As the old saying goes, “You have to spend money to make money.” Owning a gutter and siding business comes with many unavoidable costs. But you might be thinking, “Can I bring costs down and still make money?” HFS Financial is here to help with five ways to keep costs down without sacrificing quality or customer service. Follow these tips to increase your profit margins while keeping your reputation “five stars.”
1. Bring Costs Down by Hiring Good Employees and Keeping Them Safe
Hiring the right employees can make all the financial difference in your business. (Read our blog for more information about how to hire the best employees.) Once you have a strong workforce, you need to make safety a top priority. The cost of workers’ compensation claims and replacement of absent workers can easily make profits take a nosedive.
Make an official safety policy and review it with your employees often. Reward employees every year they work for you without any accidents.
2. Bring Costs Down by Shopping Around
Try not to stick with the same supplier for years without doing a price comparison every once in a while. “Your guy” might not always be the best option price-wise.
The same goes for insurance. Look around every few years to make sure you are getting the best rates for your company’s needs.
3. Bring Costs Down by Buying in Bulk
You probably already know to stay away from big box home improvement retailers to save money on materials. But if you are already buying materials for one job, you might as well purchase enough for other jobs that will come up down the road. If you have a cool, dry place to store the extra material that you use often, buying in bulk can save you some major money.
4. Bring Costs Down Over Time by Investing in New Equipment
Have you ever thought about investing in your own gutter manufacturing machine? They can cost between $5,000 and $15,000 dollars. But with the right tax codes, you may be able to write off the cost of this equipment on your year-end taxes. Ask your tax advisor if this could be a good step for your business.
Manufacturing your own gutters could increase your profit quickly. Additionally, you would have more control over your own business, as you wouldn’t have to rely on ordering gutters from suppliers and waiting for the materials to come in.
5. Bring Costs Down by Preventing Human Error
Mistakes on a job site are part of life. The paint color could be wrong, a downspout could be too short, or the siding could be crooked. To reduce the costs associated with human error, try your best to catch them before they happen. If you can’t be present at every job, make sure to designate someone to be in charge of double-checking everyone’s work.
Get Quick and Easy Financing for Your Customers
We’ve got great news! Partnering with HFS Financial to provide contractor financing doesn’t cost you any extra money. It will only improve your customer satisfaction. You and your customers will be elated to know that the best options for gutter and siding financing are just a few clicks away. It all starts with our 60-second contractor application. Call our loan experts at 1-800-254-9560 to learn more. At HFS Financial, “You Dream It, We Finance It!”