The Profit Formula Builders Ignore Insights from Russ Stephens of APB
- Construction Champions Podcast
- May 1
- 2 min read
Too many builders are working too hard for too little and they don’t even know why.
In this episode of the Construction Champions Podcast, Russ Stephens, co-founder of the Association of Professional Builders (APB), breaks down the critical formula most contractors are missing: how to price for profit.
This isn’t just about charging more. It’s about understanding your costs, protecting your margins, and running a business, not just a job site.
1. Builders Don’t Know Their Numbers
The Problem:
Most builders run their business by checking the bank account. If there’s money in it, things must be fine, right?
Wrong.
Without clear insight into revenue, expenses, and profitability by project, you’re guessing. And that guesswork leads to:
Undervalued bids
Poor cash flow
Burnout
Pro Tip: Gut feeling isn’t a strategy. Know your numbers.
2. The Profit Formula That Works
Russ shares the framework every contractor should follow:
Revenue - Job Costs = Gross Profit
Gross Profit - Overhead = Net Profit
Why It Matters:
Most builders don’t track overhead properly
Too many confuse cash flow with profit
Not knowing break-even means not knowing when you’re losing money
What to Do:
Track job costing by line item
Allocate fixed and variable overhead accurately
Set a profit target—and price your jobs to hit it
Reminder: Profit isn’t what’s left over. It’s what you build into the price from the start.
3. Price with Intention, Not Emotion
Clients will always try to negotiate. If you price emotionally or out of fear of losing the job, you cut into the health of your business.
How to Fix It:
Use a consistent markup formula
Stick to your profit target
Sell on value, not price
Pro Tip: If you can’t say no to low-margin work, you’ll never say yes to profit.
4. Builders Need a Plan to Grow
It’s not just about doing more jobs. It’s about doing the right jobs with the right pricing and systems in place.
What Russ Recommends:
Build a financial model for your business
Use KPIs to measure project performance
Invest in business coaching or accountability
The Goal:
A construction company that runs on data, not chaos.
Final Thoughts: Profit Is a Process
If you’re still checking your bank balance to decide if you’re okay—it’s time to upgrade your business strategy.
Builders who know their numbers, price for profit, and track performance are the ones who scale successfully and sustainably.
Watch the full episode here
Connect
Russ
Association of Professional Builders Annual Report FREE Pre-Order! https://link.msgsndr.com/email-tracking/232d1370d5f?contactId={{contact.id}}&utm_source=email&utm_medium=email%20marke
Ron
BuilderComs communication software and systems to grow your business! https://www.buildercoms.com/
Tranzlation AI is the real-time voice and text translation platform built for the trades, eliminating language barriers on jobsites so crews can work faster, safer, and smarter. https://www.tranzlationai.com/
Website
#ConstructionChampionsPodcast #RussStephens #APB #KnowYourNumbers #ConstructionProfit #BuilderMindset #RonNussbaum #ConstructionBusinessSuccess
The Profit Formula Builders Ignore Insights from Russ Stephens of APB
Comments