EagleView asked Dave Sullivan of The Roofer Show to give contractors advice on how they can better manage their businesses.
Dave recommends this seven-step process to decrease slippage and increase job profits.
There are two ways to make more profit on your roofing jobs: Sell those jobs for more money or get them done for less money. Pretty simple, isn’t it?
But at this time of year and with a booming economy, most contractors I talk with boast about having more work than they can handle. “More work than you can handle?”
Then they tell me they’re killing themselves working long hours and spending most of their day just putting out fires. And the worst part is they are making less money and have more stress.All it takes is one injury, a key employee poached, or an equipment breakdown to be pushed over the edge.
You just learned that the job you figured at 35% gross profit came in at 20%. And you didn’t find out until two weeks after it was completed, long after you had the chance to do something about it.
That’s $150,000 on $1 million of sales just gone—slipped through the cracks.
It’s called slippage—the difference between estimated and actual gross profit, which usually stems from a miscalculation in labor, materials, or waste.
You’re not getting any more money for that full book of business, so let’s turn our attention to eliminating slippage and maximizing the profit on each job.
To do so, you need a process to follow on every job. By using consistent, documented systems and checklists every time, you can avoid the mistakes of the past and save your business time and money.
I’ve been in the roofing business for more than 30 years with more than $150 million in sales. On my podcast, The Roofer Show, I share what I’ve learned over the years to help roofers take their businesses to the next level. Finding and reducing slippage is a key step that all roofers can take to boost business.
There are seven crucial steps that roofers can follow to eliminate slippage and increase their job profits. Read them on eagleview.com.