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welcome back to callahan’s corner where
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you ask the questions we have some live
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right here on facebook so i had a
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question submitted in one of the
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facebook groups today and i wanted to
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grab this
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uh on the way um out today
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to touch base on when you should check
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your budget versus actual time
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and the question uh is very uh i guess
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prominent in
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a lot of the facebook groups of when you
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should be checking that stuff
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and in my company we would check that
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daily uh the gentleman who posted the
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question wanted to know
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if he was accurate looking at it on a
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yearly basis but
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if you wait to a yearly basis it’s too
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late so what i’m recommending is
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every service whether it’s lawn mowing
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home cleaning pest control
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should have a budgeted time that
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includes
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non-billable mobilization in your
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overhead recovery model
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so you’re not going out to your crews
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and saying well if you’re 80
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or better it’s okay they’re going to
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resonate better with
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a budgeted timing hitting 100 over under
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time
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so what we want to do is track the
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budget first axle for your mowing or
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home cleaning on a daily basis so at the
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end of the day
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or the next morning before the crews get
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out and we want to post that publicly
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for accountability with a quality
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control standard
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now the second part of the question was
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submitted was should i
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raise my prices based on this absolutely
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now uh any time you get new accounts you
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may
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over under bid those but we do want to
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get a statistical mean or an
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average so i recommend that we do a
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job costing report in july and at the
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end of the season end of november
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december
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and those are going to be over say 15 or
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20 visits
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on the particular service such as lawn
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mowing where the question was based
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and then if they’re not hitting our
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hourly goal that financial threshold we
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would raise the price
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uh up to that threshold so if you’ve
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seen any of the videos where we show you
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the
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job costing report through the kpi
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package
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that simple growth does we’re able to go
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down and literally
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raise the price in the example 2.56 per
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visit to hit a hourly goal of say 60
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per man hour so as you’re looking at to
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answer the question to really get into
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is you want to be able to track the
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daily wins and losses on average across
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all the jobs you’re doing in part out
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publicly and then that’s going to show
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you if you’re making money
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on average across all the jobs for the
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day or week and then twice a year we
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want to go out and run a job
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costing report on each specific customer
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and we can raise the losers up and you
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may wonder why
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why would you select july or the
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beginning of july usually right after
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that fourth of july weekend with the
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holiday
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is that’s going to give you enough
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average there
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to base the numbers on and you’ve gotten
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out of this the wet
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slow part of the spring and in addition
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uh if we’ve got a new account and we did
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botch the estimate for some reason and
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we’re losing money there’s no need to go
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out for another 15 to 20 weeks
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and continue to service that profit at a
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net loss let’s raise that price up and
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get it up to the profit area
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or let’s politely disengage them through
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a two-week period
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um if we can’t get them to that
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threshold and we’re going to be honest
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about it we’re going to do in a
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professional manner so
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uh answer the question is then we want
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to go in we check daily versus budgeted
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times daily
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and job costing twice a week so
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hopefully to answer the questions
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callahan’s corner you ask the questions
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we answer them live
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right here on facebook