The residential remodeling industry has become increasingly competitive because many customers are focused on saving money by finding low cost solutions. Subsequently, more and more low-priced competitors are entering the market. Focus on these five areas to help increase your business’s profitability:
- Reducing costs
- Contact vendors and suppliers annually to make sure you are getting the best terms and pricing.
- Maximize equipment by getting the most use of it and use existing tools before buying new.
- Selling add-ons
- Offer additional products or services (add-ons) so overhead stays constant and profits increase.
- Selling add-ons by offering financing to your customers also makes this much easier.
- Focus on value
- In any market, there can be only one low-cost leader, so focusing on value allows you to charge more. People are value sensitive and offering home improvement financing makes it easier for buyers to accept your price.
- Billing procedures
- Invoice customers immediately after the work is completed.
- Make sure invoice reflects ALL charges due.
- Tracking results
- Calculate the profit for every job.
- Create accountability at all levels of the company.
Implementing just one or two of these can help increase profitability in as little as 60 days. Making a solid profit is important especially if you want to grow your business. Once you’ve got a few of these down, you can offer financing to help close more sales! For more information on how Foundation Finance can help you offer your customers financing, please visit our website, call us at 855-241-0024 or email us at [email protected].
Read the full Remodeling article here.