Top Metrics For Ensuring Integrator Profitability - Statistics

By IPVM Team, Published Mar 20, 2019, 09:12am EDT

How do integrators ensure the profitability of their projects? As part of our profitability study, 100+ integrators answered the following question:

What is the most important metric(s) your company uses for ensuring profitability? Why?

Inside this report, we examine the top 3 metrics from integrators, we share dozens of comments to show the key themes and importance of each metric.

Key Themes

The following key themes were highlighted in the comments:

  • Tracking labor accurately and keeping installers efficient is the primary concern for most integrators. Related, see IPVM's Surveillance Install Labor Guide.
  • Material cost is a secondary concern and does not impact profitability nearly as much as labor
  • Monitoring individual project's margin is used as a way to track overall business profitability
  • Less than 5% of integrators cited specific operational metrics (e.g. EBITDA, ROCE)

Labor ** ***

*** **** ******** ***** metrics **** ******* ** labor *********** *** **********. Labor ** * ***** percentage ** **** ********, can ** ********* ** track, *** *********** ***** pressure ** *** ******** are ***** ******* ** undersell ***** *****.

****** ***** *******, ********** estimating ***** *** ********* to ****** ***** ****** was ***** ** * way ** ******* ******* sales/bids ** ***** ****** (our **** ************ ******* ***** Guide *** **** *****).

  • "***** **********. *** *** only **** ******."
  • "***** ************, **** **** robbery, ****'* ***** *** money **"
  • "***** **** ** *** compared ** ***** ****** for *** ************* **** we *** ** ******, letting *********** ********** **** budget **** **** *** working ** * **** to ******* **** ****** is ********"
  • "****** *** ****. *** limiting ****** ** ********. There ** * ***** to *** **** ***** we *** **** **** the ***** ** ****, there ****** ** ** limit ** *** **** stuff ** *** *** to ******. "
  • "*****. ******* * *** return ***** *** **** your ******."
  • "****** *** *** *** also ***** ****** ********** on *** ***. ****** per *** **** ** $1500 *** *** *** a **** ** *** techs. ***** ****** ********** on * ******* ** >34%. **** ***** **** there *** ****** ** projects ***** *** *** day ****** ** **** like *** *** *** percentage ** ** **** 20's."
  • "***** ***********. ***** ** by *** *** ******* expense, *** *** **** unprofitable **** **'** **** had **** *** ** labor ******** ** **** project **********, **** ** not ******* ****** ****** orders."
  • "****** ** **** ***** working - ** ** are ****** * *** of ***** *** ******* in **** **** *,*** hours *** ****, ** may *** ** ***** it ** *** *** of *** ***. ** try ** ****** ****** vs **** ***** ******* is *********"
  • "************ **********. **** ** we **** * *** at ** ********* ****** margin *** *** ************ team ***** ******** ** end ** ****** ***** left *** *****."
  • "******* ***** ***** *********** and ********. ******** ******* shouldn't ********* ****, *** anyone ******** **** **** 20% ****** ** ***-******* manufactured ******* ******'* **** the **** *********** ** me"
  • "******* ***** ***** ** go **** ********* *****, we **** *** ******* and **** **** ** put ***** ** *** ground ** **** **** our ********* *** ********** under *******. "
  • "** ******* *** **** taken ** *** **** allowed. *** ****** ********* is *** ******** ****."
  • "********* ** *** **** it ***** ** *******. Accurate **** ******* ** our *** ******** ********. Ensuring ******* *** **********."
  • "***** ****** ** **** to *** ****** ******** operational. (**** ************ **** takes **** **** ******* profits)"
  • "**** **** ****** ********* on ******** - ******** changes/extra ********/****** ** **** time - ********* ******** approval *** ****** ***********, not ***** * *** is ********"
  • "*** **** ********* ****** we ***** ** *** changed **** ****, *** we *** ********* ************* focused ** *** ***** +/- (*** **** ***** over/under *** ********* ***** are *** ******** ****** up **"
  • "****** ** *** ***** per ****: **** ** mount * ***** ***** vs *-*-*, **** ** program * ******, ******, workstation. *** ***** *** task "

