EP56: The Components of Gross Profit
In this episode of the DYB Podcast, the DYB team discuss job profitability. They give a rundown on how to properly track the right information for growth and profit as these are the real indicators of a successful business. The team tackles this from different angles on what should and should not be included in job costing.
The DYB team also share their company processes and some details on how to do job costing properly, what should be taken into account for each job, from labor costs and overheads such as employment taxes and insurance to other things like Porto-johns and sundries. They give practical tips and tools to streamline paperwork and ensure better job profitability.
WHAT YOU’LL LEARN:
- The job costing process
- How to properly track the right information for growth and profit
- How to track and account for business overheads
- Lead sources that provide the best profitability
“If we don’t job cost and there are a few jobs going on, it all kind of blends together and then you realize, or you don’t realize the job that you shouldn’t be taking.”
“From time to time, depending on the job, because we have what we call ‘per diem’ which is travel-work where we pay out for meals and also for hotel stays and we will include that in the larger projects because it’s part of the bid process.”
“One of the things about job costing is that it’s not an exact science, sometimes you adapt for it and really, at the end of the day, what matters is figuring out who your top performers are.”
“I find that people work better with different people.”
“Where do we want to invest our time and money in marketing? Well, you would definitely put it into your most profitable lead sources and so if you don’t keep track of that, then you’re not going to have any clue.”
1:10 Ron’s process on job profitability
6:37 Greg shares his job costing process
8:55 Accounting for sundries and vendor relationships
18:46 The labor portion of job costing
23:00 What’s the use for all the job costing data?
25:59 What lead sources provide the best profitability?
LINKS & RESOURCES MENTIONED IN THIS EPISODE:
ADDITIONAL FREE RESOURCES:
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