How Contractors Leak $183,000 in Profit Every Year
Most contractors think they need more leads.
They don’t.
They need to stop wasting the opportunities already coming into the business.
In this episode, Tom breaks down how an $800,000 contractor could be leaking more than $183,000 in gross profit every year without seeing a single expense on the P&L.
The money disappears through four common sales leaks:
• The Gate: Failing to qualify leads before wasting time on an estimate
• The Meeting: Showing up, measuring and quoting without running a proven sales process
• The Money: Discounting because the price conversation gets uncomfortable
• The Follow-Up: Sending a proposal and hoping the customer eventually responds
Using a $12,000 average job, a 30% close rate and a 40% gross profit margin, Tom shows how small improvements could produce:
• 84 hours of owner or estimator time recovered through better qualification
• $52,800 in additional gross profit from improving the close rate by five points
• $20,400 kept by eliminating unnecessary discounts
• Approximately $110,000 in additional gross profit from a structured follow-up process
You don’t need more water poured into a leaking bucket.
Fix the bucket first.
In this episode:
• The five steps of the Shin-Fu qualification process
• Why 80% of the sale happens during the motive conversation
• The seven-part structure of a strong sales meeting
• How discounting comes directly off your bottom line
• The five-touch follow-up sequence every contractor should use
• Why profit is the scoreboard
• How to find the biggest leak in your sales process
Find your biggest sales leak with the free Sales Leak Scorecard:
https://thecontractorfight.com/leak
Stop guessing. Find the leak. Fix the leak. Command your sales.
