Whether your home improvement business is small, medium, or large, you are probably always looking for opportunities to save money. You’ll want your quality and customer service to stay excellent, though, because ruining your reputation will only cause more profit loss.
At HFS Financial, we want to help home improvement businesses like yours to thrive. That is why we’ve put together these five tips for reducing business costs without sacrificing quality and customer service.
Shop Around for Materials
If you have been using the same supplier for years, you might be paying too much for materials without even knowing it. Check with other suppliers a few times per year to make sure you’re getting the best deal on quality products.
Buy your products from wholesalers to avoid the middle-man markups at big box home improvement stores. And, if you have a clean, dry place to store extra materials, you could save money by buying in bulk.
Hire Competent Site Managers and Workers
Hiring a trusted site manager will lower the probability of having to redo something that was done incorrectly. For example, if a worker puts the wrong paint color on the cabinets, you will lose the cost of the first paint and the cost of the hours it takes for your worker to repaint it. Train your site manager to ensure that every aspect of the home improvement project is done correctly the first time. To hire loyal, experienced managers and workers, check out these tips for smart hiring.
Improve Site Efficiency
To improve efficiency on your jobsite, assess whether your tools or equipment are the most appropriate for the project. For example, if you do outdoor home improvement, it might be worth it to invest in a skid steer rather than having employees dig with shovels. Or maybe you would only use a skid steer a few times a year, in which case it would be smarter to rent one when you need it.
When it comes to tools, you might think you’re saving money by never replacing them, but think about how much newer, more innovative tools could speed up your construction timeline.
Another way to make your job sites more efficient is to recycle materials whenever possible.
Stipulate for Change Orders in the Contract
One reason home improvement businesses sometimes lose profit is due to changes in the project after it’s already started. Make sure your contract agreement includes a strict policy for change orders. Your customer should expect to pay for the cost of any changes to their renovation. This way, you won’t lose money, and they won’t feel blindsided by a bigger bill in the end.
Partner with HFS Financial for Contractor Financing
Offering contractor financing is a great way to attract new customers without spending any more money. When you partner with HFS Financial, we will help your customers to find the best loan options with the lowest interest rates. Additionally, their loan will be funded 100% up front, so you won’t have to waste time and money waiting on stage funding from a bank. When it comes to home improvement contractors, at HFS Financial, “You Dream It, We Finance It!”