Companies that treat job costing as a discipline of running their business find that this discipline becomes a competitive advantage over time. How?
Better Scope Management: Companies that treat job costing as a discipline have the tools in place to monitor their performance on a job day-to-day and week-to-week relative to their original bid. That means they can manage project scope with their customers more effectively. Better scope management means higher profits.
Better Customer Relationships: Yes, better scope management means better margins, but it also means better relationships with your customers. No customer wants to be caught off guard with a bill they aren't expecting. So the faster you can alert them about scope changes that translate to more money, the better chance you have of maintaining a positive relationship with that customer, and the more you reduce room for contention over billing. A good job costing system lets you track actual performance relative to initial bid so you can understand variances as they happen and manage them with the customer.
Enhanced Professionalism: Your customers want to work with service contractors that run a professional operation, not ones that manage by the seat of their pants. When you can demonstrate to your customers that you can manage your projects efficiently, you communicate a level of professionalism that sets you apart from your competition.
More Wins: Companies that do a better job of job costing have a better understanding of their cost structure. That means they can be a lot more strategic when going up against their completion in a job bid. They understand what types of jobs they are best at, they have a clearer picture of typical pitfalls and "gotchas", and they understand what aspects of their jobs yield them the most margin. Equipped with that information, they can almost always outsmart their competitors and win the work.
And the good news is that with the right systems in place, job costing can be a simple byproduct of the field ticket management process you already have to follow to bill for the work you perform. It really can be that simple.
To learn more about how Caribou can help you improve your job costing, call us at 780-833-9870 to schedule an online demonstration of how your field ticket tracking process actually becomes your job costing process along the way!