Summer is usually the busiest time of year for contractors. Crews are working long hours, the jobs keep rolling in, and the heat is brutal. But now that the dust is settling, here is the question that really matters: did you make any money?
It is easy to assume that if your crew stayed busy all summer, then you must have done well. But being busy and being profitable are not the same thing. A lot of contractors reach the end of summer and realize that they worked their tails off but their bank account has not grown.
So how do you know for sure if you made money this summer?
Step 1: Compare Your Bids to Actual Costs
Go back to the jobs you bid earlier in the summer. Look at what you thought the job would cost, then compare it to what it really cost you. Did you come close, or were you way off?
Step 2: Check Labor Costs
Summer heat often slows crews down. If a job took 20 percent longer than you planned, that extra payroll comes straight out of your profit. If you did not track labor hours carefully, you may have lost money without even realizing it.
Step 3: Factor in Material Price Changes
This summer, did materials cost more than you expected? Lumber, concrete, fuel, and steel can change quickly. If you are not adjusting your bids to reflect current prices, you are leaving money on the table.
Step 4: Stop Guessing, Start Tracking
The truth is, if you are not using some kind of system to track bids and job costs in real time, you will always be guessing. You will not know if you are profitable until months later, and by then it is too late to fix.
That is why contractors are turning to software like ProfitDig. You can build bids, track costs as the job happens, and know if you are making money right now.
Summer is over. The jobs you already finished are in the books. The important thing now is to take a hard look at what worked and what did not, so you can make sure fall projects are more profitable.