PLUMBING: FIXTURE ALLOWANCES AND THE BACK-CHARGE TRAP
Fixture packages ride owner allowances, selections arrive late, substitutions arrive later.
This page covers one problem. The full picture for this trade, including the other places margin leaks, is on the plumbing operating system page.
WHERE THE MONEY GOES.
Covered in full in the quick answer above. The sourced numbers and what controls it are below.
THE NUMBER TO MEASURE IT AGAINST.
Plumbing contractors run about % net profit at $1M to $5M, rising to roughly 11% at $5M to $10M. The CFOS target at $1M to $5M is11%, set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher. A problem like this one lives in the distance between those two figures rather than in a loss on any single job.
Gross margin over the same bands runs % to 26%, against a CFOS target of 11%.
