Job Costing and How to Use Your Labor Effectively

Job costing is an incredibly important and often overlooked aspect of running a profitable home performance business. Too many management teams neglect understanding where their expenses and profits are within their company and therefore can’t make effective changes or effectively plan the sustainability of their enterprise. Understanding your business starts with understanding where your income is derived; with each and every job. In this session we will present two methods of job costing and explore the usefulness of each. We will cover standard gross margin costing, which works well to show overall material and labor costs and gives insights especially when materials are a profit center as well as labor. We will also explore per hour job costing, which gives greater insight into how much profit each employee creates on a per job basis. You can buy more materials, but you can’t just “Buy” skilled labor! Given the tight labor market, job profitability is often better protected by measuring the effectiveness of your skilled labor.  We’ll explore both methods and help you find insight into your business. We think this session information can help both struggling and profitable companies become more agile and competitive while protecting their profits.