2023 Industry Benchmarks for Pricing, Expenses and Profits
Wes from SynkedUp is back on the show! This time, we're pulling back the curtain on hardscape contractor costing and pricing data from across North America to give you some key benchmarks for your selling prices, expenses and profits. In this episode, we'll dive deep into some of the essential financial aspects of running a hardscape construction business. First, we'll discuss the average labor hours (manhour) price range for small to large companies, which will help you get an idea of how your pricing stacks up against industry leaders.Next, we'll delve into the typical profit ranges for businesses of different sizes and explore some of the commonly overlooked factors in this category. Understanding your profit margins is critical to the success of your business, and we're excited to share some valuable insights to help you optimize them.Finally, we'll wrap up with a discussion of the overhead cost ranges for different sized businesses. Wes will share some of the best ways to control these expenses in light of a leaner economy, so you can keep your costs under control and maximize your profits.
Wes Zimmerman is CEO and co-founder at SynkedUp, is a landscape management software built by contractors for contractors.
Here are some key takeaways:
- Costs are increasing, your pricing should not, but without proper visibility you may lack the confidence needed to hold your ground in a negotiation.
- While smaller ocmpanies may have lower operating costs, they don’t need to be selling for less, or accepting lower margins.
- If your company is netting single-digit profits, you may as well be working for someone else. 10% net profit should be the minimum you accept.
- Rule of thumb: 30 – 30 – 30 – 10 (labor cost – material cost – overhead – profit).
If you want to do a consultation for your budget with SynkedUp, here’s an exclusive link to our listeners:
https://synkedup.com/budget-consultation-form/
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