Profit Killers on Wood Floor Jobs

Photo of a mad guy on phone

Photo of a mad guy on phoneComplaints, callbacks or absorbed repairs—whatever you call them—are one of the biggest profit killers in the floor business, yet most wood floor contractors don’t know how much they are spending on them.

Complaints can be very costly, sometimes involving legal fees. There is a great emphasis on sales, but what good are sales if there is no profit?

Most floor contractors have a file of jobs in progress. I recommend that one of those files be titled “Absorbed Repairs,” wherein all costs of complaints are recorded and totals entered in the quarterly statement. Each complaint should be treated as a job, with cost of labor and materials listed, including time spent by management. Also, the cause should be listed, such as defective workmanship, materials, or environment, as well as unrealistic expectations.

These causes should be totaled on a chart each quarter so the contractor knows where to direct corrective measures.

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