4 Secrets To Extreme Profits In Your Lawn Care Business — Revenue Tracking 1

Do you know which customers make you the most revenue?

When you know who your most profitable customers are, you can make your other customers profitable as well.

This post is the third post in our series “4 Secrets To Extreme Profit”.  You can go back and check out “The Perfect Customer” and “Motivation” if you’re the type to read things in order.

If not it’s fine, there are no judgments here.

3rd Secret To Extreme Profit — Revenue Tracking

You need to include some factors when you start revenue tracking to figure out which customer pays you the most per hour.

  • how many man hours the property takes to work on
  • how many people are traveling and working and for how long
  • how much you are paid for the work
  • how much extra wear and tear on your machines or materials cost you should take into account at that property

Man Hours

Determining your man hours is basically breaking down how much money you want to make for doing a job, and the time you have per person to hit that goal. We have some great infographics to walk you through the man-hour rating process.

The easy way to know what your man hour rating is with each of your customers is to just track it in CLIPitc.

CLIP has a series of reports that can tell you your man hour rating for each customer and even highlight which ones make you the amount of money you want to earn each man-hour, and which ones don’t.

When you have your employees track their times in the CLIPitc app or through a route sheet that you input into CLIP, it’s pretty easy to find out which customers make you the most revenue.

Materials Cost

You need to be tracking and knowing exactly how much materials you have used on the customer’s property and bill them for that separately.  If you haven’t separated your material costs from your labor costs on your jobs yet, you are likely losing a little bit here and there, and that could be affecting your bottom line.

It’s always nice to get a massive check from a customer. The problem is, sometimes those dollar signs can cloud your vision, and you forget all about the truckload of mulch and couple dozen pavers you used to get their job done. Factoring in these extra costs, that check doesn’t look as good anymore, and that customer might be your least profitable one.

How Does Revenue Tracking help?

The question becomes; “How could knowing who my best customer is affect my revenue?”

When you know who your best customers are, you can look at the properties and figure out why. Is it because the travel time is down? Is it because the property doesn’t have trees to mow around? It could be many different reasons, but if you know which one you can bid your future customers better based on them.

It also tells you something essential — which customers you do NOT want to lose! That means that when you want to send a letter out raising your prices, you better ignore the best customers or you may lose them. Send out the letter to your customers that barely make you enough, if you lose them, you can just replace them.

Know who your highest revenue producing customers are so you can make all your customers give you extreme profit!