Profit and Cash Pocket Deck
Recall the financial distinctions that keep an electrical contractor from confusing revenue, profit, and cash.
What is contribution margin on a job? Revenue minus variable job costs; the amount left to cover overhead and profit. For electrical work, variable costs include direct labor, materials, permits, rentals, and job-specific subcontracting. Recall Is this job profitable, cash-safe, or both? A healthy job needs both margin and workable timing. Compare 'Can you match the lower quote?' Use this line 'I can compare scope and adjust price if we change scope, timing, or terms. I do not want to cut the parts that keep the job safe and inspected.' A naked discount often comes out of overhead recovery or…
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