Put Your Daily Breakeven Numbers to Good Use

Most contractors have a daily install schedule but very few put their install $ per day on the schedule. Therefore, they don't know if they are over or under their Breakeven (B.E.). By showing the $ per day, you create the awareness of the importance of B.E.

One days Sales B.E.

This example is for a company with $80,000 Overhead (O.H.), 50% Gross and $7,600/Day B.E.

Install Schedule

You are going to lose 78% of your profit for the week on Friday. What should you do about it? Pick a recently quoted and unsold job. Call the customer and explain to them that next Friday you have nothing for one of your crews to do. You are a family business and you don't want the crew to have a day with no pay. They have car payments and house payments, as we all do. So I'm calling you to offer you a one time discount of $800 if we can schedule your job for Friday. Of course, if we can't, I will have to call the next customer on my list and give them that discount to keep from sending our crew home Friday.

Here is what happens to your weekly profit.

With this job, your sales are $9,800 for Friday. You exceed your B.E. by $2,200 at 46% G.M and you add $1,072 to your weeks profit, bringing the total to $4,212 which is 9.0% Net Profit.

If you have any questions, please do not hesitate to call me.

Thanks for all you do and as always “Expect More From Us”!

Thanks,

Bruce Martin

Dealer Business Consultant

Value Added Distributors

(757) 469-1205