How many woodworking projects are you running right now? Without job cost analysis, each one is burning money that could be going right into your pocket today! Job cost analysis is non-negotiable for maintaining profitability and running your shop smoothly. That’s why I talked with Cassy Thomeier about ways to make more money per project with job cost analysis starting right now. Here’s how your business can make more money quick and easy with job cost analysis…

Get Your Data Straight

Look, any job cost analysis worth its salt starts with solid data. Make sure you’ve got as much info as possible in your woodworking shop, and you’ll know exactly where the money leaks are coming from. At Cassy’s company they used an ERP system that tracked everything from hours worked to materials purchased. Popular, right?

But even if some hard hats needed a little time to adjust to punching in for their shifts, the long-term results are downright amazing: $20 million in profits just this year! That’s the power of job cost analysis.

Know Your Burden Rate

It’s an easy mistake to make, but missing the burden rate can really hurt your job cost analysis. Direct wages, taxes, benefits, workers comp, and other employee-related expenses are all part of your burden rate, so make sure not to leave anything out! Cassy also had a lot of success when she doubled down on learning her true labor costs, so if you’re running a big firm then maybe it’s time to double-check those numbers?

Honesty is the Best Policy

Unless you’re a one-man team, job cost analysis means working with your employees to find the revenue sinks. That means being honest from the get-go, and keeping them in the loop at every step. Make sure your woodworking company’s employees–estimators, project managers, operations, production leaders–are part of every meeting. They’ll understand any changes you make much better, and might have new ideas to bring your business even bigger savings, too!

No Blame, All Gain

It’s tempting to play the blame game when something doesn’t look right, but there’s nothing worse for your business. Honesty is crucial, and that means creating an environment where people feel safe to admit their screwups. Now that doesn’t mean no accountability, but a little understanding goes a long way. When done right, you can turn a mistake into an opportunity for new and better ideas, and get every employee to hold themselves accountable to themselves as well as to you. Mastering job cost analysis in woodworking involves more than just crunching numbers—it's about creating an integrated system that leverages accurate data, embraces team collaboration, and promotes a culture of continuous learning. Through strategic changes and a few honest conversations, woodworking shops can turn a bigger profit without any extra work. It’s that easy!