The Number of Jobs Completed in the Month and Value per Job
This is a simple KPI to track in any trade business, and it allows you to identify an average value for the jobs completed by the business in the month, as a total number. Tracking the number of jobs completed monthly and the average value of these jobs tells a lot about your business, starting with your customers. So how do we track this?
Tune in as Connor Holliday from Elements Advisory Group takes tradie business owners through the second KPI trade business should be tracking to improve business performance.
Did you see the first video in the series? Discover the first KPI trade business owners should be tracking – Revenue Per Tech Per Day. Watch the first video here.
In the previous video, we talked about the first KPI for trade businesses: revenue per tech per day. This time, we’re going to talk about the second most important KPI you should be measuring which is…
The number of jobs completed in the month and the value per job.
This is a simple KPI to track in any trade business, and it allows you to identify an average value for the jobs completed by the business in the month, as a total number.
Simple right?
We take the total revenue earned in the month from the labour and materials, divide that by how many jobs were completed in the month, and that will give us the average value per job.
So why do we track this?
Why track this KPI?
Tracking the number of jobs completed monthly and the average value of these jobs tells a lot about your business, starting with your customers.
What’s the average typical budget for each customer?
What are the most common types of jobs you are doing for customers?
Are there a lot of smaller jobs coming through based on the average job value, and what does that say about the perception of service we offer and the types of customers we are attracting?
You also learn more about pricing when looking at this KPI:
- Are you overpricing?
- Are your prices too low?
- Are you completing larger value jobs that are more profitable but take more time to complete?
- If you increased your pricing, do you see a drop in revenue? Or do you have fewer customers but still maintain incremental revenue growth each month?
It’s important to look at this KPI (a simple one to track) alongside other KPIs in your trade business, to ensure the jobs you are doing are profitable, your pricing is on point, and you’re completing jobs for your ideal customers with an ideal budget.
Catch me again in the next video where I’ll discuss the next important KPI for tradies – Lead generation and lead conversion.
Of course, we’re here to assist you in tracking and analysing important KPIs in your trade business. Reach out to me or anyone in the team by emailing admin@elementsag.com.au or calling 07 3878 9181.
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