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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