Labor Cost Tracking for Service Businesses
The Profit Illusion
Most service businesses track revenue well but have no idea what labor actually costs per job. They know total payroll, but not the per-job breakdown.
Without this, you can't know:
- Which job types are profitable
- Which customers are worth keeping
- Where inefficiencies are hiding
- How to price new services
What Real Labor Tracking Captures
Time Per Job Phase
Not just total time—break it down. Drive time, setup time, work time, cleanup time. Each phase reveals different optimization opportunities.
Crew Utilization
How much of the day is billable vs non-billable? Industry standard is 60-70% utilization. If you're below that, you're bleeding money.
Job Complexity Factors
Some jobs take longer because they're harder, not because techs are slow. Track complexity to price accurately.
Overtime Patterns
Where does overtime happen? Certain routes? Certain job types? Specific customers?
The Result
Businesses tracking labor per job can identify which services have 40%+ margins vs which have <10%. Then make informed decisions about what to grow.
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