The #1 Financial Metric Driving Profitability

Prioritize gross profit over other metrics; it's calculated by subtracting material and labor costs from revenue.

Actively job cost every project, using spreadsheets or software like Jobber, to understand actual profitability and avoid relying on hunches.

Implement strategies to minimize material waste, such as accurate ordering, returning unused items, and incentivizing crews to be mindful of consumption.

Charge appropriately for all time, including administrative tasks, travel, and after-hours work, to ensure these costs are covered and contribute to profitability.

Consider implementing a peace rate system for project-based work to incentivize efficiency and quality, with bonuses for completion and client satisfaction.

Negotiate actively with vendors for better material pricing and cultivate strong relationships, considering service level in addition to cost.

Invest in sales training and improve customer experience to effectively increase pricing, as even small price increases can significantly boost gross profit.