When it comes to running a successful construction business, the numbers matter. A recent report from the Association of Professional Builders showed a staggering gap: 76.9% of builders want to increase revenue, but 40% don’t monitor their monthly gross margins. Not monitoring these margins can lead to financial instability, reduced competitiveness, and missed opportunities for growth. At Bolster, we know how important accurate financial tracking is. Our software helps contractors avoid these pitfalls.
In this article, we’ll expose the hidden cost of not monitoring monthly margins, look at ways to manage costs and pricing, and give you practical tips to increase your business’s profitability.
Not monitoring monthly margins isn’t just about missing short-term goals; it’s a habit that can have long-term devastating consequences for your business. Here are three ways this neglect can impact your business.
Not tracking monthly gross margins is like flying blind. Projects that seem profitable at first may be bleeding resources. Over time, this lack of visibility can erode your company’s bottom line and lead to unsustainable operations or even bankruptcy. Bolster’s construction estimating software keeps you on top of your numbers and gives you real-time visibility into project profitability.
“Margin tracking has saved our business from costly mistakes. With Bolster, we’ve reduced budget overruns by 30%” – Bolster user testimonial.
Not monitoring your margins means you can’t see inefficiencies or control costs. This affects individual projects but also your ability to compete in a crowded market. Businesses that regularly review their financials are better equipped to make informed decisions and implement change.
Use Bolster’s budgeting features to identify areas of waste and stay ahead of the competition.
Growth requires planning, and planning requires data. Without a clear view of your monthly margins, forecasting cash flow and allocating resources for growth become impossible. Bolster’s forecasting tools help businesses see trends and plan for the long term.
At the heart of any profitable construction business are two things: managing costs, and pricing services. Here’s how Bolster can help.
Cost management starts with budgeting and expense tracking. By tracking expenses at every stage—materials, labor, and overhead—you can catch overspending before it’s a problem. Bolster automates this process so every dollar is accounted for.
Don’t compete on price alone. Compete on value. Value-based pricing allows you to charge more by showcasing your expertise and service. Bolster’s analytics tools help you show your value through data-driven reports, client testimonials, and project portfolios.
Technology is a game changer for cost management. Bolster’s platform has real-time expense tracking, automated budgeting, and advanced data analytics. These features allow you to optimise pricing, control costs, and make informed decisions with confidence. To learn more, check out this article: "Your guide to the latest construction technology trends".
Making strategic changes can add to your bottom line. Here are 10 practical steps to increase your monthly margins with Bolster’s features and tools.
Long-term supplier relationships can get you discounts and rebates. Bolster’s resource management feature tracks bulk purchase agreements and savings opportunities.
Minimize waste and downtime by allocating labour, equipment, and materials efficiently. Bolster’s scheduling tools assign tasks effectively so you get more productivity.
Use Bolster’s collaboration tools to standardise workflows and improve team communication. Less overhead means more profit.
Regularly tracking project costs against budget is critical. Bolster’s real-time updates alert you to cost overruns so you can act fast.
“Bolster’s cost tracking tools showed us we were 15% over budget on one of our projects so we could adjust and"save"—Bolster user.
Accurate quoting is the key to profit. Bolster’s instant, automated material & labor costs ensure accuracy so you don’t underquote or overquote costs.
Identify and specialize in high-margin services. Use Bolster’s reporting tools to see which services or projects are most profitable.
Optimise costs without sacrificing quality. Bolster’s software allows you to compare alternative materials and methods to find a cost-effective solution.
Automation reduces human error and increases efficiency. Bolster’s platform automates budgeting, scheduling, and reporting so you can focus on strategy.
Markets change, and so should your pricing. Bolster’s analytics track industry trends and competitor pricing for you.
Happy clients mean repeat business and referrals. Bolster’s CRM tools help you manage client relationships so you can deliver a better customer experience.
How Other Builders are Doing with Bolster
Success leaves clues. Many of Bolster’s clients have grown their businesses by using our software. Whether it’s reducing budget blowouts, simplifying workflows, or improving client satisfaction, our tools are designed to help contractors succeed.
One client example is a residential builder who increased their monthly margins by 25% after using Bolster’s cost management and quoting features. They put it down to the real-time insights and ease of use of the software.
Monitoring monthly margins is not just good practice; it’s critical to the survival and profitability of your building business. The risks of not doing so are too great to ignore, but the solutions are at your fingertips.
At Bolster, we know what it’s like to be a contractor. Our construction estimating software allows you to track margins, manage costs, and price strategically so your business can compete in a tough market.
Get started with Bolster today and see the difference accurate financial tracking can make.
This is not a guide, but a call to action. Stop ignoring the hidden effects of unmanaged margins and invest in the tools your business needs to succeed. With Bolster, long-term growth is no longer a distant dream—it’s a given.