Plumbing Business KPIs: The Numbers to Track and Their Targets

The plumbing business KPIs that actually predict profit are a short list, not a forty-widget dashboard: weekly booked revenue, average ticket, close rate, gross margin, labor efficiency, cash versus payroll, customer acquisition cost, and callback rate. Revenue alone hides trouble. These numbers show whether the work you booked will pay the payroll you owe, while there is still time to fix it. Below is each metric, how to calculate it, and the healthy 2026 target range most guides skip.

The plumbing KPI scorecard with target ranges

This is the reference most KPI articles leave incomplete: the actual healthy target for each number, not just its name. The ranges below are compiled from Profitability Partners, ACCA service-contractor benchmarks, and home-service operator data for 2026. Treat them as bands, not pass-fail lines. A single job type, a big install week, or a slow month will move any of these, so read the trend over four to twelve weeks rather than one reading.

Field-service platforms calculate most of these automatically once your price book and time tracking are set up. If yours does not, our comparison of field-service software that tracks these numbers shows which tools surface close rate, average ticket, and margin per tech out of the box.

The three numbers to check every Monday

You do not need all ten daily. Three numbers, read every Monday morning, catch most trouble a week or two before it hits the bank: booked revenue for the week, average ticket, and cash on hand against payroll. Together they answer one question: will the work on the calendar cover what you owe? The other seven are monthly reviews.

Weekly booked revenue

Booked revenue is the total approved job value already scheduled for the current week. Add up the approved tickets on the calendar and compare that figure to your weekly breakeven, the revenue that covers payroll, trucks, and overhead. If Monday’s booked number sits below breakeven, you have days, not weeks, to fill the schedule with membership calls, deferred work, or marketing spend.

Aim to open the week at 1.2 to 1.5 times breakeven. That cushion absorbs the cancellations and no-shows that always arrive by Wednesday. A number that consistently opens below breakeven is a demand problem, and the fix lives in lead flow and booking rate, not in working the crew harder.

Average ticket

Average ticket is total revenue divided by completed jobs, and it is the quiet driver of profit. Raising it a few percent flows almost straight to the bottom line because your truck, dispatch, and drive time cost the same whether the ticket is $300 or $500. A 3 to 5 percent lift in average ticket often adds one to two full margin points.

Watch it by technician, not just shopwide. When two techs average $450 and one averages $280 on similar calls, the gap is options presentation and pricing confidence, not skill. A standardized flat-rate price book closes most of that spread, and moving off hourly billing typically lifts the average ticket 15 to 30 percent on its own.

Cash on hand versus payroll

This is the number that ends businesses that look busy on paper. Compare the cash in the operating account to your next payroll run, then to the two after it. A profitable shop can still miss payroll when receivables lag and material bills land first. The target is enough cash to cover at least two full payroll cycles, and ideally eight or more weeks of operating expenses in reserve.

If cash routinely runs tight while the calendar stays full, the leak is usually collections. Days sales outstanding above 45 to 55 days means you are financing your customers. Top operators collect in under 30 days by taking payment on completion rather than mailing invoices.

Sales KPIs: close rate, booking rate, average ticket

Sales KPIs measure how well demand turns into approved work. The three that matter are booking rate at the phone, close rate in the field, and average ticket per job. A weakness in any one caps revenue no matter how many leads you buy, so track all three before spending more on marketing.

Booking rate is the share of opportunity calls your office turns into a scheduled visit. The industry average sits near 42 percent, which means most shops lose more than half their inbound demand at the phone. Top operators book 70 percent or more by answering fast, quoting a trip fee rather than a price, and avoiding voicemail. A missed call rate under 10 percent is the supporting target here.

Close rate is jobs sold divided by qualified opportunities presented. Repairs close at 60 to 70 percent for strong shops; replacements at 35 to 45 percent, with mid-tier shops often stuck in the low 20s. Presenting three options on a replacement and two on a major repair reliably lifts close rate, because it lets the homeowner choose good-better-best instead of yes-or-no.

Profit KPIs: gross margin, net margin, labor efficiency

Profit KPIs show whether the revenue you book actually keeps money. Gross margin and net margin measure pricing and overhead; labor efficiency measures whether your most expensive resource, technician time, is earning. Revenue can climb while all three fall, which is how a $1.5M shop nets $60K instead of $200K.

Gross margin is revenue minus direct labor and materials, divided by revenue. Service and repair work should hold 50 to 65 percent, with 62 percent and up considered strong; drain and sewer work often reaches 65 to 75 percent when priced correctly. A gross margin under 45 percent almost always traces to underpricing the price book or eating material waste, not to a soft market.

