How Profit Fade Will Eat at Your Bottom Line - October 2021

By John Kenney, CEO, Cotney Consulting Group
Tue, Dec 07, 2021 at 8:00AM

Profit fade occurs when a company’s profits are less than expected due to the dynamic nature of the roofing business. A company’s initial calculations for extraordinarily complex and time-consuming projects may not match up in the end, leading to profit fade.

Sometimes profit fade is linked to external factors; like many businesses are currently experiencing, such as price increases in materials. Other factors can be wrong estimates, poor subcontractor performance or unbillable changes. Even unpredictable weather can cause profit fade if there is not a good contingency plan in place. 

Monitor profits and costs during the length of a project. Work with your project managers and accountants collaboratively and adapt to issues as they arise. Read more

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