Why Are Add On Sales Are So Profitable?
Because You Have Already Paid For
The Marketing And Mobilization Costs
Marketing Costs - Are what is cost your company to acquire and maintain the job. Depending on how you allocate marketing dollars as a percentage of sales or fixed budget will have an impact on your marketing cost per job. Your cost-per-call, closing ratio and other related information is all part of your operations, accounting and bookkeeping reports.
Mobilization Costs - Are the costs you incurred to get a crew to the jobsite in terms of travel time and vehicle operating costs and then the labor costs to unload tools, equipment and material and put everything in places for easy access and not in the way of the work to be done. These costs are generally high and fixed.
Demobilization Costs - Are the reverse and generally lower because it takes less time to load the truck or van since you know where everything goes and you know the quickest route back to the shop or office. These costs are also generally high and fixed.
Add Those Costs Together - And you will understand the value of staying on each job and solving all of your customer or client construction and maintenance issues is so much more profitable than windshield time.
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Some Contractors - Prefer not to offer add on sales, change orders, additional work orders whatever you call them because they feel it is a disservice to their clients and if it makes you uncomfortable don't do it.
Other Contractors - See it as an opportunity to properly service their customers and clients because they understand the value of service.
Grease Monkey Franchise - At 1300 N 175th St, Shoreline, WA 98133, (206) 542-4957 are masters of the fine art of the add on sale because they have serviced our business and personal vehicles since shortly after they opened their doors and we love them!
Gentle Add On Sales - Is the key at Grease Monkey. They will suggest replacing air filters, wiper blades and other minor parts only if they are needed. A simple yes or no and they are back servicing your vehicle.
Most People - Have a little bit of fear of contractors because some of them have become a little bit gruff and almost Un-Bear-Able trying to earn a decent paycheck and profit.
Your Customers And Clients - Are depending on you to give them good advice and help them protect their real estate investments.
I Cannot Begin - To tell you the number of times people have come up to me at social and networking events to relate stories about how they did everything but get on hands and knees and beg their contractor to do a little extra work while they were already there. When I asked if they expected it for free all of said no, they expected and were willing to pay extra.
You Can Choose - To provide add on sales and services for your customers and reap bountiful profits or wait until your customer calls one of my contractor clients who are learning how to grow a profitable and successful business and they will take your customers off your hands and turn them into high profit clients.
Better Yet You - Become our client and we can teach you how to earn more money than you are now and open your eyes to things you never dreamed were possible!
Profitable Construction - Companies have known about the value of outsourced bookkeeping services for a long time and now you know about it too!
For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies. Click Here For More.
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About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist and Bill.Com Certified Guru. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Follow Randal on Google+
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