Many aspects of your flooring business combine together to either increase or decrease your profits. When you have proper budgeting, job costing, and regularly run sales analysis, you can see flaws that cause profit leakage.
What is profit Leakage?
Profit leakage is when an inefficiency, flaw, or mistake culminates in a job netting your business less profit than it should. Profit leakage is easy to find when you run a sales analysis! The main question you’ll be asking is how does the profit I expected from this job compare to the actual profit I received.
How Do I Find Profit Leaks?
When you run your sales analysis you’ll be directed to the problem. For example, if you are selling flooring for a single family home, you need to know what you budgeted for when you wrote up the flooring sale for that home. Then you need to take a look at your ultimate result for that particular sale. The discrepancies should direct you to any problems that are causing profit leaks.
What Areas Of My Business Could Be The Problem?
Running one sales analysis isn’t going to show you the whole picture of your business. But, when you look regularly at all the jobs you finish you’ll be able to start getting a better idea of what needs work. Ask yourself, do these less profitable jobs all involve a particular sales rep? Do certain customers regularly make last minute changes that cause a delay? Does one installation team take longer than others for similar jobs?
RollMaster Flooring Software helps our clients find problems with their potential profit in two big ways! Our analytics tool makes it easy to track a job as it progresses. With Data Visualization, you’ll be able to see quickly and easily how your business is performing so you can make decisions.
We also have an awesome team of consultants that can help you dig into problems! Our consultants and Virtual CFOs are highly skilled and know the unique challenges of the flooring industry. This helps them to see problems clearly and help you solve them as quickly as possible.
Fixing profit leakage allows you to grow your bottom line! But there is even more that RollMaster can do for your business. Ready to get more out of RollMaster Flooring Software? Get in touch and find out how we can optimize your business!← Blog