As a contractor, you know not all crews are created equal. Some finish jobs under budget with quality results, while others consistently go over hours or waste materials. But here’s the thing — unless you’re tracking gross profit per crew, you’re flying blind.

Think about it: if Crew A delivers jobs with a 42% gross margin and Crew B lags behind at 26%, that’s a massive difference in profitability over the course of a year. One’s helping you build wealth. The other’s quietly draining it.

Tracking gross profit by crew means tying labor hours and material costs back to each job and each crew responsible. It’s not about finger-pointing. It’s about visibility and accountability — so you can support the right training, scheduling, and even bonus systems.

Real World Mistake & Lesson: One contractor I worked with was running five crews and wondering why his profits seemed flat despite solid revenue growth. Turns out, one crew was doing twice the volume of another — but earning half the gross profit. Their labor efficiency was off, materials were wasted, and rework was common. He was breaking even or losing money on those jobs, masked by the success of his top-performing teams.

We implemented job costing by crew, tracked profitability over six months, and created a bonus structure tied to gross profit per job. The lower-performing crews improved dramatically — and morale actually increased because performance was rewarded fairly.

 Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com