenue minus all expenses, divided by revenue | Include owner comp as an expense |
| Revenue per truck | Total revenue / number of service vehicles | Include owner’s truck if in service |
| Average service ticket | Total service revenue / number of service calls | Service only, not installs or projects |
| Estimate close rate | Jobs won / total estimates given | From CRM or dispatch tracking |
| Recurring revenue % | Maintenance agreement + contract revenue / total revenue | Monthly recurring only |
If you don’t track close rate or average ticket, that’s information worth having. Start tracking this month - even rough numbers are better than blind spots.
Step 2: Compare Against Your Trade
Plumbing Benchmarks
| Metric | Struggling | Average | Healthy | Best-in-Class | Your Number |
|---|---|---|---|---|---|
| Revenue | Below $400K | $500K-$800K | $800K-$1.5M | $1.5M-$2.5M | ___ |
| Net Margin | Below 8% | 10-14% | 14-18% | 18-22% | ___ |
| Revenue/Truck | Below $200K | $250K-$300K | $300K-$425K | $425K-$550K | ___ |
| Avg Service Ticket | Below $250 | $300-$500 | $500-$800 | $800-$1,200 | ___ |
| Close Rate | Below 35% | 40-50% | 50-60% | 60-70% | ___ |
| Recurring Rev % | Below 10% | 15-20% | 20-30% | 30-45% | ___ |
HVAC Benchmarks
| Metric | Struggling | Average | Healthy | Best-in-Class | Your Number |
|---|---|---|---|---|---|
| Revenue | Below $400K | $500K-$1M | $1M-$2M | $2M-$3M | ___ |
| Net Margin | Below 6% | 8-12% | 12-15% | 15-20% | ___ |
| Revenue/Truck | Below $200K | $250K-$350K | $350K-$450K | $450K-$600K | ___ |
| Avg Service Ticket | Below $200 | $250-$450 | $450-$800 | $800-$1,200 | ___ |
| Close Rate | Below 35% | 40-50% | 50-60% | 60-70% | ___ |
| Maintenance Agreement % | Below 10% | 15-20% | 20-30% | 25-35% | ___ |
Electrical Benchmarks
| Metric | Struggling | Average | Healthy | Best-in-Class | Your Number |
|---|---|---|---|---|---|
| Revenue | Below $300K | $400K-$700K | $700K-$1.2M | $1.2M-$2M | ___ |
| Net Margin | Below 8% | 10-14% | 14-18% | 18-22% | ___ |
| Revenue/Truck | Below $180K | $220K-$300K | $300K-$400K | $400K-$500K | ___ |
| Avg Project Value | Below $400 | $500-$2,000 | $1,000-$3,500 | $2,000-$5,000+ | ___ |
| Close Rate | Below 35% | 40-50% | 50-60% | 60-70% | ___ |
| Recurring Rev % | Below 8% | 12-18% | 18-28% | 28-40% | ___ |
Landscaping Benchmarks
| Metric | Struggling | Average | Healthy | Best-in-Class | Your Number |
|---|---|---|---|---|---|
| Revenue | Below $200K | $300K-$600K | $600K-$1.2M | $1.2M-$2M | ___ |
| Net Margin | Below 6% | 8-12% | 12-15% | 15-20% | ___ |
| Revenue/Crew | Below $120K | $150K-$250K | $250K-$350K | $350K-$500K | ___ |
| Maintenance Contract % | Below 20% | 25-35% | 35-45% | 45-55% | ___ |
| Close Rate | Below 35% | 40-50% | 50-60% | 60-70% | ___ |
Step 3: Read the Gaps
The gap pattern reveals the root cause:
Low revenue per truck, healthy close rate: Dispatch or average ticket problem. The trucks are converting work but not enough of it - either they’re spending too much time driving between jobs (dispatch) or the jobs are too small (average ticket). Optimizing dispatch routing and training on option selling address both.
Healthy revenue per truck, low net margin: Cost problem. Materials, labor, or overhead are eating the revenue. The most common culprits: techs not tracked for material usage, callbacks above 3% (pure margin-negative), or the owner paying themselves too little while absorbing management overhead as “free labor.”
Low close rate, healthy everything else: Sales process problem. Below 40% close rate on estimates is almost always a presentation issue. Train on option selling (good/better/best) and watch close rates jump 15-25% within 90 days.
Low recurring revenue, seasonal cash flow stress: Structure problem. The business is rebuilding its revenue from scratch every month. Maintenance agreements - even small ones at $25-$50/month - create the recurring base that smooths seasonality.
Revenue per truck declining as trucks are added: Scaling too fast. Each new truck needs to generate $150K-$200K just to cover the fully loaded tech cost. If existing trucks haven’t reached $350K, adding another one dilutes the whole operation.
Step 4: Identify Your Single Highest-Leverage Move
For most trades businesses in this band:
- If average ticket is below trade benchmark: Raise prices and implement option selling. Highest-margin fix available. See the Pricing Power Calculator.
- If revenue per truck is below $300K: Optimize dispatch and utilization before adding trucks.
- If close rate is below 45%: Train on presentation. Option selling, not discounting.
- If callbacks are above 3%: Implement quality control checklists. Pure margin recovery.
- If recurring revenue is below 15%: Start a maintenance agreement program. Even 50 agreements at $30/month changes cash flow behavior.
Run the full diagnostic with the Business Assessment. The full trades benchmarks analysis covers the growth wall, the solo-to-crew transition, and the systems that separate the 30-40% of trades businesses that break through from the 60-70% that stall.