Home Services Model

Customer acquisition and retention form the demand engine. A starting customer base is rolled forward each year by adding gross new customers and subtracting churn, with retention expressed through a repeat rate.

• Gross adds grow at a modest annual rate, so the installed base compounds rather than being reset by branch openings. Average customers then combine with a service frequency, expressed as jobs per customer per year, to yield total jobs.
• Because demand is built from the customer book, the model is suited to platforms that grow by acquiring customers and flexing a shared crew across several service lines rather than by rolling out branches. The repeat rate also feeds customer lifetime value and the relationship between lifetime value and acquisition cost, showing whether lead-generation spending is translating into durable customer economics.

Rather than treating headcount as a direct input, the model calculates the technicians needed to deliver forecast job volume. Total jobs are divided by jobs per technician per year, which is itself built from jobs per technician per day, working days, and a utilisation ramp.

• That ramp starts below the practical ceiling and rises over the forecast, so each technician can complete more jobs as route density improves. Because technician labour scales with derived headcount rather than job volume directly, labour cost grows more slowly than the work being performed.
• A matching van fleet is sized off the same technician requirement, and fleet-expansion capital expenditure is charged when net new technicians are added. This keeps capacity and capital investment aligned with the demand outlook.

Revenue is split across four service lines: recurring cleaning contracts, handyman and repair, appliance repair, and specialty trades. Each line carries a mix share, a price index relative to the blended average ticket, and a net margin, so the blended outcome reflects both the revenue weight and the cost character of each stream.

• Recurring cleaning is treated as its own line because subscription cleaning has a distinct retention and margin profile from one-off calls. A per-job booking or trip fee layers ancillary revenue on top.
• Materials and parts costs are netted into gross profit per line, with cleaning running wide and appliance repair carrying heavier parts content. The dashboard reports recurring revenue as a share of the total, allowing the mix to be read alongside margin.

The profit and loss statement runs from revenue through per-line materials and parts cost, technician labour, fleet cost, customer-acquisition-driven marketing, dispatch and scheduling overhead, and corporate G&A to EBITDA, EBIT, tax, and net income.

• Marketing scales with new customers rather than revenue, so as the retained base compounds while acquisition grows more slowly, marketing intensity falls and margin expands even without price increases.
• The free cash flow bridge starts from net operating profit after tax, adds back depreciation, deducts maintenance and fleet-expansion capital expenditure, and charges working capital.
• Discounted cash flows produce enterprise value, equity value, value per share, and an implied EV/EBITDA multiple, giving a consistent link from operating drivers to shareholder value.