Ep.67: Kicking Off Slippage Awareness Month with Tim Faller – PowerTips Unscripted
Here at Remodelers Advantage we set aside the month of June to focus on an issue that plagues most service-based businesses, but can be a critical metric in looking at the success of a remodeling firm. This is our third annual “Slippage Awareness Month” and this year you’ll see content submissions from our consulting, sales, and production experts here at R/A. Enjoy!
Every remodeling business owner wants to add more money to the bottom line. Reducing slippage is the lowest-hanging fruit to pick in your quest.
In this episode, Tim Faller talks to Victoria and Mark about reducing slippage in your remodeling company. Slippage occurs when your estimate is lower than the real costs of the job. Reducing it takes a change in mindset throughout the organization.
For 17 years, Tim has worked with hundreds of remodeling companies to improve profits by creating smooth, efficient production systems. As a Senior Consultant and Master of Production for Remodelers Advantage, Tim’s field and business ownership experience is vital to his additional role as facilitator for Owner and Production Manager Roundtables Groups. He’s also a published author and popular industry speaker, Tim is co-host of The Tim Faller Show, a weekly podcast focused on “Improving The Bottom Line Through Production Training.”
The biggest challenge in reducing slippage is getting your whole team involved in the effort. Tim says slippage is too often brushed off with “It is what it is.” That’s where the change in mindset comes in — the attitude should be “It is what we make it.” Slippage is controllable, but it takes a company-wide awareness and work to corral it through realistic and accurate estimating, job scheduling, and building in time to de-bug a job before it starts. He talks about the ways to reduce slippage in your processes, including:
- Finding the slippage
- The perfect planning process
- Building in time, and how much
- Developing a critical eye, not a critical attitude
- Why realistic estimating geared to your team is key
- Why you need long-term, short-range, and daily planning
- Killing schedule creep for better net profit
- Building extra time into the schedule
- Figuring out days-per-job overhead
- Controlling the client
- Doing change orders properly
- And more …
Cutting slippage is possible — and will make a big difference in the health of your business.