3 necessary metrics to boost tech productivity

April 11, 2023

Tracking productivity is a task that makes many integrators ask, “Why bother?” but there’s one simple reason it matters:

It measures the efficiency of your company’s production process and, if it fails to meet a standard and improve over time, can lead to…

  • Limited potential gains and wages
  • Decreased company profits
  • Lowered investability

In short, decreased productivity negatively affects your blended gross margin, the #1 metric to manage the health of your CI business.

So how productive should your techs be? Use these 3 metrics:

  1. Set your billable rate for technicians at 4–5x the average technician wage. This may seem high, but a well-managed team should be able to achieve a 60%+ labor margin with that markup.
  2. Aim for 50% financial efficiency. As a general rule, you should bill 20 hours (at the 5x price markup) for every 40 hours paid. Efficiency is both speed of work and hours estimated versus actual.
  3. Work towards 60% labor gross margin (the actual financial profit margin difference between what is paid in payroll versus what is collected in labor revenue for the same time period).

To achieve maximum productivity and create subconscious positive change, make these metrics visible, review them monthly, reward improvements, and, most importantly, measure, measure, before you take action.

If you want to go deeper into actionable strategies to improve tech productivity, watch the replay of our CI Business Mastery class here.


Matt & the team

Tailored Metrics for Your Business

Ever tried comparing your success metrics with a friend’s, only to end up confused? The VITAL Method sets standard industry practices in accounting, productivity, project management, leadership, bid management, and warranty support.

In our view, business excellence involves systematic approaches, accountability, and keeping a close eye on the numbers. Wondering how to weave these practices into your business? We’ve got you covered.

Embark on Your Data-Driven Journey

Ready to make informed decisions for your custom integration business? Schedule a free 15-minute call with a VITAL Guide – your first step towards a future where your business decisions are rooted in practical data and strategic insights. Dive into the VITAL Method and transform your business today.


Matt & the team


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