How Understanding Gross Profit Changed My Business
For a long time, I thought I was doing everything right. Work was coming in, the crew stayed busy, and the revenue numbers looked solid. But every month I was stressed about money and I couldn't figure out why. It wasn't until I really sat down and looked at my numbers that things started to click. I came across Tom Reber's work, and it completely changed the way I thought about pricing. The biggest thing I took from it was understanding gross profit — not just revenue, not just what a job "feels like" it's worth, but what's actually left after you pay for labor and materials. Once I understood that number, I realized I had been leaving a lot of money on the table for years. What I Learned Gross profit is the money left from a job after you cover your direct costs — labor and materials. That number has to be healthy enough to cover everything else it takes to run your business: your truck, insurance, tools, software, your time. If your margin is too thin, all of that comes out of your pocket and you never get ahead. For me, setting a clear gross profit goal on every job was the turning point. It gave me something to price toward instead of just guessing and hoping it worked out. What Changed I stopped pricing jobs to win them and started pricing them to actually make money on them. Some bids I lost. But the ones I won started feeling worth it. Cash flow got easier. I could actually see where the money was going — and more importantly, where it was staying. It wasn't an overnight fix, but getting honest about my numbers was the first step to building a business that felt sustainable instead of just busy. If you've been in that same spot — working hard, staying booked, but still wondering where the money went — start by looking at your gross profit on every job. It might surprise you.
Do you know your actual effective hourly rate per client — once travel time is included?
Hi everyone — I'm a developer, not a cleaning business owner, so I'll be upfront about that. I'm doing early research before building anything. I've been spending time in this community and something keeps catching my eye. There are a lot of conversations about pricing, undercharging, and knowing your numbers — but the specific gap I keep noticing is this: Jobber shows you revenue per job, but it doesn't tell you your real effective hourly rate per client once you factor in drive time and how long a job actually ran versus what you quoted. For a residential cleaning business with recurring clients, that seems like it could matter a lot. The client who pays $200 but takes 45 minutes to drive to might look identical in Jobber to a client who pays $180 and is 5 minutes away. My question, specifically for cleaning business owners using Jobber: is this actually a problem you run into? Are you tracking profitability per client in any way right now — spreadsheet, gut feel, something else? And if you're not tracking it, is that because it's genuinely not a priority, or because there's no easy way to do it inside Jobber? Not selling anything — I haven't built anything yet. I'd genuinely love to have a 15-minute conversation with a few people who manage recurring residential clients in Jobber. Happy to share what I learn with anyone who's interested. Drop a comment or DM me.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: Pricing Route inefficiency Labor cost Something else And what makes you say that?
How do cleaning businesses automatically track job costing and profit margins for recurring clients?
Hi all! In our cleaning business we have a lot of recurring clients with lots of visits for the same job. 85% is recurring and 15% one off jobs. however, the reporting options for job costing and profit margins for recurring jobs are not as good as the one off jobs. there are integrations that will pull live data from jobber and push into google sheets for example - but only using the triggers “job closed” or “job updated”. As most of our jobs never close, we are looking for a visit-based data pull that functions automatically. I have a google sheets dashboard with metrics based on the visits report, but requires Manual data pull daily to track performance. any suggestions? cheers!
How do contractors price jobs based on actual business costs instead of competitor rates?
We run a contracting business in Juneau, Alaska. It’s a remote town with no roads in or out, so our market does not work like most places. Lead generation is not our problem. The work is there. Our bigger challenge is filtering demand, choosing the right jobs, and pricing from the actual cost of running the business instead of just asking, “what does everyone else charge?” That has changed how we look at pricing. Two companies can do the same job with completely different numbers behind it: equipment payments, fuel, insurance, payroll, repairs, debt, admin time, material costs, disposal, taxes, and risk. Competitor pricing matters, but only to a point. If our cost structure is different, their price can’t be our whole pricing strategy. We have a CPA and bookkeeper we trust, so the books are not something we’re guessing on. What we’re working on now is turning the P&L and balance sheet into real-world pricing decisions: what the equipment needs to bill, what materials need to carry, what minimums make sense, and which jobs are actually worth putting on the schedule. We’ve also been using AI to organize that information into pricing structures, quote templates, equipment rates, per-ton pricing, material pricing, and job-type frameworks. To be clear, we’re not using AI to tell us what to charge. We’re using it to organize what we already know, pressure-test assumptions, run simulations, and find holes before they show up in the bank account. The more we work through it, the more we wonder how often underpricing comes from not having a clear link between pricing and the actual cost of running the business. Curious how others think about this. When you price work, do you start with your own numbers first, the market first, or a mix of both? For those using AI, have you used it for pricing, estimating, job costing, or financial review beyond emails and marketing content?Anyone else realize they were breaking even or losing money after expenses?
I had a phase where we looked “busy” on paper, fully booked, money coming in, but when I actually broke down the numbers, some jobs were barely breaking even. Once I factored in true payroll burden (taxes, workers comp), supplies, insurance, and transaction fees, it was a wake-up call. There were jobs we were doing that felt productive day-to-day but weren’t contributing to profit at all. For us, it came down to tightening up pricing, being more intentional about which jobs we accepted, and really understanding our numbers on a per-job basis (not just overall revenue). Curious if anyone else has gone through this and what changes made the biggest impact for you?How can home service businesses improve profit margins without raising prices?
If you had double your profit margin without raising rates, what would you cut or optimize? Our payroll all-in consistently remains at around 50%, but I was hoping to hear what others are doing considering labor is our biggest expense as home service businesses!How can I create an invoice for the deposit?
When doing certain commercial work the client will ask us to send them an invoice for the deposit. This isn't typically how Jobber works as the invoice isn't created until the job is closed usually. What is the best way to send a customer an invoice before having the quote signed, deposit paid, or the job completed? Hope that makes sense. Thanks in advance!
