You could be losing $60,000 or more in annual profits without even realizing it.
If you're like most contractors, you're probably nodding your head that you are working too hard and keeping too little. You have most likely mastered the basics of managing your costs, but here's the shocking truth: there's a whole array of hidden costs silently destroying your bottom line. Labor [Link to Top 3 reasons your estimates are leaking profit] is the biggest profit leak we see with most of our clients, but there are many others.
Let's expose these profit-killers and show you how to protect your business.
The Project Management Money Pit
Here's a startling reality check: If your project manager works 40 hours per week, all 40 of those Hours need to be accounted for in your estimate. Are you selling all the Labor Inventory you are buying?
Are you capturing these critical costs?
- Weekly supervision hours
- Pre-construction planning
- Job development meetings
- Punch list completion
- Client communication time
FACT: Most contractors we work with are losing thousands by treating these as overhead rather than direct job costs.
Your Equipment Is Costing You More Than You Think
Pop quiz: Do you own a dump trailer, paint sprayer, or other equipment?
If you answered yes, here's your game-changing tip: Call a rental company right now and get their daily, weekly, and monthly rates. Use these as your baseline for charging equipment costs to jobs.
Why is this crucial? Because when (not if) your equipment breaks down and you need a rental replacement, that cost shouldn't vaporize your profits.
Weather and Location: The Hidden Profit-Killers
Let's get real about productivity factors:
- Pacific Northwest contractors: Are you budgeting for snow removal?
- Seattle/Portland builders: What about spring mud slowing your crews?
- Remote jobs: A two-hour drive means four hours of non-productive paid time daily
These aren't overhead costs – they're direct job costs that deserve a place in your estimate.
The Administrative Time Black Hole
You're leaving money on the table if you're not charging for:
- Change order processing
- Material procurement
- Invoice processing
- Documentation time
- Client meetings
SHOCKING STAT: These unbilled hours can account for up to 3% of your revenue – that's $60,000 annually on $2 million in revenue!
Your Game-Changing Next Step
Ready to stop these profit leaks once and for all? The Aspire Institute has helped thousands of contractors transform their businesses.
But don't just take our word for it. Our clients consistently report:
- Increased profit margins
- Better project management
- Improved cash flow
- Sustainable growth
Want to discover ALL the profit leaks in your construction business? Don't let another dollar slip through the cracks. Click here to reserve your spot now!
Remember: Every dollar you save through proper estimating goes straight to your bottom line. Isn't it time you stopped leaving money on the table?
Learn more about avoiding these profit killers at one of our upcoming local Aspire Institute one-day workshops, or set up a consultation to speak to one of our construction business experts. Contact Us.