Learn about job costing, contract comparison, and other reports in CLIPxe that tell you where you are making money, and where you are losing money.
Inspect What You Expect
In part one of this webinar, we talked about how to measure success. Using reports in CLIP can help you determine things, such as what’s working or needs fixing.
Setting goals for your company is important, however, you have to follow up to ensure you’re still on track.
In today’s webinar, we discuss using reports like job costing and contract comparison. These reports will help you make smart decisions to help improve your company’s profits.
Knowing Who Your Best Customers Are
Understanding which jobs are most profitable can help you make better decisions about customers in the future. Is it better for you to add more lawn maintenance or landscaping? Is residential better compared to commercial?
You can use the job cost report in CLIP to help you make these decisions.
CLIP allows you to customize this report in several ways. For example, you can run it by crew, by customer, job numbers, or even date ranges. There are many more options to help personalize your report in addition to the ones listed here.
The job cost report can also help you when you’re considering raising prices.
For example, telling a customer you’re not making good profit on that you’ll have to raise prices is a risk. They might try and find a new vendor, but you might be okay with that if you’re losing money on them.
Comparatively, a customer you’re making an above average profit on is too valuable to upset. Making an across-the-board price increase is never a good idea.
Variations On the Job Cost Report
CLIP allows you to post your job costing report to a map. This allows you to see which areas are working the best for you. Conversely, you can dig in and figure out why other geographical areas need improvement.
Another variation is a job cost versus actual cost reporting. This report takes into account the expenses of labor and equipment, thus giving you more gross profit per hour.
If you’re wanting a true gross profit per hour, you’ll have to add in other fixed overhead costs that aren’t included in CLIP like office work.
Using Multiple Reports To Determine Needs
Efficiency is key to keeping profit margins correct. Using the actual versus budget man hour report can help you see which customers you’ve under estimated in your budget.
Comparing this knowledge with the job cost report can help you narrow down on why some customers aren’t making the profit margin that you’re aiming for.
Using all of the great reports that CLIP makes available to you can help you ensure you’re company stays on track to make it’s goals. Your company won’t get there without the correct guidance and planning. Remember the phrase “garbage in, garbage out“. Reporting is only as accurate as the information you put in.