Working with thousands of roofers over the years, our team at Jobba Trade Technologies has identified three great metrics that can be very helpful to your roofing business.
Not only can they help management to focus their attention on what matters most, they can also help to identify areas or processes that may need improvement. The bottom line – we’re all in business to make money, which is why knowing your numbers is so vital.
1. Monthly Close Rate % by Salesperson
How are your sales people performing? And, how do they compare with each other? It’s important to keep an eye on which of your sales people are performing best. You can pass along their expertise and strategies to others on your sales team that 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 you have consumed 250, so you have used 25% of your budgeted labor thus far. And, 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 metrics is just one of the many ways we enable them to better manage their business.