Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services
0025: Contractors Add On Sales Increases Cash Flow And Profits
Why Are Add On Sales So Profitable? Because You Have Already Incurred Marketing And Mobilization Costs
Marketing Costs - Are what is cost your company to acquire and maintain the job. Depending on how you allocate marketing dollars as a percentage of sales or fixed budget will have an impact on your marketing cost per job. Your cost-per-call, closing ratio and other related information is all part of your operations, accounting and contractor bookkeeping reports.
Mobilization Costs - Are the costs you incurred to get a crew to the jobsite in terms of travel time and vehicle operating costs and then the labor costs to unload tools, equipment and material and put everything in places for easy access and not in the way of the work to be done. These costs are generally high and fixed.
Demobilization Costs - Are the reverse and generally lower because it takes less time to load the truck or van since you know where everything goes and you know the quickest route back to the shop or office. These costs are also generally high and fixed.
Add Those Costs Together - And you will understand the value of staying on each job and solving all of your customer or client construction and maintenance issues is so much more profitable than windshield time.
Need Help Now? Call Sharie 206-361-3950 sharie@fasteasyaccounting.comThis is one more example of how Fast Easy Accounting is helping construction company owners just like you 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 construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
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