What Are The Top 5 KPIs For Shower Door Installation Service Business?
KPI Metrics for Shower Door Installation Service
The Shower Door Installation Service model aims for breakeven in 10 months (October 2026) and requires tracking 7 core Key Performance Indicators (KPIs) to manage profitability and capacity Your total variable costs start at 290% in 2026, meaning a strong 710% contribution margin per job We detail the metrics, from Customer Acquisition Cost (CAC) starting at $250, to managing the weighted average billable hours (92 hours in 2026), ensuring labor efficiency drives the projected $27 million revenue by 2030
7 KPIs to Track for Shower Door Installation Service
#
KPI Name
Metric Type
Target / Benchmark
Review Frequency
1
Average Revenue Per Job (ARPJ)
Revenue/Sale Value
$1,095+ in 2026
reviewed monthly
2
Contribution Margin Percentage (CM%)
Profitability
710% or higher
reviewed monthly
3
Customer Acquisition Cost (CAC)
Marketing Efficiency
$250 in 2026, dropping to $180 by 2030
reviewed quarterly
4
Weighted Average Billable Hours (WABH)
Job Complexity/Pricing
92 hours in 2026
reviewed monthly
5
Gross Margin (GM)
Material Cost Control
790% or higher
reviewed weekly
6
Breakeven Jobs Per Month
Operational Scale
~36 jobs/month in 2026
reviewed monthly
7
Labor Cost Percentage
Labor Efficiency
reduction as revenue scales
reviewed monthly
How do I calculate the true profitability of different shower door types?
You calculate true profitability by comparing the Gross Margin Percentage for Frameless versus Framed jobs, isolating material and direct labor costs from your flat project fee. This shows which door type actually drives better unit economics, not just higher revenue; for a deeper dive into startup costs for this specific trade, review How Much To Start Shower Door Installation Service?
Margin Components
Revenue is the flat installation fee charged per job.
COGS includes glass, custom hardware, and consumables like silicone.
Labor must cover measurement time and actual installation hours.
Frameless jobs defintely carry higher material costs per unit.
Identifying Profit Levers
If Framed margin is 55% and Frameless is 35%, focus sales there.
Analyze labor time; complexity eats margin fast on custom cuts.
Negotiate volume discounts on standard hardware components.
Use digital measurements to cut rework costs by 10%.
Are we spending too much to acquire a new installation customer?
You must rigorously track your Customer Acquisition Cost (CAC) against your Average Revenue Per Job (ARPJ) to confirm marketing spend is profitable for the Shower Door Installation Service. The goal is to drive the CAC down from the projected $250 in 2026 to $180 by 2030.
Check CAC vs. Revenue
Calculate the ratio: ARPJ divided by CAC must be at least 3:1 for healthy growth.
If your average job price is $2,500, a $250 CAC is acceptable, but barely covers overhead.
You must know your gross margin per job to set a hard CAC ceiling.
If onboarding takes 14+ days, churn risk rises.
Drive Down Acquisition Cost
Target a 28% reduction in CAC from 2026 levels to hit the 2030 goal.
Optimize digital ad spend to reduce cost per lead; defintely review search terms.
Focus on securing repeat business from contractors for volume.
How efficient is our installation team compared to billing targets?
The efficiency of your Shower Door Installation Service team hinges on the Technician Utilization Rate, which currently shows 60% billable time against a 75% target, indicating significant non-billable drag.
Measuring Billable Capacity
Total available hours are 1,600 per month (5 techs 40 hrs/wk 4 wks).
Actual billable hours logged were 960 hours last month.
Utilization Rate is Actual / Available: 60%.
This metric shows time spent installing doors versus total paid time.
Fixing Idle Time Bottlenecks
Non-billable time hides in travel, quoting, or paperwork delays.
If tech onboarding takes 14+ days, capacity suffers defintely.
Focus on scheduling density to cut down on drive time between jobsites.
When will the business stop losing money and start generating positive cash flow?
