Profit - 9 Margin Levers

9 Margin Levers


Pricing

  • Overhead recovery margin
  • Project Management (Preliminary and General)
  • Mark up vs Margin
  • Software vs spreadsheet vs pen & paper

Positioning

  • What type of work are targeting
  • Type of clients
  • Authority in your marketplace as opposed to Generalist
  • Referrals & WOM


Sales

  • 7 step sales process
  • Involvement steps (wow pack)
  • Presentation of quote
  • Charge for quote
  • Nurture and warm
  • Site visit
  • Qualify and position w scripts

 


Marketing

  • What pools are you fishing in
  • 3 main avenues: Digital / Referral / Social
  • 8 Marketing Pillars
  • Authority positioning & attracting people who aren’t price or time sensitive 


Controlling Labour 

  • Labour tracking (apps/time sheets)
  • Foreman task list  / scorecard
  • Biggest variable cost
  • Breaking the jobs down by stage


Controlling Materials

  • Quality control checklist
  • Scheduling


Controlling Subcontractors

  • Subbie handover form
  • Price checking (Brent saved 40k on a project)


Variations / Change Orders

  • Variations checklist
  • Variations sign off form
  • Variations scripts
  • Contract clauses
  • High Mark up on these


Contracts 

  • Merchant rates and dates 
  • Don’t be the bank
  • Don’t absorb retentions 
  • Make sure you’re allowing for price rises 


Complete and Continue