I was working my arse off and always behind on paying suppliers and doing about 60 hours on the tools each week. We crunched our numbers and worked out that our profit margin was about 17% and now we’ve gone up to about 36% average. We’re pricing properly, I check my hourly rate, and profit margin is right before I put the job through. All the changes are making us an extra 10k gross profit per month!
“We’d been in business for nearly 40 years and while things had gone OK I knew that we could do better. I was working big hours and always tied to the phone. Plus we wanted to set the business up for our retirement so we could sell or continue to get an income from the business. Profitable Tradie helped massively to increase our margins by 12% meaning we are now making $10,000 to $15,000 more profit each month – simply by learning to price and back cost our work properly. Plus we’ve systemised the business and taken on more staff which means we’re on track for our succession plan. In the first 4 months on the Million Dollar Plumber program I learnt more about our numbers than in the previous 40 years in business!”
“Before joining the program we were the classic plumbing business. We had 10 odd tradesmen and an office team but we were running around busy, hectic and not really sure whether we were making money. We’ve now got our numbers sorted out and our margins and profits are improving massively. Our labour utilisation was killing us at around 70% and now we’re hitting around 90%. We’ve also got our website, ad words and No Cow Boys up an running. We are getting around 60 leads a month and 30 to 35 jobs. I’m still amazed at how well it all works.”
“Before I met tony I was working 80 hour weeks and only returning a 17% gross profit margin. I’ve been on board now for 6 months and in that time we’ve increased our profit margins to 35% which has given me and extra $117,231. We’ve hired 2 guys and just have a lot more time off the tools”