******

*********** **** ******** ****** monitoring ***** ******, **** specifically, ******/****** ******* ** individual ******** ** ** indicator ** ******* ******* profitability. ** ***** ********, many ***** **** ****** related ** ********* *** a *** ************* ** addition ** *****, ******** the ******* ***** **** specified *** **** ******* and **** ****** *************:

  • "******* ***** ****** ******* on **** ********* *** labor. ***** **** ***’* enough ** **** * profit."
  • "* ******* ******* ****** Ratios *** ****** ******. For * ******* ****** company **** ** ***** are ***** ***** ****** or ****** ** ******** becomes ********* ** ******** our ******** *** *********. There ***** ******** ***** we **** **** ****** to ******** * **** margin. **** ** *** we ******* ****."
  • "******** ** ****** ****** during *** ***** *******"
  • "** ** *** *** of * ***. **** metric ***** ** *** we ********* ** *** job ** ***** *****. Was ** ****** *********? Were ***** ******* *** the **** *****? *** the **** ******* ********* in *** *****. * low ** ***** ** to *** ******* *** understand **** ** *** wrong."
  • "** **** *** **** monitoring ******** **** ****** all ***** *** ******** associated **** **** ***."
  • "****** ** *** ******** of **** ***. ****** is **% ******* ** >20% *** ****** ****."
  • "******** ***** * ******* GP ** ******** ** each ****. *** ******** has ********** ******** ***** costs, ** ** ** keep *** ** *******, we're **********."
  • "** *** ******* ****** (estimated *** ******) *** company ********. ** **** as ** ******** * reasonable ******** *** *** projects ** **** *** expected ** ** **********, we ** **."
  • "*** ******* ** ****** driven **** ******* ** all ************. ******* ****** is ******* *** ********."
  • "** *** * ****** of *******, *** **** important ** ***** ** gross ****** ** ***** which ** ******* ** not ******** ********* *** ensuring ******** *******"
  • "***** ****** - ****** estimating *** *********** ******* of ******* ******* *** GM ****** ****** ****** - ******* ***** ***’* be ***** *******"
  • "*** ** *** ***** are ******* ** ****** materials+labor *** ********* ** the ********."
  • "** ****** ***’* **** any ****** *** ******** profitability ***** **** ********** our ******. ** *** metric ** ******* * good ****** ** ********."
  • "*** ****** *** *** we **** ** ** can ******* *** **** that **** **** ***** we *** ****** **** (add **** ** *** allowances) *** **** *** work."
  • "** ***** ** *** margins *** **** *******. Trying ** ******** ************* 40% - **% ****** on *** *********** ** labor *** *****."
  • "***** ******. **** ** the ******** ******* ** profit ** ** ******* to *** **** ** easy ** **** ***** we ***** **** * costing *** * **** job ******** **********."

Reported ******** ****** *** *******

**** * *********** ********* with **** ******** ******* for ********* * *******'* performance (******,****, *******):

  • "****** ** ******* ******** (ROCE). **** ******* *** a ***** ******* *** most ****** *** **** comparing *** *******'* ******* ROCE ** **** ****** from ******* ******.** * result ,******** **** **** for **** ** **** trends ** * *******'* ROCE, ** *** ********* that *** ******* ****** is ** ** *** improving *** ******* ** earn *********** **** '*******'"
  • "** ******* ************* ** various ****** *** ***-****** and **** *** ** those ******** ******* *** examined ******* ** “*******” profitabiliy *** **** ** adjust ***** ****** ****** the ****** ** ***** to ******* ******* *************. There ** ** *** single ****** **** ******* profitability ************ ** *** degree **** ** ***** sink *** ****. ** have * ****** ***** metrics ****, ** **** started ** **** *** at ****, ***** ****** overall ************* *** ****, but ** ***** *** that ** *** *******."
  • "******"
  • "****, ***** *** **** numbers"

Comments (1)

***** *******, **** ***** metrics ** ****. 

 

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