Shower Door Installation Costs: $28k Monthly Overhead

Shower Door Installation Service Running Costs

Expect monthly running costs for a Shower Door Installation Service to start around $28,800 to $38,000 in 2026, depending on installation volume Your largest recurring expense is payroll, accounting for over $20,400 per month in the first year, followed by glass and hardware sourcing (180% of revenue) You need a clear plan to defintely cover the initial EBITDA loss of $94,000 in Year 1 The model projects break-even in October 2026, requiring 10 months of working capital coverage Focus on optimizing your Customer Acquisition Cost (CAC), which starts high at $250, to accelerate the 36-month payback period

7 Operational Expenses to Run Shower Door Installation Service

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Payroll	Staff Wages	In 2026, staff wages total $20,417 per month, covering 35 Full-Time Equivalents (FTEs) including the General Manager and technical staff	$20,417	$20,417
2	Materials	Variable Cost	This is the largest variable cost, consuming 180% of revenue in 2026, requiring tight supplier negotiation and defintely inventory management	$450	$20,417
3	Rent	Fixed Overhead	Fixed monthly rent for the workshop and storage space is $3,800, a non-negotiable fixed overhead expense	$3,800	$3,800
4	Marketing	Fixed Overhead	The annual marketing budget starts at $15,000 ($1,250 monthly) in 2026, aimed at reducing the initial $250 Customer Acquisition Cost (CAC)	$1,250	$1,250
5	Insurance	Fixed Overhead	Mandatory liability coverage costs $1,200 per month to protect against installation errors and property damage claims	$1,200	$1,200
6	Vehicle Costs	Variable Cost	Operational vehicle costs, including fuel and routine maintenance for the service vans, represent 50% of total revenue in 2026	$450	$20,417
7	Software	Fixed Overhead	Essential operational software for customer relationship management and design rendering costs a fixed $450 per month	$450	$450
	Total	All Operating Expenses		$28,017	$67,951

What is the total monthly operating budget needed to sustain the Shower Door Installation Service for the first 12 months?

The baseline monthly operating budget needed to sustain the Shower Door Installation Service for the first 12 months is $27,617, which covers fixed overhead and payroll before factoring in sales-dependent costs; understanding this baseline is key to securing the necessary capital runway, and you can review industry benchmarks here: How Much Does A Shower Door Installation Service Owner Make? Honestly, this number is your floor, not your ceiling, as you defintely need cash to cover variable expenses as you start booking jobs.

Fixed and Payroll Commitments

Monthly fixed costs are set at $7,200.
Payroll commitment totals $20,417 per month.
These two costs sum to a non-negotiable $27,617 burn rate.
This covers core operations like rent, insurance, and salaries.

Variable Costs and Runway

Variable costs are estimated at 29% of revenue.
This covers materials, subcontractor fees, and job-specific costs.
A 12-month runway requires $331,404 minimum cash reserve.
The runway calculation is ($27,617 x 12 months).

Which recurring cost category represents the largest financial risk and requires the most control?

For your Shower Door Installation Service, payroll and Cost of Goods Sold (COGS) together form the biggest financial exposure, mainly driven by material costs. If your material sourcing cost is truly hitting 180% of the base price, controlling procurement is your immediate survival lever, as this dwarfs standard operating expenses; understanding these drivers is certianly crucial, so review What Are The Top 5 KPIs For Shower Door Installation Service Business? to see how to track this.

Control Material Sourcing Cost

Material cost at 180% signals deep operational trouble.
This figure drastically inflates your COGS percentage.
Focus on locking in better supplier agreements immediately.
You must reduce material spend to protect project margins.

Manage Installation Labor Efficiency

Skilled installers are the second largest variable cost.
Payroll must scale predictably with active customer projects.
Track installer time per job versus the budgeted installation fee.
If onboarding takes 14+ days, churn risk rises among new hires.

How much working capital cash buffer is required to cover the projected $94,000 EBITDA loss in Year 1?

