– Cost of Goods Sold
= GROSS PROFIT
Gross Profit is what is left after you’ve paid your Cost of Goods Sold (COGS).
Those Gross Profit Dollars then pay for your Overhead Expenses
And what’s left is your Net Profit
Watch your Gross Profit on each job closely!
What were you EXPECTING to make in Gross Profit?
What did you ACTUALLY make in Gross Profit?
If you made more than what you were expecting – you have Grippage (yeah!)
If you made less than what you were expecting – you have Slippage (boo!)
If you’re not watching this closely…
You’re, most likely, giving up $423 here and $517 there and $267 over there of Gross Profit Dollars.
That all starts to add up to $1000’s and $10000’s+ in slippage over the course of the year.
What I’ve seen by studying the financials of, at this point, 100’s of remodelers over the years,
Is what I’m talking about here is usually the difference between
A meager 3-4% Net Profit vs. a healthy 8-10%
Watch your Gross Profit on each job closely
And start making more money in your remodeling business.
Reply back if you have any questions,