A 150K increase in profit from doing one check.
Heath and Adrian were struggling with problems in their electrical business…
The issue wasn’t that they didn’t have enough work
(They were making 1Mil revenue with just one group home builder)
The issue was, the work they were doing was unorganised.
And this was made more apparent after back costing their jobs.
They calculated they were doing 20-23 trips to site per job.
And their Gross Profit Margin was only 22%.
Off the back of seeing that trend they made some improvements.
They put Quality Assurance Checklists in place.
Adjusted their pricing.
And used processes in the office to become better organized.
This led to an increase in Gross Profit Margin from 22% to 37%.
The changes didn’t increase overheads.
So they banked the full $150K.
What would an extra 100K do for your business?
You’ll only find it if you’re looking.
Heath and Adrian only made those changes when they knew what was wrong.
It was back costing that showed them the pattern of excess site trips and disorganisation.
Before they knew what was causing the problems they were running round like headless chickens.
Victims to the lack of organisation.
Back Costing is a no brainer when you see how much profit leakage it’ll save your business.
It’s not a matter of if you’ll find something, it’s a matter of what you’ll find.
Don’t have the time to do it yourself?
Record yourself doing it once with a software like Loom.
That becomes the training video and you delegate it to another team member.
P.s If you need help with…
We will use that call to see if we can help your business or not, and then talk next steps if we can.
Learn how we can help equip you with the tools to overhaul your business so that you are getting results for your hard work and enjoying the benefits of being a business owner.
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