Such a small percentage, but can make such a big difference:
Let's say you're top line revenue is $500,000:
- Increase your prices 1% and that's $5,000
- Improve your production and knock your COGS down by 1% that's another $5,000
Both are very doable and you have another $10,000 in Gross Profit to work with.
Let's say you're top line revenue is $1,500,000:
- Increase your prices 1% and that's $15,000
- Improve your production and knock your COGS down by 1% that's another $15,000
Both are very doable and you have another $30,000 in Gross Profit to work with.
Should you go into your estimating spreadsheet/system and increase things across the board 1%? Or maybe 3%, while you're at it... Small change, big result. Your prospect won’t blink at that and the extra revenue will help you hit your financial goals.
What if you sat down with your production team and brainstormed ways to improve and knock your COGS percentage down 1% (or more)? Do you think you could come up with some ideas?
That's all for this post. Just wanted to share this quick thought and hopefully inspire you to take this micro change that will lead to more profit for your remodeling business.
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