What Skipping Time Tracking Is Really Costing You
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Key Takeaways
Track all time diligently: Implement a system like Jobber to track both billable time on jobs and unbillable time for activities like travel, shop work, and breaks. This data is crucial for identifying profit leaks.
Monitor 'Sales Per Hour' (SPH) and unbillable time: These two metrics are key indicators of efficiency. Set targets for SPH (e.g., $150/hour for plumbing) and aim to keep unbillable time under 10% to ensure profitability.
Bring convenience to the shop: Reduce wasted time on stops for gas, snacks, or drinks by providing these amenities in-house. Consider on-site ice machines, water, and even fuel to keep crews on schedule.
Optimize material procurement: Minimize time spent at supply houses by requesting deliveries to the shop or job site, especially for larger or frequently used items. For smaller businesses, consider setting up a basic inventory at the shop.
Implement visual cues and ownership: Use large clocks or visual scoreboards to encourage punctuality and efficiency. Have team members report their own productivity metrics in meetings to foster accountability and healthy competition.
Invest in technology and equipment: Utilize software for payroll and time tracking (like Jobber) to streamline administrative tasks and free up staff for higher-value activities. Invest in company-owned equipment to reduce rental time and costs.
Prioritize time over money in efficiency decisions: When faced with a choice between saving time or money, often spending money to save time (e.g., equipment purchases, material delivery fees) results in greater overall efficiency and profitability.
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