 Hi, I'm Tom Stewart with Cleaning Business Today and for today's KPI tip, we're going to be talking about direct labor as a percent to sale. We talk about direct labor. What we mean is the amount of money that you pay the people who are actually cleaning for you. This is the dollars that go to the to the staff that are cleaning homes or offices or whatever it is you might be cleaning. This is a very important number to try because direct labor is your largest expense category and one that you want to manage on a weekly basis. To get at your direct labor, most people don't have an accounting system. A lot of times you don't have an accounting system set up where you can easily track that, but we can all get our total payroll for a week either out of our accounting package or from the people that do our payroll for us if we outsource that. It's usually easier to take that total payroll dollar and subtract from that the people who aren't cleaning every day. We call that our indirect payroll. That could be management supervision, office staff, anybody who's not cleaning. That number oftentimes is constant weekend and week out. In this case, we're going to use an example where a total payroll is $5,450. We're going to assume that our indirect payroll was $800 for that week. And I just take one and subtract it from the other and it gives me a direct payroll of $4,650. Now, I want to take that number, divide it by my weekly revenue. In our example here, we're assuming our weekly revenue is $10,245. So, I take the $4650, divide it by the $10,245 in this formula here and it gives me a direct payroll to sale of 45.39%. We want to look at another week. We just did another example here, made up some numbers. You notice that the indirect is constant, it stayed the same. The payroll was a little bit more this week, direct payroll, but lucky here, the weekly revenue was a little bit higher that week. And the percentage came in at 46% in change. If you track your direct labor payroll as a percent to sale weekend and week out and manage your business in a way where you can keep this percentage here in this column constant and implement scheduling efficiencies and other things where you're constantly trying to manage that and keep this number as low as you can, you'll find that you're making a whole lot more money off of whatever you find yourself cleaning weekend and week out. Hope that you find this KPI tip helpful. Thank you for watching Cleaning Business Today.