# Man hours

```REVENUE TRACKING
REVENUE TRACKING
Knowing what jobs produce the most.
What is the only Un-renewable
resource in the world?
Time
Once it is gone
you can never
get it back...
What are you selling?
Time and Expertise
• Systems
• Equipment
• Labor
Man hours – Time
Production Employees Times hours available.
8 employees, 40 hours, 45 weeks (mowing season) =
14,400 hours
What is the most important thing you
Who pays me the most per hour.
(Who is the most valuable customer?)
Not very exciting, but necessary.
Total company gross sales:
 \$400,000
 Total production hours – 14,400
 Dollars per hour – \$27.77
 Total profit - \$28,000 (7%)
Which is the better job?
ABC Shopping
Price - \$100.00 per service
Or
XYZ Shopping
Price - \$50.00 per service
How much time does it take?
ABC Shopping – 5.26 hours
XYZ Shopping – 1.39 hours
How much time does it take?
Formula is (Price of the job)/(Time Spent)
= Dollars we earned per hour
ABC Shopping – 5.2 hours
 \$100.00/5.26 = \$19.01 per hour
XYZ Shopping – 1.39 hours
 \$50/1.39 = \$35.97 per hour
Assuming my costs to be the same per hour:
If all my jobs were like ABC, my gross sales would be:
 \$19.01 times 14,400 hours = \$273,744
 Loss of
\$-98,256
Assuming my costs to be the same per
hour:
If all my jobs were like XYZ, my gross sales would be:
 \$35.97 times 14,400 hours = \$575,568
 Or \$575,568(Sales)-372,000(BC)
 =\$203,568 in Profit or 35%
How can you do revenue
tracking?
You have to track every dollar on every job for a
significant period of time.
You have to say “No” to non-profitable jobs.
Which would you want?
\$-98,256 loss
Or
\$ 203,568.00 profit
How can you do revenue tracking?
You have to track travel time and
make sure that it is part of the
“dollar per hour” equation.
An Example of Job Costing in CLIPxe
Maryland Institute
George Cress
What happens if I raise all my Prices?
Do I make more money?
Why not?
Does it really work?
Company I know
 Lowest dollars per man hour – \$44.99
 \$600,000 Gross sales
 38% profit after owner salary
What would you rather have?
5% of \$2,000,000 company (\$100K)
 Or
38% of a \$600,000 company (\$223,000)
CLIP2GO
CLIP2GO
Collect the information at the job
when done.
CLIP2GO
Toy or Tool?
Reduces data entry time
Increases accuracy
Will it increase my profits?
A PRODUCT
(A money making machine)
E-MYTH
Michael Gerber - The E-Myth




Systems are the name of the game
E-MYTH
Innovation
Quantification
Orchestration
INSANITY:
DOING THE SAME THING IN THE
SAME WAY AND EXPECTING A
DIFFERENT RESULT.
CONCLUSION:
WHY SHOULD I
CARE?
WHY ARE YOU IN
Because you like being awake at night?
Because you enjoy
working with dirt?
Because you like
green ankles?
WHY ARE YOU IN