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Glossary

Plain-language definitions of every term used across these guides.

Qualified opportunity
A lead you actually presented an estimate or proposal to — not every inquiry, only the ones that reached the quoting stage.
Close rate
The percentage of qualified opportunities that turn into signed, paid work.
Direct job cost
A cost tied specifically to one job — labor, materials, subcontractors, permits. Does not include overhead.
Overhead
Whole-business costs not tied to any single job — rent, insurance, office staff, your own salary, marketing spend.
Gross margin
Job revenue minus direct job costs. Does not account for overhead.
Break-even margin
The gross margin per job needed, on average, to cover your monthly overhead given your typical job count.
Callback
A return visit to fix something related to a job you already completed — not a new, unrelated failure.
Callback cost
The full dollar cost of a callback: labor, travel, materials given at no charge, and the billable work that visit displaced.
Displaced productive capacity
The value of billable work a technician could have done instead of the time spent on a callback.
Baseline
Your own current measurement of a metric, used as the comparison point for future measurements — not an external industry number.
Lead response time
The time between when a prospective customer first reaches out and when your business first responds.
Technician utilization
The percentage of a technician's paid time spent on billable work.