263 - Why Your 40% Margin Becomes 33% (And How to Fix It)

Think your 40% profit margin is solid? Think again. Martin and Khalil expose the hidden costs that eat into your profits—and show you how to stop the bleed.Time Stamps00:56 - Martin's Client's Issue02:14 - Understanding Variable Expenses03:30 - Allocating Costs and Overhead05:27 - Realizing the Impact on Profit Margins18:08 - Employee Compensation and Tariffs18:44 - Bulk Purchases and Inventory Challenges22:33 - Understanding Burdening in Business33:46 - Practical Steps to Improve Bidding AccuracySnippets from the Episode“You bid everything just fine, but then you look at your books and you're not making any money. Something’s off—and the good news is, it can be fixed.” - Martin Holland“If you’re bidding for 40% and you’re not seeing that in your gross profit margin, you’ve got to find the difference. That is management.” - Martin Holland“Nothing’s worse than thinking you’re going to get something and coming in 7% lower. That’s more than just a rounding error—that’s a business risk.” - Khalil Benalioulhaj“You could be winning bids while losing money. When you fix your pricing, you gain margin on every future job without chasing more sales.” - Khalil BenalioulhajResourcesCFC 249 - The $600,000 Accounting Error That Almost Destroyed My Business with Cory ParksThe Break-Even System by Spencer Tucker24 Things⁠⁠⁠⁠⁠⁠ Construction Business Owners Need to Successfully Hire & Train an Executive Assistant⁠⁠⁠⁠⁠⁠Schedule⁠⁠⁠⁠⁠⁠ a 15-Minute Roadblock CallCheck out ⁠⁠⁠⁠⁠⁠OpenPhone⁠⁠⁠⁠⁠⁠Build a Business that Runs without you. Explore our ⁠⁠⁠⁠⁠⁠GrowthKits ⁠⁠⁠⁠⁠⁠Need Marketing Help? We Recommend ⁠⁠⁠⁠⁠⁠Benali⁠⁠⁠⁠⁠⁠Need Help with podcast production? We recommend ⁠⁠⁠⁠⁠⁠Demandcast⁠⁠⁠⁠⁠⁠More from Martin Holland⁠⁠⁠⁠⁠⁠theprofitproblem.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠annealbc.com ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Email Martin⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Meet With Martin⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠⁠More from Khalil⁠⁠⁠⁠⁠⁠benali.com ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Email Khalil⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Meet With Khalil⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠⁠More from The Cash Flow ContractorSubscribe to our ⁠⁠⁠⁠⁠⁠YouTube channel⁠⁠⁠⁠⁠⁠Subscribe to our ⁠⁠⁠⁠⁠⁠Newsletter⁠⁠⁠⁠⁠⁠Follow On Social: ⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠,⁠⁠⁠⁠⁠⁠ Facebook⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠Instagram, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠X(formerly Twitter)⁠⁠⁠⁠⁠⁠Visit our ⁠⁠⁠⁠⁠⁠website⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Email⁠⁠⁠⁠⁠⁠ The Cashflow Contractor