Models the money engine of a local service business - cost per lead by channel, booking rate, show rate, close rate, average ticket, and repeat rate - computing CAC, first-90-day cash, LTV to CAC, and a self-funding verdict, with a runnable calculator. Use when an owner asks "what does a new customer actually cost me", "can I afford more ad spend", "is my marketing paying for itself", or "which lead channel should get the next dollar". Do NOT use for gyms - use gym-money-model instead. Do NOT use for SaaS or subscription software - use unit-economics instead.
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name: local-unit-economics
description: Models the money engine of a local service business - cost per lead by channel, booking rate, show rate, close rate, average ticket, and repeat rate - computing CAC, first-90-day cash, LTV to CAC, and a self-funding verdict, with a runnable calculator. Use when an owner asks "what does a new customer actually cost me", "can I afford more ad spend", "is my marketing paying for itself", or "which lead channel should get the next dollar". Do NOT use for gyms - use gym-money-model instead. Do NOT use for SaaS or subscription software - use unit-economics instead.
---
# Local Unit Economics
Install this skill first. Every other local-service growth skill -
google-business-profile-optimizer, review-engine, local-seo-playbook,
quote-follow-up-sequences, no-show-reduction, local-referral-engine - spends
money or staff time, and this model is what says whether that spend pays for
itself. The costly mistake it prevents is judging marketing by cost per lead
instead of cost per acquired customer: a cheap lead that never books, shows, or
closes is the most expensive lead there is.
Work the example throughout: Summit Plumbing, a 4-tech residential plumbing
company in a mid-size metro, average job $450, doing $75,000 a month - about
167 jobs.
## Operating procedure
Follow the steps in order. CAC has to be computed before any verdict, and the
funnel rates have to be gathered before CAC, because the whole model hinges on
how many leads it takes to produce one paying customer.
… install to load the full skill