The required working capital buffer for the Shower Door Installation Service must cover the projected $94,000 EBITDA loss in Year 1, plus the operating burn until October 2026, and sustain the business through the 36-month payback period, which is a major funding hurdle; for context on maximizing margins to shorten this, review How Increase Shower Door Installation Service Profits?

Covering Year 1 Shortfall

The initial capital injection must absorb the $94,000 negative EBITDA projected for Year 1.
This initial loss is just the starting point; you need cash to fund operations until break-even.
You must defintely model the monthly cash burn rate leading up to October 2026.
This calculation dictates the minimum capital needed before revenue stabilizes.

Total Runway Requirement

The total buffer must bridge the gap until the October 2026 break-even milestone.
After breaking even, you still need capital for the 36-month payback period goal.
This means the total capital ask is (Year 1 Loss + Monthly Burn until Oct 2026) + (36 months of required profit margin).
If your average project revenue is $2,500, you need to know how many projects per month cover fixed costs.

If revenue targets are missed by 20% in the first six months, what immediate cost cuts can stabilize the business?

If the Shower Door Installation Service misses its first six-month revenue target by 20%, you must immediately reduce variable lead generation spend and pause non-essential contractor overhead to preserve runway, as detailed in this analysis of How Much Does A Shower Door Installation Service Owner Make?

Cut Variable Lead Spend First

If the target Average Order Value (AOV) is $2,500 and the maximum allowable Customer Acquisition Cost (CAC) is $450, every dollar spent above that threshold directly erodes margin.
If lead volume drops 20%, you should cut the corresponding marketing budget by 30% immediately; this is defintely safer than cutting installation labor rates.
A 30% cut on a $15,000 monthly lead budget saves $4,500 cash flow this month alone.
Focus spend only on channels showing a proven return within 14 days.

Freeze Fractional Overhead

Look at roles like the Sales Consultant FTE 05. If this role costs $6,000 monthly plus associated costs, pausing that contract saves $6k in fixed overhead.
Pause any fractional hiring not directly tied to current, confirmed installation schedules.
If the current monthly fixed overhead is $25,000, cutting $6,000 overhead moves you closer to profitability faster than waiting for sales to rebound.
If onboarding takes 14+ days, churn risk rises if you cut measurement staff too soon.

Key Takeaways

Expect monthly running costs for the Shower Door Installation Service to start between $28,800 and $38,000 in 2026, driven primarily by fixed overhead near $27,600.
Payroll ($20,417 monthly) and glass/hardware sourcing (180% of revenue) represent the largest recurring expenses and cost control levers.
The business requires sufficient working capital to cover the projected $94,000 EBITDA loss in Year 1 until the financial model predicts break-even in October 2026.
Achieving the 36-month payback period requires immediate focus on reducing the initial Customer Acquisition Cost (CAC), which starts high at $250 per customer.

Running Cost 1 : Payroll and Staff Wages

2026 Wage Commitment

Your 2026 payroll commitment is fixed at $20,417 monthly. This covers 35 FTEs, including the General Manager and all necessary technical staff executing shower door measurement and installation. This represents a substantial, non-negotiable fixed operating expense you must cover monthly.

Cost Breakdown

This $20,417 figure is the total monthly cost for 35 Full-Time Equivalents (FTEs) budgeted for 2026. It bundles the salary for your General Manager and the wages for the technical staff doing the installation work. To estimate this, you need quotes or internal salary bands for skilled glass installers and the GM role. This cost sits firmly in fixed overhead.

Staffing Control

Staffing efficiency is crucial since this is a large fixed cost. Track labor utilization against installed jobs to ensure every FTE is productive. Use specialized contractors for overflow work instead of immediately adding permanent FTEs. It's defintely easy to overstaff before volume is certain.

Hurdle Rate

With $20,417 in fixed monthly wages, your required revenue floor just to cover payroll is high. You must ensure your average job margin easily absorbs this cost before factoring in the 180% material cost against revenue. This wage base sets a demanding baseline for sales volume.