The Shower Door Installation Service expects to hit its breakeven date in October 2026, requiring careful management of working capital until then, which is why understanding the full scope, like in How To Write A Business Plan For Shower Door Installation Service?, is crucial. The payback period is projected at 36 months.
Breakeven Timeline
Target breakeven month is October 2026.
You'll defintely need to manage operating burn rate until then.
Focus growth efforts on increasing job density per service area.
This date assumes current cost structure holds steady.
Capital Needs & Payback
The payback period clocks in at 36 months.
Secure minimum cash of $683,000 by June 2027.
This capital covers the operating deficit until profitability.
If lead quality drops, customer acquisition cost (CAC) will spike.
Key Takeaways
Achieving the October 2026 breakeven milestone depends critically on maintaining a robust Contribution Margin Percentage to cover the $27,600 monthly fixed overhead.
Operational efficiency must be monitored weekly via Weighted Average Billable Hours (WABH) to ensure labor utilization aligns with pricing assumptions for complex jobs.
The business must actively manage Customer Acquisition Cost (CAC), targeting a reduction from $250 in 2026 down to $180 by 2030 to improve long-term marketing ROI.
True job profitability is determined by analyzing the Gross Margin Percentage across different product lines, such as Frameless versus Framed enclosures, rather than just total revenue.
KPI 1
: Average Revenue Per Job (ARPJ)
Definition
Average Revenue Per Job (ARPJ) tells you the typical dollar amount you bring in for every installation completed. It's the core measure of your average sale size, showing if your pricing strategy captures enough value. For this glass installation business, hitting a target of $1,095+ by 2026 is the financial goal for job pricing.
Advantages
Shows if pricing strategy captures enough value.
Highlights success of upselling premium materials.
Directly impacts total monthly revenue potential.
Disadvantages
Masks high variance between simple and complex jobs.
Can encourage pushing low-margin, high-value jobs.
Doesn't account for job profitability (Gross Margin).
Industry Benchmarks
For specialized trade services like custom glass installation, ARPJ benchmarks vary based on geography and material costs. A standard, basic enclosure might pull in $800, but premium, frameless work often pushes past $1,500. Tracking this confirms if your premium positioning is reflected in what customers actually pay for the end product.
How To Improve
Standardize pricing tiers for common door configurations.
Train sales staff to quote the premium hardware package first.
Review job complexity data monthly to adjust base pricing floors.
How To Calculate
You find ARPJ by taking your total revenue for a period and dividing it by the number of jobs you finished in that same period. This gives you the average sale value. You must review this metric monthly to stay on track for the 2026 goal.
ARPJ = Total Revenue / Jobs Completed
Example of Calculation
Say last month your business generated $50,000 in total revenue from 40 completed shower door installations. Here's the quick math to see your current performance against the target.
ARPJ = $50,000 / 40 Jobs = $1,250 Per Job
Since $1,250 is above the $1,095+ target, you're currently priced well for the work you're doing.
Tips and Trics
Segment ARPJ by customer type: contractor vs. homeowner.
Tie ARPJ reviews directly to Weighted Average Billable Hours (WABH).
If ARPJ drops, check if variable costs are creeping up fast.
Ensure all quotes are finalized before the job starts. That's defintely important.
KPI 2
: Contribution Margin Percentage (CM%)
Definition
Contribution Margin Percentage (CM%) shows how much revenue is left after covering the direct, variable costs tied to delivering a specific service. This metric tells you if your core offering is profitable before factoring in overhead like office rent or fixed salaries. We target 71.0% or higher, reviewed monthly, to ensure every installation job contributes significantly to covering fixed expenses.
Advantages
It directly measures unit profitability, ignoring fixed overhead costs.
It helps you price jobs correctly, ensuring you cover variable installation labor.
It's essential for calculating operational scale, like the ~36 jobs/month breakeven target.
Disadvantages
It ignores fixed costs entirely, so a high CM% doesn't guarantee net profit.
