Post on 05-Jan-2016
description
REVENUE TRACKINGDAVE & DAVE CLIP SOFTWARE
REVENUE TRACKINGKnowing what jobs produce the most.
What are you selling?Time and ExpertiseSystems EquipmentLabor
WHAT ARE YOUR LIMITS?Man hours TimeProduction Employees Times hours available.8 employees, 40 hours, 45 weeks (mowing season) = 14,400 hours
What is the most important thing you can learn about your customers?
Not very exciting, but necessary.Total company gross sales:$400,000Total production hours 14,400Dollars per hour $27.77Total profit - $28,000 (7%)Business Cost=Sales-Profit = $372,000
Which is the better job?ABC ShoppingPrice - $100.00 per service
Or
XYZ ShoppingPrice - $50.00 per service
ABC Shopping 5.26 hours
XYZ Shopping 1.39 hours
How much time does it take?ABC Shopping 5.2 hours$100.00/5.26 = $19.01 per hour
XYZ Shopping 1.39 hours$50/1.39 = $35.97 per hourFormula is (Price of the job)/(Time Spent) = Dollars we earned per hour
Assuming my costs to be the same per hour:If all my jobs were like ABC, my gross sales would be:$19.01 times 14,400 hours = $273,744Business cost of $372,000Loss of $-98,256
Assuming my costs to be the same per hour:If all my jobs were like XYZ, my gross sales would be:$35.97 times 14,400 hours = $575,568Or $575,568(Sales)-372,000(BC)=$203,568 in Profit or 35%
How can you do revenue tracking?You have to track every dollar on every job for a significant period of time.
You have to say No to non-profitable jobs.
Which would you want? $-98,256 loss
Or
$ 203,568.00 profit
How can you do revenue tracking?You have to track travel time and make sure that it is part of the dollar per hour equation.
An Example of Job Costing in CLIPxeMaryland InstituteGeorge Cress
What happens if I raise all my Prices?Do I make more money?Why not?
Does it really work?Company I knowLowest dollars per man hour $44.99$600,000 Gross sales38% profit after owner salary
What would you rather have?5% of $2,000,000 company ($100K)Or38% of a $600,000 company ($223,000)
CLIP2GO
CLIP2GOCollect the information at the jobDownload into the home system when done.
CLIP2GO
Toy or Tool?Reduces data entry timeIncreases accuracy
Will it increase my profits?
YOUR BUSINESS:A PRODUCT(A money making machine)
E-MYTHMichael Gerber - The E-MythYour business is your productWork on your business not in your businessSystems are the name of the gameHow long will your business work without you?
E-MYTHInnovationQuantificationOrchestration
INSANITY:
DOING THE SAME THING IN THE SAME WAY AND EXPECTING A DIFFERENT RESULT.
CONCLUSION:
WHY SHOULD I CARE?
WHY ARE YOU IN BUSINESS?Because you like being awake at night?Because you enjoy working with dirt?Because you like green ankles?
WHY ARE YOU IN BUSINESS?To provide for yourself, your family and your employees.
YOU NEED TO LEAD.It is not fair to you, your family or your employees for you to operate your business at less than its capacity.
LEAD, FOLLOW OR GET OUT OF THE WAY.
-LEE IACOCCA
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