A customer pays $9/mo for the Priority Protection Plan. Sounds like nothing. Here's the real math from my Johnston Air books:
- $108/year direct revenue
- 84% retention year over year
- Average tenure: 11 years
- Lifetime PP revenue: ~$1,188
But that's not the real number.
Of those PP customers over 11 years:
- 22% replaced a full system through us (~$8,400 average install)
- 38% added another zone, ductless head, or upgrade (~$2,200 average)
- 91% used us for service calls vs. shopping around
Real LTV from one $9/mo membership: $3,800–$4,500.
This is why recurring matters more than people think. It's not the $9. It's the 11-year relationship that the $9 buys you.
Are you running a maintenance program? What's your retention rate?