Revenue per Tech
Definition
Revenue per tech is total company revenue divided by the number of field technicians on staff, a benchmark for operational efficiency.
What Revenue per Tech Means for Your Business
What it means
Revenue per tech is a simple but powerful benchmark. If a $4 million shop runs 10 techs, revenue per tech is $400,000. That number lets you compare yourself fairly against industry peers and against your own history.
Why it matters
Revenue per tech rises with better dispatch, better pricing, better close rate, and better upselling. It is the north star metric for operational improvement. Top residential service shops push well past $450,000 per tech.
How contractors use it
Owners review revenue per tech quarterly and benchmark against industry groups. Moving the number is usually the ops plan for the next year: fewer unbilled hours, better price book, tighter dispatch.
Real-World Example
An HVAC company with 14 techs ran at $310,000 revenue per tech. Over 2 years of focused pricing and dispatch work, they hit $445,000 per tech, adding $1.9 million in revenue without adding a single person.
Related Terms
Technician Revenue
Technician revenue is the total dollar amount of work that an individual field technician has billed over a given time period.
Effective Hourly Rate
Effective hourly rate is total billed revenue divided by total paid hours, revealing what each tech is actually earning the business per clock hour.
Average Ticket
Average ticket is the mean revenue generated per service call, calculated by dividing total invoiced revenue by the number of completed jobs.
Billable Hours
Billable hours are the portion of a technician's paid time that is actually invoiced to customers as productive service work.
Technician Utilization Rate
Technician utilization rate is the percentage of a tech's paid hours that are actually billed to customers as productive work.
Put This Into Practice with Free Software
Kaldr Tech handles revenue per tech and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.