Proof: Builder makes very small profit despite charging $6,000 to erect a $600 garden shed!

It probably seems simple to erect a 3m x 3m garden shed, doesn’t it? I mean there’s not much to it, right? Small slab, basic tools and up it goes.

In reality, we use Xero Projects and prove that you need to be very careful quoting low prices if you have staff who are paid by the hour.

Trips to Bunnings and calling in staff from other projects can hugely blow out your costs — yes, MUCH more than you may think and our new Xero Projects micro course provides it!

Vehicles, Bunnings trips & extra labour are expensive

It can be very cheap to erect a garden shed yourself, or with a couple handy friends because you don’t count the hours it takes for each person. A builder or trades person on the other hand needs to account for every cost they incur because these costs can cause major headaches and risk profitability. 

Profit and Loss reports and balance sheets are a good measure of the overall profitability of a business but tradies and builders in particular need to make sure that every job or project is profitable. 

Read more about the scenarios used in our Xero Projects and MYOB Job Tracking case study.