It’s not because they’re not working hard, rather it is because they’re not tracking the right numbers.
Our research and benchmarking in the industry shows there is big difference in gross profit margins (GPM) between average performers and high achievers. Just for example, in the design/build sector, the high performers achieve a GPM of 60 percent compared to the average of 47 percent.
A large driver of GPM is ‘gross profit per hour’ (GPPH), the amount of gross profit earned per labor hour on the job. We have found that by focusing on GPPH, businesses can gain a clearer understanding of their operational efficiency and better targeting during the sales process, thus making informed decisions to enhance profitability.
For those interested in a deeper exploration of these concepts, Jeffrey Scott and Mitch Katz are hosting a free webinar this Thursday, Feb. 13, titled “The Two Secrets to a Profitable Year.” This session will delve into maximizing profits, revenue and accountability using both billable hours and GPPH. Scott, along with Katz, will guide participants through these concepts and their implementation within a company.
Register for Thursday’s free webinar here.
