Originally Posted by ksss
What Scag says is true. However if your existing customers and the way your doing business is getting you around a 3rd of a mil and you want to get to half a mil, then you need to make changes. It seems like everyone tends grade themselves and others by gross money. I think gains have to be made on both ends, working more effeciently and gaining larger work. Most of us have a limited number of days to make our money and limited amount of qualified help by which to get the work done. So you have to go after the jobs that bring in the most money for the time and resources spent, but you also have to work efficiently.
The jobs that bring in the most money for me are the medium sized commercial projects and the high end home excavation market. I think having some niche work helps fill the gaps between those commecial jobs which are bid competetively and thinking outside of the box on how to do all types of work better helps with the bottom line. After all you can make 500K and work sloppy or gross 300K have less stress and put more money in your pocket by working smarter and more efficiently.
I also am continuely trying to increase my work load, but also trying to find the quality work. There are some types of work that we do more effeciently than anyone else in my area. There are also some types of work that we dont do as efficiently as others. I think its important for everyone to seriously evaluate where your strengths and weaknesses lie. We struggle with ductle iron, and some of the larger underground projects. I simply dont have the people with a strong backround in this type of work. So its hard for me to be competetive in these areas. I will if possible sub these portions out to those that excell in these areas, but its harder to be competetive, I have to cut somewhere else that I excell at.
Very Very well put! I tired many years in my younger, earlier days to chase big gross numbers, with alot of trucks and guys. It always seemed the more I grossed the less I actually took home and my stress level was insane. I run 5 guys including myself, gross a decent amount, a workable stress level and take home more than I ever have. You have to find the things that makes you money(profit), not the things that just turn dollars...