What is Trades Business Performance?
Trades Business Performance measures how a sole proprietor tradesperson compares against US averages across 8 operational and financial dimensions: annual revenue, profit margin, jobs per month, average job value, marketing method score, pricing strategy maturity, repeat client rate, and online presence. It turns anecdotal "how am I doing" into concrete benchmarks rooted in industry data.
The Formula
Trades Business Performance = Average percentile position across 8 dimensions versus US sole proprietor tradesperson data
Worked Example
A self-employed electrician in the Midwest with 7 years experience benchmarks their business against the Angi Trades Report averages.
- Annual revenue: $95,000 vs average $115,000 for electricians, slightly below average
- Profit margin: 22% vs average 20%, above average due to low marketing spend
- Jobs per month: 20 vs average 18, slightly above average volume
- Average job value: $400 vs average $630 for electricians, well below average, indicating underpricing on larger jobs
📌 The electrician is losing $20,000 per year in revenue compared to peers, not because they work less, but because average job value is dragging the total down. Raising average job value by $230 (closer to peer average) through better quoting, day-rate minimums, and scope-based pricing would add $55,000 in annual revenue at no extra time cost.
Why This Matters
Pricing confidence
Most sole proprietor tradespeople underprice because they compare only against other local tradespeople who are also underpricing. Benchmarking against national averages reveals that charging more is both possible and normal, and typically raises revenue 10-25% with no extra hours worked.
Growth identification
Knowing exactly which dimension drags your business below average tells you where to focus. Low revenue with high margin means a marketing problem. Low margin with high revenue means a pricing problem. Low repeat clients means a follow-up problem. Benchmarking points to the single highest-leverage fix.
Operational efficiency
Angi data shows the gap between top-quartile and bottom-quartile tradespeople is typically $60,000-$90,000 in annual revenue for similar hours worked. The difference is almost always operational, pricing, scheduling, admin, and follow-up, not skill or effort.
Common Mistakes
❌ Undercharging versus industry averages
Most tradespeople set prices based on what local competitors charge, which creates a downward spiral. National benchmarks show most sole proprietors underprice by 10-25% versus what the market actually pays, raising prices closer to averages rarely loses work and immediately raises profit.
❌ No marketing beyond word of mouth
Word of mouth is powerful but slow and unpredictable. Angi data shows tradespeople with a Google Business Profile, active reviews, and a simple website win 2-3x more work at higher job values. The lowest-cost marketing investment delivers the highest return in trades.
❌ Not tracking profit per job
Most sole proprietor tradespeople track revenue but not job-level profit. Without profit tracking, loss-making jobs go unnoticed and quoting stays fixed at "feels right". A simple job sheet capturing hours, materials, and final invoice reveals which job types are profitable and which should be repriced or dropped.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Plumber annual revenue | $120,000+ | $100,000 | Below $70,000 |
| Electrician annual revenue | $140,000+ | $115,000 | Below $80,000 |
| General contractor annual revenue | $160,000+ | $125,000 | Below $85,000 |
Source: Angi and HomeAdvisor Trades Report
Benchmark data sourced from Angi and HomeAdvisor Trades Report.