TCF978: Job Costing for Profit and Success

Jan 4, 2025

Dive into the transformative world of job costing and discover how it can boost your contracting business. Learn about common pitfalls like labor overages and the importance of real-time monitoring to stay on track. Explore strategies for managing unexpected expenses while aiming for a robust gross profit margin. Uncover the significance of accurate estimates and effective communication with vendors to enhance profitability. Lastly, hear valuable lessons from both successes and failures that will equip you for long-term growth.

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Intro

00:00 • 3min

Maximizing Profitability Through Ongoing Job Costing

03:20 • 4min

Understanding Job Costing: Lessons from Success and Failure

06:59 • 2min

Navigating Job Costing: The Importance of Accurate Estimates

08:54 • 3min

The Importance of Job Costing and Vendor Communication

11:59 • 4min

In this episode, Tim and Derek dive deep into the essential practice of job costing. They break down how accurate job costing can transform your contracting business by identifying inefficiencies, maximizing profitability, and fostering accountability among your team. With actionable tips and real-life examples, they provide a comprehensive guide to tracking and analyzing your project costs for long-term success.

In this episode, they discuss:

The fundamentals of job costing: what it is, why it matters, and how to implement it effectively in your business.
Common pitfalls in job costing, such as labor overages and untracked materials, and how to avoid them.
The importance of monitoring jobs in real time and how ongoing job costing can help you course-correct during a project.
Strategies for handling unexpected expenses and leveraging upsells to offset losses.
Why aiming for a 50% gross profit margin should be your baseline—and how to push beyond that for greater success.
The role of communication with vendors and clients in ensuring accurate billing and reducing inefficiencies.
How tracking historical data from past jobs can improve future estimates and pricing strategies.

Resources:

⭐️ Grab our NEW course to grow your business. 5 Steps to 5 Stars : How to charge premium prices and never run out of leads - https://thecontractorfight.com/5-stars

💰 You didn’t become a contractor to struggle financially. Download our worksheet and start calculating a 50% gross profit on every job. It’s time to get your shit together! https://thecontractorfight.com/50/

💸 Grab your copy of our FREE Contractors Guide to Spotting Cheap Prospects here: https://thecontractorfight.com/cheap

💪 Get on the podcast! - https://thecontractorfight.com/intervention

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Mentioned in this episode:

Be on the Contractor Intervention! - https://thecontractorfight.com/intervention