Contractor Podcast Roundup - Sept 11: 3 Moves to Add Profit This Week

Top 3 to Implement This Week:

• Fix the hidden profit leak: Audit your P&L against job‑costing to expose revenue you’re not capturing—this week’s case uncovered a 20% gap. Next: line up last month’s jobs and reconcile totals before you price the next estimate.

• Kill untracked ad spend: Build a single lead‑source tracker and make every campaign traceable—a roofing shop cut $20,000 in dead channels once the data was visible. Next: tag every ad with UTMs and review the tracker weekly.

• Turn denials into wins: Only appraise the right files, then stack a retail/finance offer—one team went 39–1 against State Farm using this filter. Next: pre‑qualify for obvious/discontinued‑shingle damage before you touch paperwork.

URGENT: Stop the Hidden 20% Revenue Leak (P&L vs Job‑Costing)

Why now (≤60 words): A market‑leading contractor looked healthy on the P&L but bled profit at the job level. A simple P&L‑to‑job‑costing comparison exposed 20% of revenue going untracked, plus entire services priced below cost. They raised prices on losers—even after shedding some customers, profit surged.

What to do this week (3–7 steps):

1. Export the last 90 days of closed jobs (job numbers, revenue, labor, materials, subs, gross margin).

2. Map each line to your P&L categories; flag any revenue appearing on P&L but not in job files (and vice versa).

3. For every service line, compute average gross margin and variance by crew/estimator.

4. Back‑test prices on unprofitable lines; model a 10–25% increase and forecast margin impact.

5. Pilot the new prices on 10 quotes; require a job‑cost closeout within 72 hours of completion.

6. Publish a “stop list” of services you’ll only perform at premium or not at all.

Copy/paste asset (Checklist):

P&L ↔ Job-Costing Audit (30 minutes):
[ ] Export closed jobs (90 days): Job#, Type, Sold$, Labor$, Materials$, Subs$, Gross$
[ ] Export P&L detail for same period: Revenue accounts + COGS
[ ] VLOOKUP/Join on Job# or Date + Customer to reconcile totals
[ ] Log mismatches (Unbilled change orders, Materials not posted, Misc. income)
[ ] Rank services by Gross% and Complexity; mark D-segment (keep/raise/kill)

Proof & payoff: In this week’s case, the owner discovered a 20% revenue leak; when he implemented a ~20% price lift on losing work—even assuming a ~30% customer drop—he reported “more money this past year than the previous couple decades.” Time to value: one afternoon to find the gap, one week to pilot fixes.

Source: “3 Ways to Control Profit and STOP Confusing Your Finances” (Contractor Evolution — Spencer Sheinin; Aug 27, 2025).

IMPORTANT: Cut $20K+ Marketing Waste with a Lead‑Source Tracker

Why now (≤60 words): A roofing company built a five‑year master sheet of leads, spend, and revenue by source and immediately found $20,000 burning in outdoor and mail—gone with no effect on revenue. They then made UTMs mandatory and ran weekly KPI reviews to keep waste from creeping back.

Steps (3–7):

1. Create a master sheet with columns: Date, Campaign, UTM_Source/Medium/Content, First Touch, Last Touch, Cost, Leads, Appointments, Jobs, Revenue, CAC, ROAS.
   Formulas: CAC (per job) = Cost ÷ Jobs • ROAS = Revenue ÷ Cost

2. Standardize lead‑source names in your CRM; kill duplicates like “Facebook,” “FB,” “Meta.”

3. Require UTMs on every ad and landing‑page form; name forms by page location.

4. Run a 30‑minute weekly review on 6–8 KPIs (Leads, Book Rate, Show Rate, Close Rate, Avg Sale, CAC, ROAS, Refunds).

5. Publish a “stop/scale” list: cut zero‑return channels, shift budget to top performers.

6. Set a speed‑to‑lead SLA and script (live pickup or under‑5‑minute callback with text).

Copy/paste asset (Speed‑to‑Lead text):

“Hey {Name}—this is {Rep} with {Company}. Got your request about {service}.

I can get you on the schedule and answer quick questions now. Call or text me here.”

Proof & payoff: The shop that instituted this framework eliminated $20,000 in waste and reported a ~90% reduction in total marketing waste via weekly reviews; best sources delivered ~20× ROAS (≈2,000% ROI) once speed‑to‑lead dropped to five minutes.

Source: “Stop Wasting Money on Marketing” (Sep 3, 2025). | “Why Contractors Waste Thousands” (The Contractor Fight — Tom Reber; Sep 4, 2025).

IMPORTANT: Win Denials with Appraisals + a Retail/Finance Path

Why now (≤60 words): A young roofing firm stopped chasing every claim and started appraising only when the file met tight criteria (e.g., discontinued shingles, obvious damage). Result: a run of 39–1 on State Farm appraisals, plus bigger projects by pairing approvals with elective upgrades and consumer financing.

Steps (3–7):

1. Define green‑light criteria (discontinued SKUs, brittle tests, clear storm pattern, photo proof).

2. Pre‑qualify homeowners for appraisal in one call; disqualify fast when criteria aren’t met.

3. Build a “good‑better‑best” upgrade menu (venting, decking, insulation) separate from insurer scope.

4. Offer payment options at proposal (soft‑pull, fixed‑term); show a simple monthly figure.

5. For non‑qualifying files, run a retail quote tool and pivot to financed retail.

6. Add realtor partnerships for older roofs that stall listings; deliver fast inspection reports.

Copy/paste asset (Appraisal triage script):

“Before we proceed: your roof uses {brand/model}. Have you seen supply notices or replacements denied nearby?

