Arkansas HVACR NewsMagazine May 2026

HVACR NewsMagazine March 2026

Business & Marketing Tips

When you calculate this number, you really see what you are taking home. You're not looking at sales. You're not looking at gross profit. You're including all of your business expenses, including overhead, to see the true bottom line. You're not fooling yourself with gross profit per man day or any other calculation based on gross profit. This is the most important KPI to track. If it is in line, your company’s other KPI’s will be in line too.

Article furnished by Ruth King Profit & Wealth Guru 770-729-0258 rking@ontheribbon.com

KPI??? Key Performance Indicator

Contractors talk about different metrics for their business – service ticket revenue, closing percentages, gross margins, etc. Many miss the most important Key Performance Indicator (KPI) to track: Net Profit Per Billable hour. Why: If this KPI is in line with what you want it to be, the others will be too. Remember: The way we generate revenue is through a billable hour, not the hours paid to a field employee. No billable hour, no service revenue. No billable hour, no projects or replacement revenue. No billable hour, no maintenance revenue. Calculating your net profit per billable hour:

OSHA Occupational Exposure to Heat and Hot Environments

Net profit per billable hour = net operating profit total billable hours

170 º attic

Many times it's a "slap in the face" when you calculate this number for the first time. We calculated it in a recent class and the highest net profit per hour was $3.60. The lowest was less than $1. At least they were positive. (A negative net profit per hour means that you are paying your customers to provide products and services to them).

Older, Fat, Men don’t handle heat so good. Be careful this summer Drink 1 qt of water / hour

Study Shows