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Irrigation service Conversion Improvement Break-Even: worked example

Find the improvement needed to pay for a sales process change.

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Irrigation service / service visit economics
Answer

With the illustrative inputs below, the result is 2 percentage points.

Try this with your own numbers

Formula and worked example

Required close-rate improvement = cost / (leads × contribution) × 100

Example figures
InputExample
Monthly improvement cost1,000
Monthly qualified leads200
Contribution per extra sale250
Calculated result2 percentage points

Choose reliable inputs

Plan materials, travel and crew time before committing to a price. For this irrigation service calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one service visit.

  • Fittings: include the portion belonging to this service visit or reporting period, and record where the value came from.
  • Troubleshooting: include the portion belonging to this service visit or reporting period, and record where the value came from.
  • Site access: include the portion belonging to this service visit or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

How much must conversion improve to fund follow-up?

Compare percentage points, not percentage growth. Values above 100 points are unattainable.

Compare a different assumption

What if this input changes?

If monthly improvement cost rises by 10%, this example changes by 0.2 percentage points. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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