ou work too hard to let your profits
be lost to mistakes, inaccuracies and neglect. Here are common "profit leaks
" that contractors forget.
If your gut tells you it will be a problem project, don't take it. Your experience and intuition mean a lot. If the project seems risky or if the customer seems flaky, go somewhere else. Know what makes a "green light customer" - the ones who seek your professional advice, don't ask for price cuts, and who pay on time. When a customer doesn't fit, don't take on a loser.
Stop doing work for free. Avoid being the "nice guy" who forgets to write down and bill for all of the extras you do for clients. Those extra trips to the site, change orders and freebies add up to additional hours and costs for materials that can really be a drag on your bottom line.
Fix quality problems that cause call-backs. Track warranty calls and causes so you can address field mistakes that lead to warranty work. Costly problems repeat when workers lack training or cut corners. Track down and eliminate root causes.