Podcast 210: 5 Ways To Increase Your Profits On Every Job with Diane Gilson (Part 2)
Diane Gilson
Diane Gilson is one of my most popular guests, and in last week’s part 1 of this special 2-part series that covers the five ways to increase your profits on every job, we discussed the first two: why you need to job cost plus ways to use estimate vs. actual reports and how to locate and charge for lost or invisible costs.
In the second and final part of this series today, Diane and I will go over the last three tips on the five ways to increase your profits on every job, and this is ALL without any extra hiring, selling, or having to work harder! PLUS, Diane gives us a bonus strategic benefit that you don’t want to miss!
Like I always say, this all starts with understanding the 3-legged stool, and at the end of the day, it’s not about what you make, it’s about what you keep!
Let’s dive into the rest of these great tips!
What you’ll hear in this episode:
Last week’s recap. Did you miss it? Grab a pen and take some notes while you’re listening to Part 1 HERE!
Tip #3: How Job Costing Helps You Spot (and Eliminate) Your Low-Profit and Loser Jobs
Every low-profit and “loser” job is wiping out the profit you’re making on other jobs!
When you replace projects that lose money (or only yield minimal profits) with jobs that achieve your gross profit targets, you substantially increase your gross profit WITHOUT SELLING MORE, HIRING MORE PEOPLE, OR WORKING HARDER!
Tip #4: Job Costing Shows You Where to Shift into Higher Gross-Profit Work
Once you can see this information, shift your focus into higher gross-profit work. Here’s how.
These action steps can significantly increase your income.
And you weren’t even required to SELL MORE, HIRE MORE PEOPLE, OR WORK HARDER!
Tip #5: Add 10% (or more) of Your Gross Sales to Your Bottom Line
The biggest mistake so many roofers make is to think that they’ll make more money if they sell more.
BUT if you don’t have a stable and substantial gross profit on your jobs, and you take on the extra cost involved with higher volume, you’re just setting yourself up to earn less and less. AND, as you grow, you will create more work and stress for yourself.
Here are the three steps to make a massive difference in your take-home pay are:
First, use your job costing information to reduce your production costs.
Then figure out how to eliminate your lower-profit work or loser jobs.
FINALLY, shift into your highest gross profit type of work.
Remember: These three methods don’t require you to SELL MORE, HIRE MORE PEOPLE, OR WORK HARDER!
AFTER you’ve achieved a stellar profit margin, THEN you may want to take on a bit more volume, CAREFULLY, a step at a time (always monitoring so you maintain an excellent profit margin).
The Bonus Strategic Benefit!
When you track the kinds of work that create the best profits for your company, you can use that knowledge to make strategic and long-lasting changes to your company’s business model. For instance:
You may choose to scale down to fewer (but consistently profitable) jobs.
Or you could decide to grow your company after achieving a better profit margin.
You might choose to focus on a favorite niche(as the saying goes: “the riches are in the niches”) where you benefit financially from your specialized knowledge.
