Working with thousands of roofers over the years, our team at Jobba Trade Technologies has identified three great roofing business metrics that can be very helpful to your roofing business.
Business metrics specifically tailored to your business operations, in this case, roofing can be a valuable tool for managing and growing your roofing company. They provide insights, help you set and achieve goals, and empower you to make informed decisions that can lead to improved performance and profitability. By incorporating metrics into your business operations, you can work smarter, not harder, and increase your chances of long-term success in the competitive roofing industry.
The bottom line is that you are in the business to make money, which is why knowing your numbers is so vital. Here are 3 roofing business metrics to incorporate into your business.
1. Monthly Close Rate % by Salesperson
How are your salespeople performing? How do they compare with each other? It’s important to keep an eye on which of your salespeople are performing best. You can share their expertise and strategies with others on your sales team who may need help or training to improve their own close rates.
FORMULA: [# of Customers Sold this Month by Salesperson A] / [# of Leads Given this Month to Salesperson A] = Close Rate %
EXAMPLE: 10 Customers / 100 Leads = 10% Close Rate
2. Daily Projected Labor Spend %
How profitable do you project a job to be by the time it’s complete? By staying on top of how much labor you are on track to spend each day, you’ll have a clear picture of the job’s profitability at completion. It can also tell you how accurate your team’s estimations are.
FORMULA: ([% of Labor Used] / [% of Job Completed]) x 100 = Projected Labor Spend %
EXAMPLE: Job A has 1,000 total budgeted labor hours and consumed 250, so you have used 25% of your budgeted labor thus far. At the end of that day, Job A is 30% complete based on the work area that your foremen have completed.
(25% Labor Used / 30% Job Completed) x 100 = 83% Projected Labor Spend
Anything under 100% means you’re right on target. Anything over 100% means you will overspend.
3. Average # of Days in your Customer Pay Cycle
How long does it take you to invoice a job and get paid for it? Knowing this number has the potential to help you manage your cash flow much more efficiently and encourage your team to work on getting those invoices out faster!
FORMULA: [Total of All Job’s Days in Pay Cycle] / [Total Number of Jobs] = Average # of Days
EXAMPLE: 2,000 Days Total / 100 Jobs Total = 20 Day Average (from Job Invoiced to Job Paid)
For roofers using Jobba Trade Technologies’ software, the ability to easily report on various roofing business metrics is just one of the many ways we enable them to manage their business better. Jobba offers integrated Microsoft Power BI visual reporting & data analytics tools to make more informed decisions while assessing your overall business health using comprehensive, color-coded charts and graphics.
Interested in learning more about Jobba? Watch our 5-minute Demo Video! This video will show you what Jobba is and how customizable it can be. Additionally, you will get a tour of the user-friendly dashboard and see sample reports!
Want to see how Jobba can help you easily view and understand your roofing business metrics? Fill out the form below to schedule a demo!