EP 22 - Margin and Markup - Know your numbers
Today we talk about the subject that is often overlooked. Markup and Margin. Knowing your numbers. This is about as critical a business topic as you can think.
The restoration industry is plagued by this idea that restoration companies are just being greedy when they bill for O&P (Overhead and Profit). That is usually driven by the opposing party, the carrier. We are here to tell you that it is absolutely essential for the health and wellbeing of your company. You MUST cover your O&P if you expect to build a business that you can accomplish your goals with.
We highlight a book called Markup and Profit (A Contractors Guide) by Micheal Stone. Get the book here. It will change the way you look at your business!
We also chat about some other books that are front of mind for us this week. Toby talks about The Power of Who by Bob Beaudine. Klarks love for music drove him to get the book by the infamous David Grohl titled The Storyteller - Tales of Life and Music. Both have takeaways that you can implement TODAY. Check them out!
Thanks to our sponsor Kahi. Kahi provides an incredible service of hardware and software that help you and your team make more profit by tracking and maximizing the use of your assets. This automated system has some incredibly efficient and powerful tools for your equipment, fleet, and even personnel.
As part of the O&P conversation and some of the talking points from the book Markup and Profit, the conversation obviously ties in Xactimate. We did a mini-course titled “The Truth about Xactimate”. Everyone needs to see what this course uncovers that is hiding in plain sight. We provide some resources within the course that you can provide to adjusters that will help you get your overhead and profit justified. Follow this link for that workshop Truth about Xactimate Pricing
We also have a robust Document Packet that will help you with properly onboarding your client, documenting your work, providing your client and workers with a safe working environment, and so much more. https://www.restorationadvisers.com/restoration_documents
We hope these assets and training help. If you are looking to make running your restoration company simpler, better, and more profitable, contact us for a call to learn more about what your goals are!
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