Where Profit Leaks—and How to Plug It

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The four ways to affect your bottom line—and why “just sell more” isn’t a strategy.

Story: Frank was busy, clients were happy, but profit lagged. The audit showed pricing and billable capacity—not volume—were the culprits.

Key Takeaways

• There are only two ways to affect profit: increase revenue or decrease cost. Each has two paths → 4 total levers.
• If staff are “billable,” set clear billable targets
• Shift non-revenue tasks off billable staff—or right-size the team.
• Charge correctly for labor (fully burdened cost + proper margin) because labor is your highest risk.
• Look for production efficiency before you assume a sales problem.

Try This This Week

1. Audit each role’s billable % vs. target.
2. Recalculate fully burdened labor cost and bill rates/markup.
3. Identify 2–3 non-billable tasks to reassign or eliminate.

Resources Mentioned

• Labor Cost & Bill Rate Calculator (with step-by-step) –  https://suiterbusinessbuilders.com/labor-cost-calculator/

Resources:

• Want to increase your profitability? Grab my book “The Profit Bleed.“
• Looking to grow your construction business? Check out our exclusive group "The Contractors Collective.”
• Want employees to take more ownership? Check out our course - “Build Your Dream Team.”
• Are you struggling to hire the right people? Check out our “Contractors Hiring Blueprint” course.

Connect with Vicki on social media:

• YouTube: Vicki Suiter
• LinkedIn: https://www.linkedin.com/in/vickisuiter
• Facebook: https://www.facebook.com/SuiterBusinessBuilders

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