Hey guys, I’m going to share with you today the most important financial numbers
you need to know in your business… so stay tuned.
All right, back costing. Big topic, number one priority for you to get a handle on
in your plumbing business. So are you keeping track of the projects you do?
I’m not talking about the little projects like the small maintenance jobs.
You should be able to figure those out when you send your invoices out and make
sure that the margin is okay. But do you have a process for checking the jobs,
the larger jobs, to see if they’re coming in on budget and on time?
Make sure the quantity and labor and materials are right because that is the
absolute key in driving the profitability of your business. If your projects aren’t
profitable obviously it’s basically as they say “pissing into the wind”.
So what do you need to do?
Well, just go back, keep a record of the labor, the material, cost it out, figure
out what the profit margin is, work out your gross margin, and then you know
whether you’re on track or not. So I just encourage you to back cost your jobs
because if you don’t you don’t know what’s working. You’ll find that some of your
projects are good, some are rubbish, some of your clients are good, some are
rubbish… You don’t know the difference. That’s the tip today guys. Look into the
back costing because it’s absolutely critical.
Hey, I hope you found that helpful. You can share this on the social media if you
think some of your friends would find it useful. Please do that… Any questions
you’ve got about back costing or any of your numbers, just put them in the chat box
below, and I’ll see if I can help you out with those.
Awesome guys catch you again soon.