Why should you track sold days vs. dollars? Because it is a strong leading indicator. Leading indicators provide early signals of positive or negative future revenue trends, as opposed to waiting for long-term results. Why else should we track sold days?
Because tracking dollars alone will lie to you. Let me show you what I mean.
You’ve got Job #1 for $4000 and Job #2 for $4000. Now are these two jobs the same?
You sure might think so if you’re looking at the dollars. Now, what if we add in material costs for $2000 and $1500 respectively? How do these jobs look now?
As you can see, tracking dollars alone will lie to you because you will not get the full picture to make sound business decisions.
When looking at sold days, you also need to factor in your overhead and your profit. If you don’t do these two things, how do you know what your break even is?
Nexstar Network members have the option to use Nexstar’s Profit Pricer, an easy-to-use Excel based tool that helps calculate your break even and subsequently, your profitable pricing levels. In using this tool, members can determine their sold day goals for the week, the month and even the year. Sharing these goals with your staff keeps your team motivated and on the same page. Remember, make selling the day, your priority.