It can be confused with Gross Margin (GM), which is 79.0% for this business.
It relies heavily on accurately classifying labor as variable versus fixed overhead.
Industry Benchmarks
For specialized, high-touch installation services, a CM% in the 65% to 75% range is generally healthy. If you are consistently below 60%, it means your variable costs-especially direct installer wages or travel time-are eating too much of the revenue before fixed costs are even considered. This metric must be higher than your Gross Margin percentage minus your variable labor percentage.
How To Improve
Increase Average Revenue Per Job (ARPJ) above the $1,095 target.
Reduce variable installation labor time by improving technician training and process flow.
Systematically cut variable costs by optimizing material handling and reducing waste on site.
How To Calculate
To find your CM%, subtract all costs directly tied to performing the installation-like direct wages, travel, and consumables-from the total revenue generated by that job. Then, divide that difference by the total revenue.
CM% = (Revenue - Variable Costs) / Revenue
Example of Calculation
Say a typical shower door installation generates $1,095 in revenue. If the direct variable costs for that job-including installer wages for the day and specific consumables-total $320, your contribution margin is $775. Here's the quick math to hit the target:
CM% = ($1,095 - $320) / $1,095 = 70.8%
This result is just shy of the 71.0% goal, meaning you need to find about $3.29 in savings per job to hit the target.
Tips and Trics
Track variable labor hours per job to ensure accuracy in cost allocation.
If CM% dips, immediately review if your Customer Acquisition Cost (CAC) is too high for that job segment.
Use CM% to pressure test your Gross Margin (GM) targets; they must move in tandem.
If onboarding takes 14+ days, churn risk rises, which artificially lowers your effective CM% over time.
KPI 3
: Customer Acquisition Cost (CAC)
Definition
Customer Acquisition Cost (CAC) shows exactly how much money you spend on marketing to land one new customer needing a shower door installation. It's the core measure of marketing efficiency. If you spend $5,000 this month and get 20 new installation jobs, your CAC is $250.
Advantages
Shows direct marketing ROI, linking spend to new revenue.
Helps allocate budget to the most efficient acquisition channels.
Directly impacts how quickly you pay back the initial cost of a job.
Disadvantages
Ignores the total value a customer brings over their lifetime (LTV).
Can be skewed by one-off, large brand awareness campaigns.
Doesn't account for non-marketing sales costs, like sales team salaries.
Industry Benchmarks
For specialized, high-touch services like premium glass installation, CAC is often higher than for simple e-commerce. While some industries target under $100, high-value home services frequently see initial CAC between $200 and $500. Hitting your $250 target for 2026 is realistic if you leverage contractor partnerships effectively.
How To Improve
Boost referral programs for contractors and designers to lower cost.
Increase Average Revenue Per Job (ARPJ) so a higher CAC is affordable.
Optimize digital measurement precision to stop wasting ad spend dollars.
How To Calculate
To calculate CAC, you divide all your marketing and sales expenses over a period by the number of new customers you acquired in that same period. This gives you the cost per new installation project.
CAC = Total Marketing & Sales Spend / New Customers Acquired
Example of Calculation
Say you are planning for 2026 and want to hit your target. If you budgeted $12,500 for all marketing efforts in the first quarter and that spend resulted in exactly 50 new shower door installation jobs, your CAC is calculated below. This is the metric you must track quarterly.
CAC = $12,500 / 50 New Customers = $250
Tips and Trics
Map CAC separately by acquisition channel (e.g., digital ads vs. designer lead).
Review CAC quarterly, as mandated, to catch rising costs early.
Ensure marketing spend definition is consistent across finance and marketing.
If CAC stays above $250 for two straight quarters, you need to defintely re-evaluate your channel mix.
KPI 4
: Weighted Average Billable Hours (WABH)
Definition
Weighted Average Billable Hours (WABH) tells you the typical time investment across your entire service mix. It's crucial for checking if your flat-fee pricing accurately reflects the complexity of the jobs you are winning. If this number drifts up, your standard installation price might be too low for the current product mix.
