Margin killers in your business

Time for a heart-to-heart talk about a mistake that’s costing business owners some serious moolah.

We’re talking about pricing jobs and just crossing our fingers, hoping the cash will roll in.

Newsflash: it doesn’t work like that. Let’s put an end to this madness!

So, here’s the scoop: we all say……

“I’m pricing everything at a 40% margin, why isn’t there enough
money in the bank?”

But the kicker is, not many of us check if we’re actually hitting that margin!

……Yep, it’s a bit like taking a wild guess.

Extra trips to the store, materials mysteriously vanishing, those never-ending coffee breaks – all these little things sneakily munch on our profits, and they won’t give ’em back.

But wait, there’s a superhero move to save the day – it’s called Back Costing.

Back Costing is where the magic happens.

You figure out how much dough you really made on a job and compare it to your initial pricing.

Simple, right?

Here’s the deal…

You spot patterns, like those labor-hungry jobs, excessive supplier visits, the one team member who’s slower than a tortoise, or materials going MIA.

Then, you fix ’em – with training, checklists, rate bumps, or maybe just a good chat.

In a nutshell, you hunt for ways to up your game…

Any boost in productivity or cut in wastage is cash in your pocket.

And if all else fails, just nudge up your pricing.

Why?

‘Cause you work too hard for the cash not to follow.

Let’s keep those profits rollin!