# Demand Utilization

#### Why this metric matters:

Based on a given location, the number of chairs, and the hours that are open - how many appointments could you theoretically see. This tells you the absolute maximum amount of business you could do if nothing else was done aside from customer appointments. 

However, this isn't really how things work. There are time blocks required for other areas of your business, as well as employee lunches, breaks, training etc. This is where we surface the realistic service hours that you could fill with customer appointments. 

You now have a very accurate picture of how many hours were spent on service appointments, compared to a theoretical and realistic potential capacity. 

***

#### How to read this metric:

***

#### Definitions:

<details>

<summary>Theoretical Service Hours</summary>

Based on the location hours, the number of chairs available and the number of employees staffed, how many hours could be filled with appointments. This excludes things like breaks or other business responsibilities outside service appointments

</details>

<details>

<summary>Realistic Service Hours</summary>

This is the total theoretical service hours ***excluding*** personal and business blocks. This is much closer to what a typical day's availability would look like &#x20;

</details>

<details>

<summary>Realistic Demand Utilization </summary>

The utilization is calculated by taking the number of actual appointment hours divided by the realistic service hours.&#x20;

`800 appointment hours / 1000 realistic hours = 80% demand utilization`   &#x20;

</details>

{% hint style="warning" %}
Business and Personal block hours must be logged directly in Booker. It's recommended that these are only used for true time blocks to help you get the most accurate data
{% endhint %}

***