The Profit Builder

why knowing the story your numbers tell is critical to your success!

If you want to make more money and have more peace of mind in running your contracting business, then watch this video.

More than anything else I do with clients, teaching them how to interpret the story their numbers tell is the #1 DRIVER in helping them increase their profitability!

Having worked with hundreds of contractors for the past 25 years, I’ve learned that there are a handful of numbers that are the key drivers to your profitability and success. Yes, I know construction can be complicated, but if you can understand the key numbers to pay attention to that drive your success, then you can have more control over the outcomes.

In this video, I walk you through a real example of what numbers you want to look at, and how to interpret and use that information to your advantage in making a consistent profit on projects.

In my next video, we’ll dig into planning for profits, which moves from looking at historical information to planning for the future.

Until then, I have a free resource to help you know the one CRITICAL number that will make all the difference in being able to generate a consistent profit in your business. My Overhead Breakeven Percentage Calculator will give you the formula for figuring out what your overhead breakeven percentage is. (hint: It’s not the percentage that’s on your profit and loss statement.)

Warmest,
Vicki

P.S. If you want more tools to help you increase the profits in your contracting business, check out my book, ”The Profit Bleed – how managing margin can save your contracting business”. For a limited time, it’s FREE – you just pay for shipping and handling.

Apply these 3 secret techniques to price projects more profitably

Project profitability begins in the bidding stage, and if you miss the mark here, it’s impossible to make it up in production.

As a contractor, you live and die by managing gross profit margin, and that starts with how you price your projects.

In today’s video I walk you through the 3 secret techniques to pricing project more profitability at the bid stage – stacking the odds in your favor of making more money on your bottom line.

Make sure to grab the FREE resources I offer at the end to help you make a more consistent profit in your contracting business!

P.S. If you want more tools to help you increase the profits in your contracting business, check out my book, ”The Profit Bleedhow managing margin can save your contracting business”.  For a limited time, it’s FREE – you just pay for shipping and handling.

PPS. Grab my free and easy-to-use Labor Cost Calculator tool to help you price for a consistent profit when bidding labor.

the ultimate guide to increasing project profits

This past year has been amazing for the construction industry in terms of the high demand for remodeling and building services.  So why is it then that your gross and net profits are not keeping pace?

While construction is complex in many ways, and lord knows, the supply chain has caused prices to rise, and delivery times to slow, it’s likely those are not the only reasons your profits are lagging.

In today’s video, I show you the key places where profits are made and lost in a contracting business and give you ways to stop the profit bleed and start increasing your bottom line!

Make it a great day!

Warmest,

 

PS. If you want more tools to help you increase the profits in your contracting business, check out my book, ”The Profit Bleedhow managing margin can save your contracting business”.  For a limited time, it’s FREE – you just pay shipping and handling.

6 Hiring Myths

Getting work isn’t the biggest challenge facing contractors today but finding the best people to do the work is! The recent surge in construction demand has clearly illuminated the shortage of qualified people in the trades. In order to keep up with the demand, you need to start thinking differently about how you recruit and hire employees.

Join me as I talk with Ed Earl, COO of Contractor Staffing Source, to hear the prevalent hiring myths that may be stopping you from finding that next great hire, and learn how you can do it differently and get a better result.

Here’s what you’ll get from today’s interview with Ed:

  • How to know the best time for bringing on new employees
  • Ways to find employees outside the construction industry (that are truly qualified to do the job!)
  • A different way to think about outsourcing recruiting (that costs much less than traditional headhunters)
  • Hiring best practices

At the end, Ed shares with you a way to ‘test drive’ their services at no charge, AND, a coupon for $250 off future services.  This video is NOT a sales pitch, it’s got valuable content that will help you right now in your hiring and recruiting.  Here is the link (affiliate) to Ed’s free resource: https://suiterbusinessbuilders.contractorstaffingsource.com/

turning goals into reality

Have you ever set goals for your contracting business only to have them not turn out? Want to know the secret to having your goals turn into reality?

In today’s video, I share the story of how I helped my client Dan do just that for his design-build business.

