NextMinute Blog

The $10K Leak: Hidden Costs Killing Tradie Profit

Stop the $10K leak. See 7 hidden costs draining Kiwi tradies profits and how to plug them with better quoting, timesheets, and invoicing.

You’re flat out, the crew’s been smashing through jobs, quotes are flying out the door. But at the end of day, somehow the profit’s just not there. You’re left scratching your head going: where the hell did the money go?

Chances are, you’ve got a $10K leak. Little bits of margin slipping away across every job. Not enough to ring alarm bells on their own, but together? They add up fast.

In this guide, we’ll show you 7 hidden costs chewing into your margins and how to plug them with simple fixes (plus how to track it all in NextMinute).

👉 See how NextMinute helps with tracking the financial health of yours jobs

1) Missed Minutes = Missed Money

The leak: Timesheets not done till Friday. Smoko not logged. Bit of a guess on time per job.

The cost: Just 10 mins a day per tradie = 16.7 hours/month if you’ve got a 5-person crew. At $85/hour, that’s $1,420 a month down the drain.

Plug it:

In NextMinute:

Mobile timesheets, cost rates per worker, weekly timesheet approvals.

2) Materials Creep and “Quick Trips”

The leak: Extra nails, blade changes, glue, last-minute runs to Placemakers or Mitre 10.

The cost: $20 here, $50 there — over 30 jobs a year that’s easily $2K+ gone.

Plug it:

In NextMinute:

Photo receipts, price book tracking, purchase orders logged to jobs.

3) “Can You Just…” Variations

The leak: Extra work the client thought was included. You’re trying to be helpful but not getting paid for it.

The cost: Labour and materials, out of your pocket.

Plug it:

  • Stop work when scope changes.
  • Send a quick variation note with cost and timeline.
  • Don’t restart till the client signs off.

Quick copy/paste for messages:

“Hi mate — we can do the extra [thing] for $[amount], and it’ll add [x days] to the job. Just click ‘approved’ and we’ll get onto it.”

In NextMinute:

Variation builder linked to quotes, approval log, job timeline updates.

4) Travel Time and Setup

The leak: Time on the road, loading gear, dump runs. All legit — but are they in your quote?

The cost: Easily 30–90 mins per job. That’s 10–15 hours a month.

Plug it:

  • Quote a standard travel/setup fee on every job.
  • Track site wrap-ups and tip runs as line items.

In NextMinute:

Preloaded quote templates, cost categories for travel, tip fees, setup.

5) Rework and Warranty Call-backs

The leak: Jobs rushed to finish, missing photos, sloppy specs. Now you’re back fixing it for free.

The cost: Free labour and materials, plus a dent to your rep.

Plug it:

  • Take photos at key stages
  • Do a clean handover with the client

In NextMinute:

Photo diary in the job, handover docs stored.

6) Under-recovering Overheads

The leak: Quoting with just materials + labour, forgetting admin, insurance, utes, laptops, GST, sick leave…

The cost: You’re busy as, but still broke.

Plug it:

Try out free labour calculator here

7) Invoicing Gaps and Payment Lags

The leak: Forgetting to send invoices, progress claims done late, chasing debtors by hand.

The cost: Slow cashflow, and some payments never show up.

Plug it:

  • Set progress claims with reminders
  • Invoice from real-time charges
  • Take deposits
  • Use auto reminders

In NextMinute:

Progress payments, invoice from timesheets/materials, Xero/MYOB sync.

Mini Case: Plugging the Leak in 60 Days

A 5-person crew started tracking every hour, quoting for travel/setup, locking variations, and invoicing weekly.

Before:

  • Late invoices
  • Guesswork on time
  • Frequent material run-arounds

After:

  • +$11,800 margin recovered in two months
  • Better cashflow
  • Happier clients

Quick Wins Checklist

  • Timesheets done daily on mobile
  • Price book updated fortnightly
    Variation template + client sign-off
  • Travel/setup in every quote
  • Pre-start checklist + photo diary
  • Proper recovery rate used in quoting
  • Invoices + reminders automated

Make Every Minute Pay

If you’re losing $10K a quarter to hidden costs, you’re not alone, but you don’t have to keep bleeding margin. Simple fixes and the right tools mean more time fishing and less time fixing.

👉 Start your free trial of NextMinute NZ

👉 View Pricing (NZD)

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Bonus webinar: Quoting and financial reporting made easy

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