A short promotional/explanatory video by Mike Andes (founder & CEO, Copilot CRM) describing how job costing and price matrices in Copilot CRM prevent underpriced projects. Andes recounts a past $70,000 project that likely lost money because job costing wasn’t done; he explains that Copilot’s price matrix aggregates COGS (materials, labor, subcontractors) to compute break-even points and target profit pricing. He also points viewers to a webinar with Mike Callahan (Simple Growth) and to implementation help via ATC.
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Hey everyone, it's Mike Andes, founder and CEO of Copilot CRM. Today I'm talking about something inside of Copilot that could really save your. Save, save you a lot of money. Because I had this $70,000 project that we did one time and I remember it so well. Lee was my estimator at the time, Liz was my office manager. And we, this massive project we were going to do during the winter, like $70,000. Not necessarily massive in terms of the project size, but it was new for us. We hadn't ever done this type of paver. It was like these big slate venetian things. Really, really nice. But at the very best, we probably broke even on this project, probably lost a few thousand dollars, Literally lost a shirt off my back because we simply didn't do job costing correctly on this job. And so COPA fixes this problem because now you can do job costing and price matrix inside of copa. And what's really cool is it's not super cumbersome. It does, it's not super complex. Our goal is to make it simple and useful to. When you're doing estimating using price matrix, you can actually have an estimate that is accurate. Because if I would have had price matrix back then, I would have realized that we had a massive. We did not calculate the amount that we have to spend on subcontractors. And so what this does, it takes all of your cogs, your cost of goods, sold, things like your materials, your labor, your subcontractors, and then make sure that you actually know your break even point and when you're going to make money on it project. So when you go into a project, you're not flying blind. You actually already know before the job starts how much money you're going to make. And in this case, I would have known how much money I was going to lose if I would have given the price at what I did, which is $70,000, it should have been more like 100 or 110,000. And I would have known that if I would have used job costing. Job costing is simply a way of putting all the costs of a specific job to be able to know before the job starts what your profit margin is, what, what your break even point is, and how much you're going to be spending on all of your cogs, on materials, your direct labor, your subcontractors. So never again should you ever lose money on a project because Copilot is going to be able to tell you what that profit margin should be and what your pricing should be based upon your target profit margin. Now those are a lot of big words. Don't worry about it. We can help you at ATC Air Traffic Control inside of Copilot to help you get set up. Furthermore, Simple Growth, Mike Callahan from Simple Growth, they do this all the time and they set these up for you. Now, if you want to pay them, you can do that. But they actually give us all the tutorials, all the training required to get job costing and price matrices set up in your business. Because they're the pros. They spent literally decades doing this and they've given us the free resources. So you can set it up all inside of Copilot and every single project before the job starts, you know what to price it at to be able to not just break even, but also make a healthy profit.
Now, if you want the full breakdown and actually see Mike Callahan, the owner of Simple Growth, and myself talk about job costing and price matrices and actually break down all the math of how that works, finding out your break even point, go. The button below is actually a recording of a webinar we did together. And I think it's gonna be super useful. Even if you don't use Copilot, it's gonna talk a lot about your numbers and understanding how to do estimating based upon job costing.
