Here’s the podcast:
- 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.
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.
Diane's Podcast with Dave Sullivan of The Roofer Show (the Podcast for Roofers)– "Learn how to grow your business, make more money, and have more free time."