The Schedule of Values is your friend. We share 5 tips to help you improve cashflow you can use in every job.
The Schedule of Values (SOV) can be your friend. Creatively structured, it can significantly improve your cashflow.
Firstly, it’s important for your salespeople to understand that it’s not all about gross profit (aka their commission) and that having your cash sooner means you, the owner, have to borrow less and your risk is mitigated.
Once they are primed to optimize cash here are some tips for your SOV.
Make it easy for your customer. The fewer the line items the better.
Having one number for both elements makes it easier for you to place a higher upfront weighting. The customer is not going to do their own math
One idea would be to separate the key elements into sub line items. We mentioned bundling labor and materials. Now create a bundled number for these:
Tile may be installed weeks or months before resilient and carpet as
Therefore, you should have the ceramic tile and labor be as high as possible so you can legitimately bill it first.