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Dialing in the profitability of your maintenance program

In an industry where average profit margins are around 6%, understanding your revenue and expenses at a detailed level is critical. 

A few missed details could be the difference between making or losing money, a mistake that only compounds itself in a maintenance program due to the recurring nature of the work. You might be sending a crew out to a job site every week, and actually losing money each time.

SingleOps helps our customers running landscape maintenance programs take specific steps to better understand their true profitability. 

Step 1- Nail down your job costing inputs

Any expense not entered into job costing has no accountability. Job costing in SingleOps allows you to easily track your labor, equipment, and materials that go into the cost of a job. 

Learn how to nail down down your job costing units by watching this webinar

Step 2- Ensure your costs are accurately entered into all maintenance programs

Once you have dialed in all of the job costing units, you need to be able to accurately enter them into all of your maintenance programs. This will ensure that you bid on all of your work at a price point to make your desired profit. Listen to our podcast episode where Jeffrey Scott discusses how to determine your profit margin goals.

Step 3- Understand your fully burdened labor rate, and never bid below it

In Season 1 of our podcast, Joe Langton shares how his business bids on work and the importance of understanding your fully burdened labor rate can affect how you bid on work. Listen to Joe explain here.    

Step 4- Take a step back, examine profitability, and make the necessary adjustments

Maybe some jobs are simply money-losers with your current cost structure. Can you cut costs, or increase the price? Think about truly innovative steps you could take to change your strategy in a way that changes the cost structure. Such as Joe Langton with the automated mowers.

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