The end of a project should be cause for celebration. Instead, one significant question often remains unanswered even after all those weeks of physical labour: "Did I actually make money on this job?"
We sat down over a coffee with Lachie and Mitch. With no shortage of projects under their belt, they’re currently pricing up tenders for much larger projects.
The danger of pricing in the dark
Working hard isn’t enough if you don’t know your numbers, and as Lachie, Founder & Director at Alliance Electrical, puts it, "When you're doing these jobs you're paying with your body".
If there’s no profit realised when the tools are packed away, what is the point?
Without a way to understand how the numbers are tracking, some business owners even avoid looking at their Profit & Loss in case it confirms what they already know.
“A lot of people lose time and energy just by not knowing what they’re pricing”
- Mitch, General Manager, Alliance Electrical
This lack of visibility leads to unnecessary stress throughout the year.
The answer - get confident in your numbers.
Gaining real-time confidence
Dedicated and integrated estimating tools, such as Groundplan & Fergus, enable any trade business to estimate from plans and tender from the outset accurately.
“Now we can put out ten tenders instead of three”
- Lachie, Founder & Director, Alliance Electrical
As the job progresses through its lifecycle, understanding where losses might occur and where profits can be made becomes much easier, allowing for a more restful night's sleep.
While you may be losing a little on materials, you can make up for it over there on labour. It shows you fully trust your own process.
“I mentioned to one guy about using something like Fergus. He didn’t want to use it because he didn’t want to know”
- Lachie
When you have momentum, and the numbers are right in front of you, you can see exactly where you are winning and actual numbers, so you can see how to tweak your strategy accordingly.
"By using Groundplan and Fergus, it gives you the confidence to know your process and to know where you're winning"
- Mitch
This visibility is crucial for day-to-day operations rather than waiting until it's too late to react.
Staying calm when things go sideways
No job is perfect, and things inevitably get missed. When you have your margins broken down at least into labour and materials, you gain the flexibility to adjust on the fly. If you lose a little on materials but come in under on labour costs, you can balance the scales without panic.
“I’m terrible at keeping a diary, so to have it all in front of me is a huge load off”
- Lachie
This real-time insight prevents you from having to go back to the customer to request a variation. It keeps your margin in a good position and keeps the client happy.
Thankyou to Alliance Electrical
We'd like to thank Lachie & Mitch for their time, and we'll be keeping in touch to watch as they progress and land those big tenders.
Good luck fellas.
Visit: Alliance Electrical.
