Forum Discussion

AnthonySalazar's avatar
AnthonySalazar
Jobber Ambassador
9 days ago

How do you stay profitable when your schedule is fully booked?

Early on, I thought the goal was simple: fill the schedule.

More customers = more money.

But I hit a point where my days were completely packed—15+ stops, driving all over my service area—and I still felt like I wasn’t getting ahead. Long days, constant movement, but nothing to show for it at the end of the month.

So I finally broke it down.

I looked at:

  • Time per yard (from the moment I parked to when I left for the next house, not just scooping)
  • Average yards per hour
  • $ per minute - (if I was in someone's yard for 10 minutes and I charged them $20, I made $2 a minute)
  • Labor cost per hour (real cost, not just hourly wage. I had to treat myself as an employee if I was ever going to hire someone)

What I realized was brutal:
Some of my “full” days were actually my least profitable days.

Too much windshield time.
Underpriced customers locked into old rates.
Routes that made no sense geographically.

Fixing that didn’t come from adding more leads.
It came from:

  • Raising prices on the right customers
  • Letting go of the wrong ones
  • Tightening routes so stops actually made sense together

That shift did more for profit than any marketing I had done up to that point.

Question:

If you had to guess right now... what’s hurting your profitability more:

  1. Pricing
  2. Route inefficiency
  3. Labor cost
  4. Something else

And what makes you say that?

2 Replies

  • Conrad's avatar
    Conrad
    Contributor 4

    Spot on. It's so easy to think you're making money if you're busy - but unfortunately there's plenty of operators who are flat out busy with not much to show for it... (been there, done that!!)

    Back costing isn't talked about nearly enough - the Jobber profitability % is an awesome tool that really lets you keep a finger on the pulse of your business. Instant feedback as soon as a visit is completed. Once you start using this, digging deeper into back costing and working out your most profitable types of jobs ($/hr gross profit) you can make some smart decisions and really drive the business forward.

    I kind of bundle route efficiency in with labour utilisation - back costing your different job categories including solo vs 2 person teams is a real eye opener as well. I think a lot of us have a "feeling" about what's happening in our business, but when you actually look at data it changes your perspective. Numbers are the language of business after all. 

    We know that solo crews are WAY more profitable, we're working our way back to that - just in the midst of stabilising our team after some big changes earlier in the year.

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      One thing I really took to heart in the last year as my business continued to grow and I onboarded more employees was looking at the data and seeing what the numbers are telling me. Now I have one employee who's underperforming compared to the rest of the Team and it's nerve wracking to think about having those hard conversations. I literally already told them "I can't afford you with how slow you are" lol