Listen "Where Profit Leaks—and How to Plug It"
Episode Synopsis
Let us know what you think? Send me a note!The four ways to affect your bottom line—and why “just sell more” isn’t a strategy.Story: Frank was busy, clients were happy, but profit lagged. The audit showed pricing and billable capacity—not volume—were the culprits.Key TakeawaysThere are only two ways to affect profit: increase revenue or decrease cost. Each has two paths → 4 total levers.If staff are “billable,” set clear billable targetsShift non-revenue tasks off billable staff—or right-size the team.Charge correctly for labor (fully burdened cost + proper margin) because labor is your highest risk.Look for production efficiency before you assume a sales problem.Try This This WeekAudit each role’s billable % vs. target.Recalculate fully burdened labor cost and bill rates/markup.Identify 2–3 non-billable tasks to reassign or eliminate.Resources MentionedLabor Cost & Bill Rate Calculator (with step-by-step) – https://suiterbusinessbuilders.com/labor-cost-calculator/Resources: Want to increase your profitability? Grab my book “The Profit Bleed.“ Looking to grow your construction business? Check out our exclusive group "The Contractors Collective.” Want employees to take more ownership? Check out our course - “Build Your Dream Team.” Are you struggling to hire the right people? Check out our “Contractors Hiring Blueprint” course. Connect with Vicki on social media: YouTube: Vicki Suiter LinkedIn: https://www.linkedin.com/in/vickisuiter Facebook: https://www.facebook.com/SuiterBusinessBuilders If you love listening to this podcast, please leave a review in Apple Podcasts.
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