How to Improve Restoration Profit: 5 Key Areas That Make or Break Your Bottom Line
If you're a restoration contractor trying to grow your business, you’ve probably asked: “Why isn’t my profit higher?” You’re bringing in revenue, jobs are coming in, the team is working hard—but somehow, the bottom line isn’t where it should be.
Improving restoration profit isn’t about working more—it’s about understanding where the money goes, and how to make smarter financial decisions.
Here are five core areas that directly impact profitability in a restoration business:
1. Track Job Costs Accurately
Profit starts at the job level. If you're not tracking what each job costs you—labor, materials, subs, equipment—you’re flying blind.
How this affects profit:
Without solid job costing, you can’t tell which types of jobs are profitable or where you're leaking money. Over time, small inaccuracies add up to big losses.
Quick tip: Use classes or project tracking in QuickBooks Online and tag every expense to the correct job.
2. Know Your Labor Ratios
Labor is one of the biggest costs in restoration. If your in-house labor is too high relative to revenue—or if you’re overusing expensive subs—your restoration profit will suffer.
What to look at:
Labor as a % of revenue
Tech utilization (how many hours are billable)
Subcontractor vs. employee costs
You need clear labor KPIs to make hiring, scheduling, and pricing decisions that drive profit.
3. Control Overhead Expenses
It’s easy for restoration companies to outgrow their margins—adding trucks, software, staff, and rent too quickly. Not every expense is productive.
Key to profit:
Keep overhead lean and aligned with the revenue you're bringing in. Use monthly financial reports to monitor what percentage of your revenue is going to fixed costs.
4. Price for Profit, Not Just for the Job
Many contractors price based on market competition or what they think the client will pay. But restoration pricing should account for actual costs, including your profit target.
Are you charging enough to cover:
Labor and materials?
Equipment wear and replacement?
Admin and sales team support?
Target net profit?
If not, you’re just breaking even—and that’s not sustainable.
5. Use Your Financials to Make Decisions
You can't fix what you don't measure. Restoration profit improves when you're looking at accurate, timely financial reports—and using that data to make strategic decisions.
Ask yourself:
Do I know which service lines are most profitable?
Can I see my profit per job, per tech, or per service type?
Am I making decisions based on cash flow or gut feeling?
The Bottom Line
Restoration profit doesn’t just happen—it’s engineered. And it starts with visibility: tracking job-level numbers, controlling overhead, and using data to make decisions that move the needle.
Want help uncovering where your profit is leaking—and how to fix it?
📅 Schedule a call with us here to learn how Kiwi Cash Flow helps restoration companies increase visibility, pricing power, and profit.