The Power of the 1% Rule in Your Restoration Business

Most owners believe that profitability only comes from making huge changes—like landing a massive commercial contract or cutting overhead in half. But here’s the truth: 1% is all it takes.

How 1% Adds Up Fast

Let’s say you’re running a $5 million restoration company.

• A 1% increase in pricing adds $50,000 in revenue without selling a single additional job.

• A 1% cut in material costs sends another $50,000 straight to profit.

• A 1% gain in labor efficiency doesn’t show up as a neat line item, but it means jobs close faster, crews avoid overtime, and you’ve got more capacity to take on additional revenue.

Individually, these wins feel small—almost invisible. But stack them together, and suddenly you’re looking at hundreds of thousands of dollars added to your bottom line.

Why Contractors Miss It

The danger is that owners spend too much time chasing only the “big move.” They’ll wait for a large insurance program or a second location to fix their margins—while ignoring the compounding effect of small improvements already available inside their business.

And here’s the catch: if you aren’t tracking these numbers, you won’t even know when you’re losing them.

Where to Find Your 1% Gains

You don’t need a total overhaul to improve profitability. You just need to know where to look:

• Are your labor hours tracked tightly enough?

• Do you know if material usage is creeping higher than budgeted?

• Is equipment utilization consistent across every job?

• Do your margins on mitigation match your margins on rebuild?

Answering those questions can unlock the small but powerful wins that add up to major financial results.

Take the Next Step

At Kiwi Cash Flow, we help restoration contractors uncover those hidden 1% gains—and make sure they show up in your bottom line. Don’t wait for a “big break” that may never come. The math already works in your favor.

👉 Book a call today and let’s stack the 1% improvements that scale your business.