As a general contractor, you know that the cost of doing business can be expensive. Accruing these costly business expenses can eat into your profit. So how can you keep costs low while maintaining a high-caliber product? Read here for 6 ways general contractor businesses can keep costs down without sacrificing quality and customer service.
Keep Your Overhead Low
Do you have any unnecessary expenses? Make sure you are mindful of your overhead expenses and keep them as low as possible. This includes rent, utilities, and equipment that you may not need. Evaluate what you can do without and cut those costs as a start. Eliminating waste ultimately means keeping costs down. Further, look for inefficiencies or create processes that utilize fewer resources.
Cost-Effective Purchasing
Every purchase your company makes can impact your budget either positively or negatively. Follow the Goldilocks rules of thumb: not too much, not too little, but just right. This means be diligent to do precise math and estimates to ensure you’re ordering the correct amount of material.
Negotiate Better Prices
One of the simplest ways to reduce cost is by negotiating better prices with your vendors. This can be done by forming a long-term relationship or leveraging your purchasing power. Either way, make sure you are getting the best price possible for every transaction. It never hurts to at least ask what they can offer you.
Stay on Schedule
By staying on schedule, you receive several benefits. First, the customer is satisfied and willing to share their pleasant experience with others, resulting in more work for you. Customer service is a pivotal piece to your business. Second, staying on schedule means reaching the final pay day as expected. Finally, if you stay on schedule, you can move on to the next project and the next payday more quickly. If there is a delay in schedule, be sure to keep top-notch customer service by having clear and frequent communication. The more the customer knows, the more satisfied they will be even when there is a bump in the road.
The Right Man for the Job
Whether it’s your employee or a subcontractor, make sure you hire the right people with the right skills to complete the job. Doing so will greatly improve quality control and customer service. Having someone without the right know-how will delay your job. It may even mean having a second person come to complete the assignment correctly. Get it right the first time by hiring the right person.
Offer Financing with HFS Financial
When you offer financing with HFS Financial, you get paid without any delay from this bank. Offer the best contractor financing to your customers for any home improvement project and no stage funding. Using financing with HFS Financial leaves your customer, your business, and your wallet satisfied. If you build it, it is likely we have financing for it.
HFS Financial specializes in partnering with general contractor businesses for customer financing. As the industry leader in home improvement financing, you will be glad you took this step for your business. For more on how to offer financing to your customers through HFS Financial, contact us today! “You Dream It, We Finance It.”