How Springhetti Luxury Outdoor Spaces Maximized Revenue Per Man Hour

Focus on high-revenue activities: Identify the services that yield the highest profit per man-hour and pivot your business to specialize in them, even if it means dropping lower-profit services.

Strategic in-housing: Evaluate tasks currently subcontracted. Bringing high-value, frequently used services (like pool installation) in-house can significantly increase profit margins and control, provided you have the skill set and can manage the upfront investment.

Invest in efficiency tools and systems: Equip your team with highly organized tool systems and equipment (e.g., Milwaukee Packouts) to reduce wasted time searching for tools or making unnecessary trips.

Implement comprehensive checklists: Develop and enforce daily checklists for all necessary materials, tools, and processes for each job type to ensure crews are fully prepared before leaving the shop.

Leverage bulk purchasing: Analyze your annual consumption of common materials (glue, fabric, etc.) and explore bulk purchasing or winter booking deals with vendors to reduce costs and improve cash flow.

Monitor man-hours vs. estimates: Use software to track actual man-hours against estimated man-hours for each task. This data helps identify inefficiencies, optimize bidding, and ensure crews are performing effectively.

Build trust and rapport: Focus on building strong relationships and trust with clients. This can lead to increased add-ons and change orders later in the project, significantly boosting overall revenue per job without additional sales effort.