Page 11 - Management Report Matrix Guide

ABOUT THIS REPORT
P&L by Job or project also helps you with pricing. It looks at the performance of each job, allowing you to see the detail expense line items per job.
By adding a % of Total Income column you can compare one job to another and see the outliers that will help you figure out where to drill down on your pricing.
If the profit margins on the P&L by Job report are lower than expected, this report lets you drill down into each project to dig into why. Then you can develop a strategy to improve performance.
Studying the job profitability report can expose weaknesses in your overall pricing strategy. Analyze this report to see which activities (service items) cost more than you expect and adjust your pricing for those items. By adjusting pricing upward and lowering expenses you’ll get immediate improvements to the bottom line.
ACTIONS TO TAKE
» Look at the Gross Profit % and Net Income % for the project - Did the project fall short of your expectations? How does it compare with the benchmarks in your industry?
» Look at your Labor Costs as a Percentage of Income. - Did you estimate the project correctly? Were you managing your subcontracted labor effectively? Did you account for commissions in your pricing structure?
Every manager who does pricing should track actual project Gross Profit Margins. And the lowest 15% margin clients need to be fired or repriced.
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