[8/5/26]The Fight Way NUMBERS- If You Can Track It, You Can Kill It

Derek Johnson shares how transitioning from financial uncertainty to rigorously tracking daily operating expenses enabled him to build a $2.66 million net worth and earn $300,000 annually. He outlines a straightforward formula for calculating daily burn rates by dividing total monthly overhead by 22 working days, allowing contractors to set accurate daily revenue targets. Throughout the call, Derek coaches members through real-world scenarios, encouraging them to maintain margin flexibility when work is slow while overcoming “head trash” on high-ticket estimates. Ultimately, he stresses that charging premium rates requires holding teams accountable and delivering a hassle-free, high-value experience to clients.

Key Takeaways

• Daily Operational Cost Calculation: Calculate your daily burn rate by combining all fixed monthly overhead—including owner salary and desired net profit—and dividing it by 22 working days.

• Simplified 50% Margin Estimating: Double your daily operating costs and double your material expenses on bids to reliably achieve 50% profit margins.

• Margin Flexibility: Aim for a ~51% overall margin average across all jobs, but remain adaptable enough to take lower margins (e.g., 40%) during slow periods to maintain daily cash flow.

• Baking Profit into Overhead: Intentionally treat your annual net profit goal as a required overhead expense so that profit is automatically built into every working day.

• Eliminating Pricing “Head Trash”: Recognize the liability and management burden contractors carry so you don’t feel “greedy” when submitting large, high-profit proposals.

• The Nordstrom Experience: Position your company as a premium, worry-free provider that fixes mistakes immediately without arguing, rather than competing on low price like Walmart.

• Sanity-Checking Estimates: Use your daily burn rate and target yield to stress-test project timelines and verify if estimated man-hours realistically cover costs.