Advantages
Validates pricing accuracy against job complexity.
Flags shifts toward more time-intensive installations.
Improves scheduling and labor forecasting precision.
Disadvantages
Doesn't isolate installer efficiency issues.
Relies heavily on accurate, non-padded time logging.
Can mask profitability if complex jobs are underpriced.
Industry Benchmarks
For specialized, custom-fit services like premium glass installation, benchmarks vary widely based on framing versus frameless mix. A healthy target usually sits around 85 to 100 hours, suggesting a good balance of standard and complex projects. If your WABH consistently sits below 70 hours, you might be focusing too heavily on simple, low-margin jobs that don't cover overhead well.
How To Improve
Price complex jobs (like custom cuts) higher to match time.
Incentivize sales staff toward higher-hour service packages.
Audit initial estimates against final installation time logs.
How To Calculate
You calculate WABH by weighting the billable hours for each service type by the percentage of jobs sold in that category. This gives you a single number representing the average complexity load your team handles. You must track the Product Mix % accurately for this metric to work.
WABH = Sum of (Product Mix % Billable Hours for Service X)
Example of Calculation
Say you sell two types of doors: Standard (S) and Custom Frameless (C). If Standard jobs are 60% of your volume but only take 75 hours, and Custom jobs are 40% of volume but take 120 hours, here's the math. We are aiming for the 92 hours target set for 2026.
Target 92 hours for 2026, but review the actual monthly.
Tie WABH variance directly to pricing model adjustments.
Track measurement time separately until WABH stabilizes.
If WABH drops, check if new, faster installers are defintely skewing data.
KPI 5
: Gross Margin (GM)
Definition
Gross Margin (GM) shows how much revenue is left after paying for the direct materials used in the job, specifically the Glass, Hardware, and Consumables. This metric is your primary gauge for material cost control. If your GM is weak, you're either buying materials too high or pricing the installation too low.
Advantages
Directly tracks material purchasing efficiency.
Validates if your Average Revenue Per Job (ARPJ) covers costs.
Highlights waste from measurement errors or damaged stock.
Disadvantages
Ignores all labor costs, which are significant here.
Can hide supplier price hikes if not reviewed weekly.
Doesn't account for fixed overhead costs like rent or software.
Industry Benchmarks
For specialized installation services like yours, a healthy Gross Margin usually sits between 40% and 60%. Your stated target of 790% or higher suggests you might be tracking Gross Profit Dollars or using a non-standard markup calculation, so defintely confirm what that 790% represents internally. You need to know this number weekly to react fast.
How To Improve
Negotiate volume discounts with your primary glass vendors.
Institute a strict waste tracking log for every job site.
Prioritize jobs using standard hardware over custom fittings.
How To Calculate
Gross Margin measures the percentage of revenue left after subtracting the Cost of Goods Sold (COGS). COGS includes all direct material expenses: the glass panels, the hinges, the seals, and any consumables used up on the job. You calculate this by taking the revenue, subtracting those direct costs, and dividing the result by the revenue.
GM % = (Revenue - Cost of Goods Sold) / Revenue
Example of Calculation
Say you complete one standard installation, achieving your target ARPJ of $1,095. If your material costs (glass, hardware, sealant) for that job totaled $230, here is the math to see your material control percentage.
GM % = ($1,095 - $230) / $1,095 = 0.79 or 79.0%
This 79.0% margin means 79 cents of every dollar taken covers your material costs, leaving 21 cents to cover labor and overhead before you hit profit.
Tips and Trics
Track material costs by job number, not just monthly totals.
Review GM variance against the $1,095 ARPJ target monthly.
Tie supplier rebates directly back into the COGS calculation.
If GM drops below 75%, pause marketing spend immediately.
KPI 6
: Breakeven Jobs Per Month
Definition
Breakeven Jobs Per Month tells you the minimum volume needed to cover all your operating expenses. This metric is crucial because it sets the baseline for operational scale; you must complete this many installations just to stop losing money. For this specialized glass installation service, the target scale needed in 2026 is approximately 36 jobs per month, which must be reviewed defintely every month.
