How to Measure Profit on Masonry Jobs
Maintaining financial record of a business is a simple task, but if there is no planning and projection on costs and revenues, things often go awry. When it comes to running a masonry business, one of the most important things is measuring profit that you earn by giving services to your clients.
Since masonry job or business entails several tasks, costs, and other factors that play their role in quality and timeline, it is better to measure profitability by using computer software. Assessing profitability in masonry work requires a high degree of accuracy, and it can get more complex when clients ask for additional work. Measuring costs and expenses accurately is the key to assessing profitability in masonry business.
Instructions
-
1
Determine costs of service
Determining cost of service is the key step to assessing profits of your business. Costs of a project or service can be categorized, as different categories will help to reach an accurate calculation. Make a list of costs that are incurred during preparation and completion of a service/project.
Cost measurement can typically start from recording costs of material used on project, transportation, insurance charges, communication needed to carry out the project, salaries of admin staff and workers (on field), equipment that are purchased to carry out a specific project, taxes, and miscellaneous expenses incurred during the project.
If you are having trouble creating a list from scratch, you can have a look at masonry resources and managerial accounting software. Construction business software can also help you record different costs associated with masonry work. -
2
Pricing service the right way
Pricing your service realistically is the most important factor in measuring profits the right way. You should know how much your clients should pay that you can reap good profits after subtracting all your costs from money you receive at the completion of the project.
Another good way to price your service is to see how much your competitors charge for their services. Still, you cannot get to know a realistic price of a project, but you can get a rough idea of prices in the industry. -
3
Control costs
Keep an eye on shifts in costs. Since prices of transportation and equipment (used in masonry work) keep fluctuating due to economic condition and other factors, you must be prepared to make real time adjustments.
If you had determined cost of transportation of a certain project, it is not necessary that the costs will remain the same a year later. Compare costs and come up with the one that gives you more financial benefit.
