Study shows correlation between cancellation rate, job price

At the state and city level, job price plays a key role in cancellation rates, according to a study by Workiz.

Workiz field service management software recently released a study on the connection between job prices and cancellation rates for landscaping professionals working within the United States.

 

Analyzing 700,000 Landscaping Jobs

For this research study, Workiz analyzed 700,000 landscaping jobs performed by 2,500 Workiz user profiles over the past 6 months. 

Here's what they found:

Which State Lets You Charge the Most?

A pattern seems to emerge when looking across states, showing a correlation between average job price and cancellation rate.

For example, in New York the average price per job is $613, with an average cancellation rate of 10%, while in Nevada the average job price is $283 with an average cancellation rate of 26%, and in Ohio the average job price is $221 with an average cancellation rate of 38%. 

Click on the images to view a larger version.

Looking at average job price and cancellation rates by state

 

 

Looking at average job price and cancellation rates by city

 

 

 

 

Even within the same city, prices and cancellation rates vary greatly between companies. Take San Diego, California, for example. Within San Diego, landscaping professionals charge an average of anywhere between $217-$747 for a job. The lower the cancellation rate, the higher the average job price and vice versa. A company charging an average price of $747 per job has a 4% cancellation rate, a company charging an average price of $341 per job has a 16% cancellation rate, and a company charging an average price of $217 per job has a 32% cancellation rate.

 

 

Looking at the average job prices and cancellation rates for competing landscaping companies within San Diego, California 

 



The fact that we see the same behavior at every level (state, city, company, etc.) shows that there’s a firm correlation between average job price and cancellation rate.

Moreover, the variation in cancellation rates between competing companies (within the same city) tells us that these rates aren’t set in stone - and can actually be improved. Therefore, landscaping professionals can successfully take steps to reduce their cancellation rates and positively impact their businesses.

By reducing your cancellation rate, you’ll be able to successfully charge more per job and increase your revenue. You’ll also be able to reduce your overall business overhead, (i.e. costs of administration, employee time, gas expenditure, missed jobs, etc.)