Profit & costalso called revenue per hour

Revenue per service hour

Revenue per service hour is what an hour of a technician’s paid time actually earns, counting the driving as well as the work. It is the number that decides whether a route pays, and it is the one most often replaced by a flattering substitute like revenue per stop.

Revenue per stop tells you about pricing. Revenue per service hour tells you about the business.

Why it matters

Two accounts at $90 a visit are not equal if one takes 25 minutes and sits in a cluster while the other takes 25 minutes and sits forty minutes away. Per stop, they are identical. Per hour, one earns roughly twice the other. Every route decision — which accounts to take, where to grow, what to charge for distance — depends on telling them apart.

How you notice it slipping

Revenue grows while margin does not. Rising stop counts are celebrated without anyone checking what happened to the hours. The accounts furthest from the depot are never priced differently from the ones next door.

What to do

It is also the number that makes a distance surcharge arguable rather than awkward. An account whose revenue per service hour sits a third below the rest of the book is not a difficult customer; it is a customer whose geography was never priced.

Calculate it per route and per territory, with drive time included in the denominator. Then sort. The bottom of that list is rarely a pricing failure on its own — it is usually geography that was never priced, and the fix is either a different price or a different place in the week.

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