What It's About:
The average remodeler or small custom builder will experience 6% margin loss to theoretical gross margin. This session explores how margin can be correctly calculated and planned for—taking your knowledge from theory to practical application. Topics include: budgeting for slippage, how discounting derails profit plans, how hiring affects net profit and how growth can be bad for you. Review simple margin-to-markup math and discuss opportunities for using this math to predict and protect profits. See real-world examples of how your business is affected when overhead, volume, hiring, growing and falling short are looked at in monetary terms. You’ll leave with proven techniques, including spreadsheets and worksheets, for making margins a priority in your business strategy and not just an afterthought once construction has begun.
What You'll Learn:
Obtain a deep understanding of real-world margin calculations and their application to factors such as slippage, moving from field to office, the effects of discounting and more.
Understand the effects of decisions, such as growing volume quickly and hiring additional people to fuel the growth, and how margin knowledge makes profit projections more accurate.
Learn the math behind discounting to achieve sales goals and their effect on produced profits earned.
Gain access to a discounting sheet you can use immediately, as well as a labor burden spreadsheet to identify the true cost of new hires.
How to Attend:
Participants must be registered for a full registration package or a 1-day education with expo pass package valid for the day of the session they wish to attend. Seating for Building Knowledge sessions will be on a first-come, first-served basis.
NAHB - 1.50 CE hour(s), NKBA - 0.1 CEU(s)