Key Performance Indicators for a House Leveling Business

Cost Structure Reality Check

• The stated 260% COGS projection for 2026 needs immediate review.
• A 660% contribution margin figure isn't mathematically possible here.
• Focus on keeping direct costs below 80% to secure margin.
• If you hit $222k revenue, you are break-even, defintely not hitting profit targets yet.

Current Financial Standing

• Your current ARPJ is high, sitting near $3,818 per job.
• The initial CAC of $450 results in a strong starting LTV:CAC ratio.
• Your $45,000 annual marketing budget funds this current acquisition rate.
• This high margin allows you time to optimize marketing spend slowly.

Actionable Shift

• Target increasing Underpinning volume above 40%.
• Slab Jacking holds a solid 35% share currently.
• Focus sales efforts on deep structural assessments.
• Push the lifetime transferable warranty on structural work.

Crew Efficiency Benchmarks

• Measure the Billable Utilization Rate for all field crews monthly.
• Underpinning jobs require an average of 32 hours of crew time.
• Crack Repair jobs typically take only 6 hours per crew.
• Large gaps between expected and actual hours signal process failure.

Disadvantages

• Masks profitability issues if one huge job skews the average.
• Hides the need to raise prices on low-volume repair types.
• Requires accurate tracking of every single job's final invoice.

Industry Benchmarks

For specialized structural trades like foundation repair, ARPJ varies based on regional soil conditions and the complexity of the settlement. While there isn't a universal standard, consistently hitting an ARPJ above $3,500 suggests you are effectively capturing the value of complex underpinning work. You need to compare this number against your direct costs every month to see if the price is right.

Disadvantages

• It hides problems with overhead costs, like excessive administrative salaries.
• It can be misleading if you don't accurately track all direct labor hours.
• A high percentage doesn't mean you have enough jobs to cover fixed costs.

Industry Benchmarks

For specialized trade services like foundation repair, you need a strong margin to absorb the high cost of specialized equipment and insurance. While some construction trades hover around 30% to 40%, your target is set high at 660% or better, which suggests a focus on premium pricing or extremely low material costs. You must review this monthly to ensure you are hitting that aggressive benchmark.

Disadvantages

• It ignores the total value a customer brings over time.
• It can be misleading if marketing spend spikes one month.
• It often leaves out internal sales team costs, skewing the true cost.

Industry Benchmarks

For specialized home services, CAC varies based on how dense your service area is. Given your high Average Revenue Per Job (ARPJ) of about $\mathbf{$3,818}$, a target CAC of $\mathbf{$450}$ is a good starting point. You should aim for CAC to represent less than $\mathbf{15\%}$ of that initial job value to ensure strong immediate returns.

Disadvantages

• It relies heavily on accurate Gross Margin Percentage (GM%).
• A high ratio can mask slow cash conversion cycles.
• It ignores the time it takes to earn back CAC (payback period).

Industry Benchmarks

For most subscription businesses, 3:1 is the baseline for healthy, scalable growth. For high-ticket, project-based services like foundation repair, where the ARPJ is substantial, you should aim higher, perhaps 4:1 or 5:1. If your ratio dips below 2:1, you are likely losing money on every new customer you onboard.

Disadvantages

• May pressure crews to rush jobs, risking quality or warranty claims.
• Ignores necessary non-billable time like complex site prep or travel.
• Focusing only on hours can mask low-value work if ARPJ is ignored.

Industry Benchmarks

For specialized trade services like foundation repair, a utilization rate above 85% is the standard goal. Hitting this means your scheduling is tight and your crew capacity is nearly maxed out on revenue-generating work. Anything below 75% signals serious scheduling problems or too much overhead labor scheduled.