Think Bigger: Contractor Profit Pyramid

Determining your position on the Profit Pyramid can help you know the steps to take to move yourself up the ladder. Here are some simple points related to each step of the pyramid and how it might relate to your business.

Contractor’s Profit Pyramid

1- Man Contractor Business

Up to $500,000 annually in sales. At this level you are doing everything yourself.

Next steps:

1. Take at least 10% of your sales and put it into promotion and marketing.
2. Determine what form of promotion gets you the biggest bang for your buck, such as Google Ads for immediate leads, and do that.

1- Crew Contractors

From $500,000 to up to $1 million annually in sales. At this level, you have one crew working for you.

• You may be starting to get overwhelmed; you need more referrals, and you are probably working long hours.
• You likely have some marketing, such as signs, trucks magnets, and a basic website.
• You might be paying a friend or a one-man band to help with some advertising.

Next steps:

1. This is a good time to invest in hiring someone to help you move up to the next level.
2. Get targeted Search Engine Optimization (SEO) to draw leads to your website.
3. Start a Google Ads campaign for immediate leads.

2-5 Crews or More

From $1 million to $25 million annually in sales. At this level, you have more employees and have some company structure in place.

• You are making money and have some marketing in place.
• You need steady, consistent leads.
• You are looking for regular, good salespeople and improving your online presence. Time to hire better people for your marketing.
• There is a need to stay above your competitors.

Next steps:

1. Hire a team for your marketing.
2. Get aggressive with your online marketing.
3. Push above your competitors.

Doing Mostly Tenders, Big Commercial Jobs

From $25+ million annually in sales.

• HR, Unions, managing staff, supply chains and processes are your pains.
• Reputation and PR must be maintained at a high level.

Next Steps:

1. Build custom applications to streamline your operations.
2. Build enterprise applications for internal use.
3. The need for technology increases.
4. Steady, large marketing budget.
5. Maintenance and development budgets.

Understanding where you stand on the Profit Pyramid and implementing the next steps can help you climb to the next level of business success.

Every business has a unique Profit Pyramid that reveals the hierarchy of profitability within its’ operations. By analyzing this structure, you can pinpoint areas for growth and tailor your marketing strategies to maximize profit and drive success.

At DIT Web Solutions, we specialize in helping businesses just like yours at every state of the Profit Pyramid achieve their goals. Whether you’re just starting or looking to optimize your large-scale operations, our comprehensive suite of services—including targeted SEO, custom application development, as well as strategic online marketing—can provide the boost you need.

Ready to elevate your business? Contact DIT Web Solutions today and let us help you climb the Profit Pyramid!

Visit us today at DIT Web Solutions to see why we are your marketing partner, or call us at (416) 461-1143 to get started.