COST MANAGEMENT ESSENTIALS –
PROJECT PROFIT MARGIN
What is complicated, requires a lot of data analysis, and damages your entire business if not done properly? Monitoring the profit margin of projects for businesses in architecture and interior design.
Architecture, interior design, and refurbishment companies are either product-heavy or service-heavy. They can either emphasise and promote the selling of a line of products (for example, partitions, electricals, furniture and textiles) where the labour is incidental to the product, such as in installation and maintenance. Or they emphasise and promote service excellence (project management, consulting or design expertise) and the product is determined by the design and incidental to the service.
Therefore profit and loss structure of the business will differ depending on whether they are more material or labour-intensive and whether they rely on outsourced or full-time labour.
As projects shed labour hours that are difficult to estimate accurately, the labour cost increases and the profit margin disappears. Hence, it becomes imperative to control profit margin per project as it will determine your overall profitability.
- Control Labour and Material Costs
- Track Project-by-Project Margin Growth
- Calculate and Track Profit Drivers
If you have any questions regarding the cost management for architecture, refurbishment or interior design practice, please get in touch. We’d be delighted to schedule a discovery call.