Junk Removal
Ive been using Jobber for a few weeks already now and the interface is amazing and makes everything so simple. What’s one way you guys mark up some jobs to secure more money on each job?
Forum Discussion
4 Replies
Glad to hear you like the new interface!
We mark-up all labor 50%, materials 50% and any waste/disposal 50%.
Home service pro Tom Reber shared that aiming for a 50% gross profit margin is a solid way to stay ahead. He breaks it down in this article.
Are you asking a pricing question (“How do you price your jobs”?) or a Jobber question on how to quote and use the mark up features effectively?
Figure out how much your labor cost is for the job and your direct cost to get the job done (materials or fees). Take those numbers and add them together and double it.
Example:
Lead $25 per hour + Helper $20 per hour = $45 per hour
$45 per hour x 1.30 labor burden = $58.50 per hour labor cost (labor burden: cost per hour for worker to include payroll taxes, insurance, etc.)
$58.50 per hour labor cost x 2 = $117 hourly rate
Dump fees $100 x 2 = Company dump fee charge $200
With this info a job that takes you 2 hours to complete your customer would be charged $434.
You would need to watch your numbers regularly but this would put you somewhere around a 50% profit margin depending on your overhead.
You can also make more money by using Jobber's optional line items and using that for upsells.
Hope this helps. Definitely consult with you CPA to see if you are charging enough. Like others have said, definitely aim for 50% profit margins or better.