Running Cost 2 : Glass and Hardware Sourcing

Sourcing Cost Crisis

Glass and hardware sourcing is your biggest financial threat, projected to consume 180% of revenue in 2026. This cost structure guarantees massive losses before fixed overhead is even considered. You must focus on reducing this input cost right now, or the business won't survive the year.

Material Cost Drivers

This variable expense covers all raw materials: the custom-cut glass panels and the metal/seals (hardware) for every shower door installation. To model this accurately, you need the average material cost per unit and the projected volume of installations for 2026. What this estimate hides is the risk of unexpected price hikes from your glass supplier.

Unit cost of glass panels
Cost of hinges and seals
Freight/delivery fees

Cutting Input Costs

You must aggressively negotiate supplier pricing; 180% of revenue is not a viable margin. Try securing volume commitments or dual-sourcing critical hardware components to build leverage. Avoid overstocking expensive glass inventory, which ties up cash and risks becoming obsolete if designs shift. Honestly, aim for 70% of revenue or less.

Lock in 12-month pricing
Mandate tiered volume discounts
Review hardware specs

Inventory Control

Tight inventory management means ordering glass only after deposits are secured, not speculatively. If onboarding takes 14+ days, churn risk rises, but ordering too early means holding capital hostage in raw materials. Keep your Work In Progress (WIP) low, defintely.

Running Cost 3 : Workshop and Storage Rent

Rent is Fixed Overhead

Your workshop and storage rent is a hard, fixed overhead cost that must be covered regardless of installation volume. This expense clocks in at $3,800 monthly. Since it doesn't scale with jobs, managing your overall fixed cost base is critical for reaching profitability quickly in this service business.

Workshop Inputs

This $3,800 covers the physical space needed for staging materials, tool storage, and light administrative work. To estimate this, you need signed lease agreements specifying the total square footage and the monthly rate. This is a pure fixed cost, unlike variable costs like glass sourcing, which consumes 180% of revenue in 2026.

Fixed at $3,800 per month.
Covers staging and storage needs.
Requires a signed lease document.

Space Cost Control

Since this rent is non-negotiable, optimization focuses on efficiency, not direct reduction. Avoid leasing excess space early on; look for flexible terms. A common mistake is over-leasing based on projected growth before sales volume supports it. If you need more space before Q3 2026, expect this number to rise significantly.

Prioritize short-term lease options.
Ensure current space utilization is high.
Review insurance costs alongside rent.

Rent's Role in Break-Even

This $3,800 must be covered by your gross profit margin before you make a dime for the owners. If your average installation yields $1,500 gross profit, you need at least 2.5 jobs per month just to cover this single overhead item. This is a low hurdle, but it must be met defintely.

Running Cost 4 : Online Marketing Budget

Marketing Spend Baseline

The initial online marketing budget for 2026 is set at $15,000 annually, or $1,250 per month. This spend is specifically allocated to drive down the starting Customer Acquisition Cost (CAC) of $250 per new installation project. We must track marketing efficiency closely against this initial benchmark to ensure viability.

Inputs for CAC Calculation

This $15,000 covers digital advertising, SEO efforts, and local listing optimization necessary to find homeowners needing new glass enclosures. You need to track spend versus leads generated, and then leads versus closed sales to calculate CAC accurately. This budget is small compared to $20,417 in monthly payroll alone.

Track spend by channel.
Measure lead-to-close rate.
Calculate actual CAC monthly.

Reducing Acquisition Cost

Reducing the $250 CAC requires focusing on high-intent, local searches rather than broad brand awareness campaigns early on. Since glass sourcing is 180% of revenue, efficiency here matters more than marketing spend reduction alone. You can't afford to waste any of that $1,250 monthly allowance on unqualified clicks, defintely.

Prioritize service area targeting.
Use referral incentives now.
Benchmark against $1,200 insurance cost.

