What's your plan for your business in 2026?
We are a residential cleaning company. I am wondering what are you tracking other than of course your revenue and net profit. Some of our KPI's include: Number of visits Number of reoccuring jo...
Forum Discussion
Hey Judy! I hope you're doing well. Productivity per Gross Profit is such an important metric but nobody is tracking it when they're job costing. Here's what I mean when looking at 2 different jobs:
Job #1 revenue: $1,000
Job costs (materials, labor) $400 (40%)
Gross Profit $600 (60%)
Job #2 revenue $1,000
Job costs (materials, labor) $700 (70%)
Gross Profit $300
Which one is better?
To answer that, you have to know how long they took!
Job #1 took 2 guys 4 hours each
Job #2 took 1 guy 2 hours
Job #1 Gross Profit Hourly Productivity: $600 / 8 man hours = $75/hr
Job #2 Gross Profit Hourly Productivity: $300 / 2 man hours = $150/hr ✅ (double the first job!)
It's easy to think higher revenue, higher gross profit is always best but it's not always the case. Some jobs have really high material cost but it's a really fast/quick job. Let's try to get more of those!
Job costing is the only way to get these numbers.
Hourly Productivity per Gross Profit ✅
I hope this is helpful.
Yes absolutely we have this all worked out.
