Million Dollar Tradie Number ers s Works kshop 1 16/06/2016 - - PDF document

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Dec 09, 2022 424 likes •835 views

16/06/2016 Million Dollar Tradie Number ers s Works kshop 1 16/06/2016 The e Problem blem 2 16/06/2016 The e Op Oppo portunity tunity 3 16/06/2016 4 16/06/2016 5 16/06/2016 The Million Dollar Tradie System For a Profitable,

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Million Dollar Tradie

Number ers s Works kshop

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The e Problem blem

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The e Op Oppo portunity tunity

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The Million Dollar Tradie System For a Profitable, Scalable and Systemised Trade Business

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Most Tradies judge performance based on

MONEY IN THE BANK...

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Success ssful l Tradies ies wear r 4 hats in relatio tion to the finances es...

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5. Money Consciousness…

Results Actions Decisions

Behaviour Skills Beliefs Values Identity Environment

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SALES LESS COST OF GOODS SOLD Opening Stock $10,000 Opening WIP $10,000 Wages (on the tools) $19,500 Materials $39,000 Sub Contractors $14,700 Less closing stock $10,000 Less Closing WIP $10,000 GROSS PROFIT LESS FIXED COSTS Bank fees $135 ACC Levies $756 Marketing $778 Power $502 Phone $810 Repairs & Maintenance $2,965 Fuel $1,779 Road user chargers $375 Accounting $850 Insurance $711 Rent $1,800 Interest $917 Stationery $386 Office Wages $6,696 Salaries $7,200 Subscriptions $321 General Expenses $1,023 NET PROFIT (PRE-TAX)

Direct Costs (include your wages if you are on the tools) Fixed Costs (overheads / indirect costs) Include a market salary for yourself if you’re off the tools $73,200 $122,000

Profit and Loss Statement for July 2014

$28, 004 $20, 796 $48,800

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What hat is Gros

ss Prof
fit?.

it?...

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Gross Margin =

Gross Profit x 100 Sales Eg: $ 48,800 x 100 $122,000 = 40%

What t is Net Prof

fit?.

it?...

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16/06/2016 17 Net Margin = Net Profit x 100 Sales Eg. $ 20,796 x 100 $122,000 = 17%

15% – 20%

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Why is my Gros

ss Prof
fit

it Margin in so Up and Down.. wn...?

SALES $122,000 LESS COST OF GOODS SOLD Opening Stock $10,000 Opening WIP $10,000 Wages (on the tools) $19,500 $19,500 Materials $58,000 $58,000 Subcontractors $14,700 $14,700 Less Closing Stock $10,000 Less Closing WIP $29,000 $92,200 $73,200 Gross Profit $29,800 $48,800 Gross Margin $24.4% 40%

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Break Even = Fixed Costs Gross Profit Margin

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Eg. = $420, 000 40% = $1,050,000 per year

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Mater eria ials ls 35% Subbies es 2.7% Labou

ur 22.3

.3%

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Measures Your Businesses “Vital - Signs”…

Planning for Profit / Sales Budget Set your Target From Profit Loss Statement (XERO, MYOB) From Trade Management Software ( e.g. Simpro/ Fergus) From Enquiry Sheets Jobs / Leads Sales / Jobs From Accounting System (XERO, MYOB) Productive Hours / Hours Paid

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16/06/2016 26 $10,000 000

(Cost st of Sale les s – Labour, Mater eria ials, s, Subbie ies) s)

$13,000

Quote / Charge Up (Sale Price) Sale Price – Cost of Sales = Gross Profit

Gross Profit = $3,000

Mark Up = (Gross Profit / Cost of Sales) = (3,000 / 10,000) x 100 = 30% Gross Margin = (Gross Profit / Sales) = (3,000 / 13,000) x 100 = 23%

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Price for a Target Gross Margin…

Maintenance Jobs 55% plus… Build lding ing and Re Renovatio ations ns 35% - 45%… Large Projects and Commercial @30%… Count Quantities… Back Costing… Margin not just Dollars… Cost Stages… The Right Software Helps… Learn for next time…

Labour John … 30.5 hours @ $28 Nick… 20 hours @ $21 Jacob… 8 hours @16.50 Materials - Plumbing World Invoice #1 … $1602.49 Invoice #2 … $638.49 Invoice #3 … $14.54 Sales - $5,476 (excl. GST)

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Charge Up… Options for Pricing… Quote (Each time)… Fixture Rate… Set Price… Work Hard Once… Why Set Pricing… Less Arguments From Clients… Buy Back 10-15 Hours Per Week… Conversion & Margins…

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80/20 Rule… Making Set Pricing Work… Review Previous Jobs… Materials & Labour Required… Price For Worst Case… Back Cost…Back Cost…Back Cost… Creat ate a Set Price ce For a M Mains ns Pressure ure HWC in a new House Build… Getting Started…

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Estimate Hours… Calculate Price… Check Your Margin… Profit Boosting Strategies… Review Rates Regularly… Hourly Rate… Minimum Charge… Consumables… High Rates For Specialist Work…

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Review Rates Regularly… Rates for Apprentices… Set Pricing / Quoted Work… Increase Material / Subbie Mark up… Higher Service Fee / Minimum Charge… Improve Team Combinations…

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50 Way ays to Mak ake an Extra a $500 Per Week…?

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