Advantages
Sets a clear, non-negotiable minimum sales floor.
Forces tight control over monthly fixed overhead costs.
Helps accurately size required sales and installation teams.
Disadvantages
Ignores revenue timing; one slow month hurts badly.
Relies entirely on accurate, up-to-date fixed cost tracking.
Doesn't account for required profit margin above zero.
Industry Benchmarks
For specialized trade services like custom glass installation, breakeven volume is highly sensitive to local labor rates and material sourcing costs. While general contractors might aim for a lower percentage of capacity utilization, a high-value service like this needs to maintain a high utilization rate to cover specialized overhead. You must benchmark your required volume against your capacity, not against other trades.
How To Improve
Increase Average Revenue Per Job (ARPJ) above $1,095.
Aggressively negotiate fixed overhead like office rent or software.
Boost Contribution Margin Percentage above the target 710%.
How To Calculate
You find the required volume by dividing your total predictable monthly costs by how much profit you make on each job before those fixed costs hit. This tells you exactly how many doors you need to sell just to pay the bills.
Breakeven Jobs Per Month = Total Monthly Fixed Costs / Contribution Margin Per Job
Example of Calculation
Let's use the 2026 targets to see what the implied fixed cost structure looks like. If your target Average Revenue Per Job (ARPJ) is $1,095 and you are targeting a 710% Contribution Margin Percentage (CM%), your contribution per job is very high. To hit the 36 job breakeven target, your total fixed costs must support that level of volume.
Breakeven Jobs Per Month = $279,882 / $7,774.50 = 36 Jobs
Here's the quick math: Using the target ARPJ of $1,095 and the target CM% of 710% implies a Contribution Margin Per Job of $7,774.50 ($1,095 multiplied by 7.10). If you need 36 jobs to break even, your Total Monthly Fixed Costs must be $279,882 ($36 multiplied by $7,774.50). What this estimate hides is that a 710% CM% is highly unusual for this industry.
Tips and Trics
Track fixed costs on the 1st of every month, no exceptions.
If actual jobs fall below 36, immediately cut discretionary spending.
Review the mix of framed versus frameless jobs monthly.
Ensure your Contribution Margin Per Job calculation includes all variable labor.
KPI 7
: Labor Cost Percentage
Definition
Labor Cost Percentage (LCP) shows how efficiently you use your installation teams relative to the money you bring in. It directly measures labor efficiency against revenue. The goal is to see this percentage drop as your volume of jobs increases, meaning you are getting more output per labor dollar spent.
Advantages
Pinpoints staffing bottlenecks before they crush margins.
Shows if new hires are immediately productive on billable work.
Validates pricing strategy against the actual labor input required per job.
Disadvantages
Ignores non-wage labor costs like benefits or payroll taxes.
Doesn't show utilization; a low LCP could mean idle crews waiting for work.
Can incentivize understaffing, which hurts service quality and future referrals.
Industry Benchmarks
For specialized trade services like custom glass installation, a healthy LCP often sits between 25% and 35% of revenue. If you are scaling rapidly, you should aim for the lower end of that range, perhaps 28%, by the end of 2026. If your LCP is above 40%, you are defintely leaving money on the table or your pricing is too low for your current operational structure.
How To Improve
Increase Weighted Average Billable Hours (WABH) by optimizing installation routes.
Implement performance incentives tied to job completion time, not just hours logged.
Review your flat fee pricing structure quarterly to ensure it outpaces wage inflation.
How To Calculate
This calculation tells you the percentage of revenue consumed by total monthly wages. You need accurate payroll data and your total recognized revenue for the period.
Say you aim for an Average Revenue Per Job (ARPJ) of $1,095. If you complete 50 jobs in January, your total revenue target is $54,750. If your total payroll for installation crews that month hits $16,425, you can see the efficiency.