CAC Performance Check

If the $1,250 monthly spend doesn't move the CAC below $250 within the first quarter of 2026, you need an immediate audit. High CAC combined with 180% material costs means profitability vanishes fast. That initial marketing investment must prove its worth quickly.

Running Cost 5 : General Liability Insurance

Mandatory Liability Cost

You must budget $1,200 monthly for mandatory general liability insurance. This coverage is non-negotiable for any installation business handling property modifications, directly addressing risks from installation errors or property damage claims during service calls. It's a fixed operational necessity.

Cost Inputs

This $1,200 monthly premium covers potential losses from mistakes made while installing glass doors. For estimation, you need the required coverage limits specified by contractors or local regulations, multiplied by the quoted monthly rate. It sits as a fixed operating expense alongside rent and software costs.

Covers property damage claims.
Protects against installation errors.
Fixed cost, not revenue dependent.

Managing Premiums

To manage this, shop quotes annually rather than renewing automatically. Reducing risk exposure through rigorous staff training on installation protocols can lower future rate hikes. Honestly, cutting corners here defintely invites catastrophic financial exposuer if a major claim arises.

Shop three carriers yearly.
Maintain zero prior claims history.
Ensure staff training logs are current.

Coverage Review

If your installation volume increases significantly, your insurer may re-evaluate your risk profile, potentially increasing premiums above the initial $1,200 baseline. Always review your policy limits against your average project value to ensure adequate protection.

Running Cost 6 : Vehicle Fuel and Maintenance

Vehicle Cost Dominance

Operational vehicle costs, covering fuel and routine maintenance for service vans, consume a staggering 50% of total revenue in 2026. This level of expense means transportation efficiency isn't just a line item; it's the primary determinant of whether you make money after paying for materials.

Van Operations Input

This 50% expense covers keeping your specialized vans running for site measurements and installations across the service area. To properly forecast this, you need hard inputs: the average daily mileage per crew, the expected cost per gallon, and the required preventative maintenance schedule for the fleet. Still, this operational spend is larger than your entire fixed overhead, which sits at just $3,800 for rent.

Estimate miles driven per job.
Set firm maintenance budgets.
Factor in insurance ($1,200/month).

Cutting Fuel Drag

You must aggressively manage this 50% cost by maximizing route density; that is, scheduling more installations per mile traveled daily. If you don't control vehicle usage, you defintely can't absorb the 180% revenue hit from glass and hardware costs. Focus on tighter geographical clusters for new jobs to keep vans local.

Mandate route planning software use.
Negotiate fleet fuel card rates.
Standardize service vehicle models.

Cost Structure Check

When vehicle costs consume 50% of revenue and materials cost 180% of revenue, your gross margin is severely negative before accounting for the $20,417 monthly payroll. This structure demands a pricing model that captures the true cost of mobilization and material handling, or you'll run out of cash quickly.

Running Cost 7 : CRM and Design Software

Fixed Software Spend

You need software for managing customer leads and designing glass layouts. This operational necessity is a fixed cost of $450 every month, regardless of how many doors you sell. This amount hits your budget before you even book the first job, so plan for it now.

Software Requirements

This $450 covers two critical functions: managing customer interactions (CRM) and creating accurate glass designs. For a service like yours, this means tracking leads from designers and contractors and ensuring measurements for frameless doors are spot-on. This is a fixed overhead, not tied to revenue volume.

Covers CRM platform fees.
Includes design rendering tools.
Fixed at $450 monthly.

Controlling Software Costs

Don't overbuy features you won't use right away. Many specialized tools offer tiered pricing; starting small prevents paying for enterprise features needed only at scale. If you're just starting, look for introductory offers or bundled deals with your accounting software, defintely check for annual discounts.

Avoid premium tiers initially.
Check integration discounts.
Review usage quarterly.

Overhead Reality Check

Since this $450 is fixed, it adds to your operational burn rate alongside rent ($3,800) and insurance ($1,200). You need to ensure your average project margin easily covers this baseline expense before factoring in the huge material costs.