One Tiny Bit Of Knowledge High Profit Contractors
Use To Get Well Over 100% Return On Investment
They Provide Snacks And Beverages for their field workers and office staff. What you say? It costs money! How is spending money going to make me money? Perhaps you think I am crazy! Read though and pay special heed to the three Profit Enhancement Strategies near the end.
Let's Take A Look At A Typical Construction Worker Named John
The Previous Evening when John arrived home he was tired, hungry and grouchy. The first thing John did was start an argument with his spouse by saying:
"Where's My Dinner Dammit?!!"
The Following Morning John's spouse left for her work early and intentionally did not fix John a hearty breakfast. John was a bit upset and angry as he drove to the jobsite and to compound the problem he stopped for a cup of strong coffee which only made him more agitated.
If John Is Hungry His body will not have enough nutrition to convert to energy which means he will produce at less than 100% capacity and he will cost your contracting company money by being inefficient and ineffective with his labor, your material and he will cause your warranty work and other costs to spiral out of control. This does not take into account the NEGATIVE IMPACT John will have on your other workers, your customers and you which will decrease your construction company cash flow and profits!
If John Is Not Hungry He body will have enough nutrition to convert to energy and he will produce at 100% capacity and he will make more money for your contracting company by being efficient and effective with his labor, your material and he will help control your warranty work and other costs. This does not take into account the POSITIVE IMPACT John will have on your other workers, your customers and you which will increase your cash flow and profits!If John Wastes Thirty Minutes A Day And you pay him $25.00 an hour that means with all of the employment taxes and overhead he costs you roughly $35.64 an hour. Which means you lost you lost $17.82 on what can be measured. What cannot be measured; bad attitude disease, rework, warranty repairs, excess wear and tear on tools and equipment, etcetera is equal or greater than $17.82
For Employee #01 Could Cost The Company $1,544.42 Each Year
At 10% Profit You Need $15,544.20 More Sales To Maintain Profit Margin
After A Couple Hours Of intense construction work John gets dehydrated and having burned a number of calories, he could be getting important messages from his stomach asking for FOOD AND WATER NOW! This could cause John to slow down which will cost your construction company some serious profit dollars.
Lunch Time And John didn't pack a lunch because he wants to "work through lunch" and leave early. If you observe John's behavior closely just after 02:00 PM you will see the metabolism dance right out of his body. And you will see first-hand how edgy, grouchy and uncomfortable he gets while his body conserves energy.
From 02:00 PM Until Quitting Time Is the worst and most costly hours for you, your contracting company because this is prime time for when construction works screw something up, get careless, get hurt and require medical attention, and invite OSHA and a variety of insurance investigations. If you are lucky the only thing that will occur is John's afternoon production will be roughly 80% of his morning production.
Let's Run The Numbers To See What The Profit Or Loss Looks Like
Without Snacks And Beverages:
With Snacks And Beverages:
Profit Enhancement Strategy #01 - Get a large cooler and assign someone to stop by the grocery store or convenience store and pick up two bags of crushed or cubed ice and a selection of single serving ice teas, bottled water, juices and other beverages and possibly some energy bars and related snacks. Investment per construction worker will be roughly $5.00 +/-
Profit Enhancement Strategy #02 - If you really wanted to increase profits consider having lunch delivered to the job site every day. You could alternate between Pizza, Sandwiches, Chicken, Tacos and whatever else makes sense to you.
Profit Enhancement Strategy #03 Provide some healthy snacks, fresh fruit like grapes, fresh berries, energy bars, granola, muffins, milk, orange juice, fruit juice and other assorted goodies for your construction workers to take with them for the ride home and the impact on your bottom line should be more than double the investment. Now when John arrives home he will still be tired from a long day at work; however, he will be friendly, happier and gentler to his spouse.
Happy Wife | Happy Life A construction worker's wife, spouse or significant other has a tremenous impact on your construction company cash flow and profitability because they have the power too influence the construction worker to stay and produce more work or leave and go to work for your competitor.
We Did This in All Of Our Construction Companies - For over 20 years and it ALWAYS generated more profits than it cost. In our case, a lot more than a measly 100% Return on Investment.
Our Contractor Clients - That are doing this show a substantial Return on Investment. We know it is true because we provide all of their contractors bookkeeping services needs.
This Estimate Shows - The profits that could be slipping through your fingers and you didn't even know it. "Profits Are Made In The Office, Not In The Field" - Randal DeHart
The Same Scenario Applies To Office Staff - Which is covered in great detail here: http://www.fasteasyaccounting.com/ten-minutes-can-kill-your-company-profits/
When You Come- To my office and start complaining about how much you are paying more in income tax since working with us than you used to earn in a year that makes me very happy!
Because That Means - You are no longer struggling to make ends meet; rather, you are building a financial estate that will provide passive income to support you when you retire.
Growing Profits By The Inch - Is a cinch works great because we did it for years in our construction businesses and we do it now in our accounting office.
We Remove Contractor's Unique Paperwork Frustrations
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.
This Is One More Example of how Fast Easy Accounting is helping construction company owners all across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to people like you so stop missing out! Call Sharie 206-361-3950 or email@example.com and schedule your no charge one-hour consultation.
Profitable Contractors and Construction Company owners have known about the value of outsourced bookkeeping services and contractor coaching services like ours for a long time and now you know about it too!
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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. 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. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+