Case Study – Home Remodeler
We worked with a construction company, and after a few months, we noticed their bank account never grew, even though they saw an increase in sales.
We decided to dig into it a little and found they were profitable in most jobs, but occasionally, they would have a job that not only lost money but knocked out all the profits they had gained from the other jobs.
When we dug into it a little further, we found that they were consistent in estimating the labor costs but were all over the place in estimating their material costs.
This led to a change in the commission structure with the sales team and a push to make sure sales were also offering a manageable number of discounts on the materials involved.