Net profit margin is what remains after overhead, marketing, and owner pay. Twelve to 20 percent is a healthy net for a well-run shop, and 20 percent or higher is excellent; many companies drift at 5 to 12 percent. Labor efficiency, the share of paid technician hours that are billable, should run 65 to 75 percent, which usually looks like four to six completed jobs per tech per day. When utilization sags, the fix is dispatch and drive-time routing before it is hiring.

Marketing and quality KPIs: CAC and callback rate

Two more numbers protect the ones above: customer acquisition cost tells you whether growth is affordable, and callback rate tells you whether the work you sold was actually done. Both quietly erase margin when ignored, because one inflates spend and the other burns free labor.

Customer acquisition cost is total marketing and sales spend divided by new customers won, typically $200 to $800 for home-service trades in 2026, with cost per lead near $90. The absolute figure matters less than the ratio: lifetime value should run at least three times CAC, and a ratio under two-to-one means marketing is subsidizing the business. Referral and membership customers usually cost a fraction of paid search, which is why attach rate on memberships is worth tracking alongside CAC.

Callback rate is return trips to fix the same issue at no charge, divided by completed jobs. Keep it under 3 percent. A callback earns zero revenue while consuming a truck, a tech, and a slot that could have held a paying job, so a 5 percent callback rate is a direct tax on margin. Rising callbacks point to rushed work, training gaps, or cheap parts, and the cause is worth finding before it shows up in reviews.

How often to review each number

Matching review frequency to each KPI keeps the scorecard useful instead of overwhelming. Operational numbers shift daily and need frequent eyes; financial numbers move slower and reward a monthly close. Run this cadence and you see problems early without living in a dashboard.

1. Daily: booking rate and missed calls, so a bad phone day gets fixed the next morning.
2. Weekly (every Monday): booked revenue, average ticket, and cash versus payroll.
3. Monthly: gross margin, net margin, labor efficiency, close rate, and callback rate at the books close.
4. Quarterly: customer acquisition cost and lifetime-value ratio, which need a full quarter of data to read cleanly.

The point of the scorecard is early warning, not paperwork. When a number drifts outside its target band for two readings in a row, that is the signal to act. Owners who want the operating moves behind these numbers, from dispatch to memberships to pricing, can read our playbook on how to grow a plumbing business, and shops still billing by the hour should start with switching a crew to flat-rate pricing, the single change that moves average ticket and gross margin at once.

Frequently asked questions

What KPIs should a plumbing business track?

Track ten numbers that predict profit: weekly booked revenue, average ticket, repair close rate, booking rate, gross margin, net profit margin, labor efficiency, cash versus payroll, customer acquisition cost, and callback rate. Most owners drown in dashboards. If you check booked revenue, average ticket, and cash every Monday, and the rest monthly, you catch problems while they are still fixable.

What is a good gross margin for a plumbing company?

A healthy plumbing gross margin runs 50 to 65 percent on service and repair work, with 62 percent or higher considered strong, per Profitability Partners and ACCA benchmark data. Drain and sewer work often reaches 65 to 75 percent. Gross margin is revenue minus direct labor and materials, divided by revenue. Below 45 percent usually signals underpricing or material waste rather than a slow month.

What is a healthy average ticket for a plumber?

Blended residential service tickets commonly land near $350 to $600 in 2026, though repair-heavy shops report averages closer to $445 and replacement work pushes far higher. The number matters less than the trend: a healthy average ticket climbs 5 percent or more year over year. Flat-rate pricing typically lifts the average ticket 15 to 30 percent over hourly billing.

What is a good close rate for plumbers?

Top plumbing operators close 60 to 70 percent of repair opportunities and 35 to 45 percent of replacement quotes, per home-service benchmark data. Mid-tier shops often sit in the low 20s on replacements. Close rate is jobs sold divided by qualified opportunities presented. A low close rate with strong lead flow points to pricing, options presentation, or technician sales training, not bad luck.

How much should a plumbing company spend to acquire a customer?

Customer acquisition cost for home-service trades typically runs $200 to $800 per new customer, with cost per lead near $90 in 2026. The number to watch is the ratio: lifetime value should be at least three times CAC, and under two-to-one means marketing is subsidizing the business. Referral and membership customers usually cost a fraction of paid-search leads.

What is a good callback rate for a plumbing business?

Keep callbacks under 3 percent of completed jobs. A callback is a return trip to fix the same issue at no charge, calculated as callbacks divided by completed jobs. Rates of 3 to 4 percent are tolerable, but anything higher usually points to rushed work, training gaps, or parts quality. Callbacks quietly erase margin because the second visit earns nothing.

Last reviewed: August 2026.