Profit Increasing Solutions

There are really only a couple of ways to increase your profit on a job–you can increase the sales price or reduce the costs. We help with both!

As a business owner, there are many things you can to to help with both sides of the problem. With contractors, one of the best ways to be confident about the amount of profit you will make on a job is to move away from per-unit pricing (square feet, yards, linear feet, face feet, per valve, per section, etc.). I would be happy to come to your office and show you several examples of why you might be nervous with this method of bidding if you were to be awarded the largest job of your career.

Not too long ago I came across a book named “A Simple Guide to Turning a Profit as a Contractor” that addresses the problems most contractors have with profitability on jobs. We now use many of the techniques in that book to help our clients increase profit.

Some of the tools we use include:

  • Guidance and training on profitable estimating
  • Process improvement for timely information when tracking jobs
  • Custom dashboard creation to more easily track jobs
  • Custom QuickBooks reports to more easily track jobs
  • Chart of Accounts and Item list (QBO calls it ‘Products and Services’) clean up and improvement
  • Managing increasing labor and material costs
  • Negotiating better terms with vendors
  • Inventory and bulk purchasing to decrease prices

If you would like to know how much money you will make on each job if you stay within the budgeted amounts for materials and labor hours, call now for help and a free consultation.