We’re looking for clear indicators (e.g., discontinued or brittle). If it’s not a fit, I’ll save you time and quote retail options.”

Proof & payoff: Filtering first produced a 39–1 appraisal record; the same company turned partial approvals into full exterior projects by layering a retail/finance pathway (monthly payment language closed the gap when cash wasn’t available).

Source: Episode 44, “Surviving Roofing in a Storm Drought” (Sep 2, 2025).

Quick Wins (Do Before Next Friday)

• Shift your trades to a weekly pay rhythm: invoices in by Monday, checks cut Friday—watch your projects get priority without begging. Source: Episode 56, “Client‑First Remodeling Business” (Sep 4, 2025 — Audra Gossage).

• Lock down legal basics today: form/update your LLC, tighten written agreements, and stop using images you don’t own. Source: Episode 53, “Shatterproof Your Business” (Sep 4, 2025 — Scott Reeb).

• Pilot a compressed crew schedule (Mon–Thu, early start) on one project to reduce fatigue and boost throughput in heat. Source: Episode 58, “Data Center Construction Boom” (Sep 4, 2025 — Randy Blount).

• Book one low‑cost pop‑up (farmer’s market or local festival) and route appointments straight to your calendar—face‑to‑face converts. Source: Episode 36, “Make Marketing Leads Out of THIN AIR!” (Sep 1, 2025 — 20:18–20:47).

• In your next sales conversations, talk far less and ask better questions—let the homeowner do most of the talking. Sources: Episode 17, “#1 Rookie Mistake Sales People Make” (Aug 29, 2025). | Episode 22, “The MOST Intense Zoom Call” — 7‑second opening emphasis (Aug 29, 2025 — 07:24–07:50).

Benchmarks to Screenshot

• Pricing standard: Aim for 40% gross margin; markup floor 1.67. Owner: Estimating Lead • Cadence: Weekly bid review • Evidence: 5‑bid sample shows ≥40% GM.
  Source: Episode 59, “12 Essentials for Roofing Success” (The Roofer Coach; Sep 5, 2025).

• Cash‑flow standard: Default contract terms 50/25/25 with a card on file—no mobilization without it. Owner: Ops Manager • Cadence: Friday contract audit • Evidence: % of new jobs with terms + card ≥95%.
  Source: Episode 48, “Stop Solving the WRONG Problems” (Sep 3, 2025).

• Call‑center standard: Zero missed calls during business hours (escalate at 2/day); send a daily booked‑jobs email. Owner: CS Manager • Cadence: Daily @ 4pm • Evidence: dashboard screenshot + email posted.
  Source: Episode 43, “Why Some Businesses Stall at $5M While Others Hit $50M” (Sep 2, 2025 — Peterman Brothers).

• Finance visibility: Review a one‑page “Three Levers” chart (Sales, Gross Margin, Opex) every Monday; pick one lever to move. Owner: Controller • Cadence: Mon 9am • Evidence: chart posted to Slack.
  Source: Contractor Evolution — “3 Ways to Control Profit and STOP Confusing Your Finances” (Aug 27, 2025).

Watchlist — Market Shifts You Can Monetize

• Coatings just hit a tipping point. Roughly one‑third of manufacturers now offer coating lines, with 20‑year NDL options and renewable systems.
  Try this next: Meet your rep, shortlist substrates you see weekly, and line up two controlled pilots with property managers.
  Source: Episode 62, “Coating Market Reaches Tipping Point” (Sep 8, 2025).

• A talent wave is moving toward the trades. AI is displacing entry‑level white‑collar roles while baby‑boomer retirements open leadership seats.
  Try this next: Post an “earn‑while‑you‑learn” ad, host a shop tour, and equip recruiters to sell the path from helper to foreman.
  Source: Episode 61, “White‑Collar Displacement Creates Trade Talent Goldmine” (Sep 8, 2025).

Finish Line Checklist

Stop the Hidden 20% Revenue Leak — we’re done when…

• ▢ Last 90 days of jobs reconciled; mismatch log created and reviewed.

• ▢ Keep/Raise/Kill list published for low‑margin services.

• ▢ 10 quotes issued at new pricing; gross margin recorded for each.

Cut $20K+ Marketing Waste — we’re done when…

• ▢ One tracker shows Spend, Leads, Jobs, Revenue, CAC, ROAS by source.

• ▢ 100% of active campaigns use UTMs; forms named by page.

• ▢ ≥1 zero‑return channel paused; budget reallocated.

Win Denials with Appraisals + Retail/Finance — we’re done when…

• ▢ Appraisal criteria documented in CRM and used on every claim inquiry.

• ▢ 3 appraisal files submitted; 2 retail/finance quotes sent on non‑fits.

• ▢ ≥1 upgrade bundle sold alongside an approval.

One Last Nudge

Pick one play and get exceptional at it before adding another.

Want help implementing? We’ll pick one person who replies in the first 24 hours with a 30 minute advisory session helping to implement one of the items listed above. Just reply with the play you want help with.