Last Word: Benchmark

  • Cutting Costs

    By now your 2009 budget should be nearly complete — how does it look? Are you making the money you, as owner, need to make?

     
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    Small Changes in Sales and Expenses Lead to Big Boost in Profit

    Incremental adjustments in critical financial benchmarks are less disruptive than drastic changes — and often more effective.

     
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    Budgeting for Profit

    Don’t wait for profit to happen — start planning for it now.

     
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    Simple Benchmarks in a Tight Market

    I know, you know, he knows, she knows, we know, they know: The market is tough! The remodeling industry has been flying high for quite a few years, but according to most economic forecasters, the current “dip” could last for a couple more years.

     
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    Tracking Labor Costs

    Over the years I’ve asked clients and colleagues how they estimate labor costs. The answer is usually the same: They define one number that represents hourly labor costs, including burden, and apply it throughout their estimates, no matter who does the work or what the tasks are.

     
  • Tracking Job Costs

    Job costs — all of the expenses for materials, subcontractors, and labor — are the primary components of gross profit.

     
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    Sizing Up the Big50

    In 2007, the first full year of the housing downturn that continues to put a drag on the economy, many remodeling companies had a rough time. Not so, however, for most members of the Big50 Class of 2008. While those around them were experiencing revenue slides of 25% or more, most of this year's...

     
  • Discussing profit and tracking your income

    My favorite definition for “net” comes from Dictionary.com.

     
  • Overhead Keeps the Business Running, Even When There's No Business

    Variety can be a good thing, but remodeling companies that want to measure their performance against standards need to be on the same page.

     
  • Labor Pains

    Tracking direct costs looks easy, but labor presents some sticking points. What, for instance, is to be done with labor costs for a production manager who spends part of each day on more than one jobsite?