Crunch Your Numbers
November 6, 2017
Crunch Your Numbers
Small improvements and savings in just a couple of areas can result in a healthy uplift in your business. Here are some areas that might be worth a look.
Careful job assessment
Don’t rush an estimate without properly inspecting the job. The most common mistake is to underestimate the necessary prep or to not measure carefully. You don’t have to be far off for it to make a significant difference to your bottom line. You might also have to consider factors such as fiddley jobs, hard to reach spaces and travel time to job site.
Material cost reduction
While service and performance are probably more important factors, you can’t afford to overlook material costs. Suppliers often reward loyalty. Build and utilize your buying power to negotiate better buying terms. Harris and BH offer pro members preferred pricing, special discounts and rebates based on volume targets.
We sometimes tend to overlook some of these but make sure you are working with a realistic figure of your overall overheads and factor these in to your pricing. OK you have probably included your vehicle expenses, phone, stationary and equipment hire but have you factored in ancillaries like team refreshments and less visible costs such as bank charges and fees, interest and depreciation.
It’s good to look in the rear-view mirror and check how accurate was the estimate. Put the systems in place so you have the data you need. How profitable was the job? What area was low-balled? Analyse what type of jobs you make the most profit on. With this knowledge and more reliable info on which to base an estimate you’ll be improving your financial affairs – you can bank on it.
Share your tips for shaving costs. Send them to Tracy Johnson, Marketing Manager, Trade Services at firstname.lastname@example.org
Check out our other great articles in this November edition of Paint Pro!
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