This formula will help you in every area of your life when it comes to goal setting.

If you want to learn about more ways to generate a consistent profit in your contracting business, check out my book, The Profit Bleedhow managing margin can save your contracting business.”

how to maintain profits when adding staff

Have you ever worried about how adding overhead staff could affect your bottom line? Or have you ever felt unsure of how to maintain margins on projects when adding field employees?

Phil had these same concerns, and I was excited to record this video and address how to have more confidence and clarity about how to maintain margins and profits in your contracting business when adding employees.

At the end of the video is a link to a FREE guide that will let you know your numbers better, and help you know how to maintain the profits at the right levels for your contracting business.

​Use this guide to help you get more confident in your numbers and build a more financially healthy contracting business!

how doing this one thing will make for a smoother job process

The project started great, and the results were beautiful, but the middle felt like a slog!

Sound familiar?

You become so focused on getting the work done right, and delivering a result you can be proud of, but then the customer interface is not always smooth. Adding this one small detail can make the entire experience for both you and the customer significantly better, and allow for a smoother job process.

In today’s video discover how doing this one thing can get clients to be more cooperative and make decisions faster and help you and them have a more collaborative relationship.

If you missed my last video titled “the first step to solving that problem,” you may want to check it out.

the 1st step to solving that project problem

When Jason posed the question below, I immediately wanted to jump in and solve his problem.

As I considered all the possible reasons he is experiencing this challenge on projects, I thought about all the possible issues that could be causing Jason’s problem.  “I’m the expert,” I thought – so I’d better give him a thorough answer!

Well – no.  At least not right away.  That’s when I remembered the first step in solving any problem . . . and I’d not yet taken that step.

Here is Jason’s question: “I’m struggling with the client experience during the project. The beginning is great, the end result is stellar, middle really sucks. What advice would you have to help?”

In today’s video, I talk about what the first step is to resolve any problem or breakdown, and what questions I asked Jason to allow me to best help him solve his issue.

Make sure to tune into next week’s video where you’ll learn how I helped Jason solve his problem/

Give today’s video a listen now (just 7 minutes) so you can begin using this 1st step in solving that problem you’re currently facing.

how much should rent be for your contracting business?

As a contractor have you ever wondered if the amount you spend on rent, (facility costs) is on par with how much other contractors are spending? Or have you ever considered moving into a new space or buying a building but just were not sure of the amount you should charge the business?

If you said yes, you’re not alone.

When Reese asked me this question I was compelled to go dig into the data and find the answer. Some of what I learned surprised me, and it may you too!

“What percent of revenue should my rent be if I’m trying to grow my business? Next year I’m going to look into buying property and then rent it to the business, but I’m not sure what a reasonable monthly payment should look like?”

In today’s video, you’ll learn what the numbers showed is the average cost for subcontractors and general contractors (of varying sizes) for facility costs (rent, utilities, insurance, repairs & maintenance, taxes, and janitorial). After watching this short video you’ll be able to do this analysis on your company as well!

Go do a bit of analysis on your own business and see what your numbers show for facility costs and see where you compare. Simply run a profit & loss statement for the last 5 years and do a side-by-side comparison (make sure to click the button that says “% of income”).

If you are interested in more ways to increase the profitability of your business, make sure to check out my book, “The Profit Bleed – how managing margin can save your contracting business.”

Connor asked, “should I bid by product or by services?”

frustrated person on the phone with hand on head

As a contractor do you ever struggle with trying to explain to a prospective customer the reasoning behind the pricing of a project?

Last week in the “just ask Vicki” series, a kitchen and bath remodeler (Connor) asked me this question on the subject:

“Would you recommend building our bids in terms of the “product” that the customer is buying (e.g., Bathroom Remodel, Kitchen Remodel) – or based on the actual “services” offered (e.g., demo, tiling, painting)?”

I love Connor’s question, and in the rest of his question, he actually answered his own question – in part, but there are two distinctions that as you read on, can help him (and you) find an easier path in the sales process. Here is what Connor adds to his question:

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