The economy isn’t always on our side and that makes it tough to function and prosper as an individual remodeling contractor or small business owner. Some pros are feeling the pinch from homeowners who are hesitant to spend money fixing up their homes or experiencing the beginning of the slow season.
With winter coming up, it literally pays to have some cost saving options. See practical money-saving methods for all contractors below. Then, when you’re ready to get more homeowner leads, give us a call at 866-456-6977.
Purchasing items like cabinets, windows, doors and flooring at wholesale puts you in the proverbial driver’s seat in terms of earning a profit. This will save you money in the long run compared to buying materials per job. You’ll receive your products at a great discounted rate, with the ability for you to charge full market value, plus the price of installation, with your clients.
Many suppliers offer a builder’s discount, but you need to ask for it. When you begin shopping, ask the lumberyard, the electrical supply store or the plumbing supply house if they offer this particular discount. Another important cost-saving option you should confirm with your supplier is if they offer free shipping. Establish their shipping policy up front, and if it’s not free, confirm the exact charges ahead of time. The timing of your delivery is also important to your wallet because if materials are delivered too early, they’re subject to theft and if delivered too late, the project will be delayed.
Use Social Media For Networking, Promotion & Customer Service
Social media is a free tool small businesses should take advantage of to promote their business, network and answer customer questions. Sure, you always have the option of paid advertising, but why not participate in this free option too?
Doing business online is a smart move because it’s efficient and convenient. It’s a great way to connect with consumers and get your name out there. If your marketing budget is tight or non-existent, definitely start building out your business pages on platforms like Facebook and LinkedIn. If you can get customer questions or issues resolved before they escalate, this will also save you money over time.
Buy Used & Refurbish
There’s nothing wrong with a used or revamped tool, as long as it still gets the job done. It may take you a little more time finding exactly what you need, but the cost savings will be worth it. Be honest with yourself about what items you need new and what you can buy reused or refurbish.
You should be concerned and aware of what tools are going in and out of your building, as well as on the job site. Put identifying marks on major tools and keep accurate records. Other money-saving ideas include, centralizing tool storage, installing a check-out system and cutting the number of tools owned by the company.
Go Green To Save Green
As a contractor, I’m sure you look for ways to help your customers save money and implement green construction solutions when possible. You should do the same with your business. Are you paying a lot in rent for a large building that accumulates expensive energy bills? Consider moving to a smaller space or doing an energy audit on your office building and fixing any water leaks.
Instead of purchasing new equipment, overhaul what already exists. Switch to energy-efficient lighting, plug electronics into power strips, use paperless billing and invoicing and carpool to job sites. Rent, borrow and reuse too. Reusing items helps us make the best use of resources to create those products, whether it’s energy, wood, metals or other raw materials. These are all great ways to go green and save green.
Actively Manage Your Finances
No matter how small, review all of your expenses thoroughly and regularly. See the many benefits of hiring an accountant and why working with one has the potential to save you a lot of money, including on your taxes. As far as insurance goes, get quotes with comparable specifications and review your policies annually. It’s also good practice to check for areas in which you are over-insured, because it does happen. Instead of waiting for bills to come to you, become an active player in the review process, analyze where you can cut costs and implement saving strategies.
At the end of the day it’s up to you to how you want to run your business, but I think we all agree that saving money is a top priority for most businesses. Hopefully, this article at least motivated you to start thinking about your own business plan and policies and identify areas where you can improve. These money-saving methods for all contractors have the potential to not only keep you in business longer, but to stabilize and grow your business for the future too!