REVENUE TRACKING

DAVE & D

AVE

CLIP S

OFTW

ARE

REVENUE TRACKING

Knowing what jobs produce the most.

What are you selling?Time and Expertise

• Systems • Equipment• Labor

WHAT ARE YOUR LIMITS?

Man hours – TimeProduction Employees Times hours available.

8 employees, 40 hours, 45 weeks (mowing season) =

14,400 hours

What is the most important thing you can learn about your customers?

Not very exciting, but necessary.

Total company gross sales: $400,000 Total production hours – 14,400 Dollars per hour – $27.77 Total profit - $28,000 (7%) Business Cost=Sales-Profit = $372,000

Which is the better job?

ABC ShoppingPrice - $100.00 per service

Or

XYZ ShoppingPrice - $50.00 per service

ABC Shopping – 5.26 hours

XYZ Shopping – 1.39 hours

How much time does it take?

ABC Shopping – 5.2 hours $100.00/5.26 = $19.01 per hour

XYZ Shopping – 1.39 hours $50/1.39 = $35.97 per hour

Formula is (Price of the job)/(Time Spent)

= Dollars we earned per hour

Assuming my costs to be the same per hour:

If all my jobs were like ABC, my gross sales would be: $19.01 times 14,400 hours = $273,744 Business cost of $372,000

Loss of $-98,256

Assuming my costs to be the same per hour:

If all my jobs were like XYZ, my gross sales would be: $35.97 times 14,400 hours = $575,568 Or $575,568(Sales)-372,000(BC) =$203,568 in Profit or 35%

How can you do revenue tracking?

You have to track every dollar on every job for a significant period of time.

You have to say “No” to non-profitable jobs.

Which would you want?

$-98,256 loss

Or

$ 203,568.00 profit

How can you do revenue tracking?

You have to track travel time and make sure that it is part of the “dollar per hour” equation.

An Example of Job Costing in CLIPxe

Maryland Institute

George Cress

What happens if I raise all my Prices?

Do I make more money?

Why not?

Does it really work?

Company I know Lowest dollars per man hour – $44.99 $600,000 Gross sales 38% profit after owner salary

What would you rather have?

5% of $2,000,000 company ($100K) Or

38% of a $600,000 company ($223,000)

CLIP2GO

CLIP2GO

Collect the information at the job

Download into the home system when done.

CLIP2GO

Toy or Tool?

Reduces data entry time

Increases accuracy

Will it increase my profits?

YOUR BUSINESS:A PRODUCT

(A money making machine)

E-MYTH

Michael Gerber - The E-Myth Your business is your product Work on your business not in your business Systems are the name of the game How long will your business work without you?

E-MYTH

InnovationQuantificationOrchestration

INSANITY:

DOING THE SAME THING IN THE SAME WAY AND EXPECTING A DIFFERENT RESULT.

CONCLUSION:

WHY SHOULD I CARE?

WHY ARE YOU IN BUSINESS?

Because you like being awake at night?

Because you enjoy working with dirt?

Because you like green ankles?

WHY ARE YOU IN BUSINESS?

To provide for yourself, your family and your employees.

YOU NEED TO LEAD.

It is not fair to you, your family or your employees for you to operate your business at less than its capacity.

“LEAD, FOLLOW OR GET OUT OF THE WAY.”

-LEE IACOCCA