Have you ever gotten to the point where you think you’re about to go over budget? It can be very stressful because you want to give your client what they asked for for the price you promised. You may be wondering, “What’s the most cost-effective way contractors can stay on budget?” Here’s the answer: By choosing supplies carefully.
Buy ahead of time.
When you’re looking to stay on budget, you always want to buy your supplies ahead of time. Shopping ahead of time with a storefront or online wholesaler gives you the most options, ensuring that you can find the best prices. If you wait until the project has already started, you’re really stuck with the Big Box brick and mortar construction supply stores as options. While convenient, you’re going to spend more at these stores than you would online.
When you buy from a wholesaler, you have two options when it comes to being cost-effective: only buy what you need or buy in bulk. If you’re working on a unique project where it is unlikely you’ll use the material again, such as a specific type of tile, only buy what you need plus a little extra to account for pieces that come damaged. However, going with the tile example, if you’re working on a project with a super common tile choice, buy in bulk! You’ll have extra, but you can charge your client just for what you used and use the rest for the next project.
Evaluate your equipment.
Take a look at your equipment: are you using high-quality equipment? Low-quality equipment can be tempting for the price, but it will cost you more in the long run. For example, what if you are painting with a cheap compressor attachment and streaks are left everywhere? You will have to replace the attachment and completely redo what you were painting, costing you money and time. Or have you ever tried to drill with a low-quality drill or drill bits? It takes so much longer than it would with a high-quality tool. Investing in high-quality equipment up front will help save you time, money, and frustration later on.
You should also take some time to evaluate what equipment you are renting for your projects. How much money per year are you spending to rent a backhoe? Would it be cheaper just to buy one for your construction business? Like investing in high-quality tools, taking a look at these expenses and determining if it would be cheaper to buy can help save you money in the long run.
Give your clients their dream budget.
It’s always important to find cost-effective ways to stay on budget, but perhaps the most effective way contractors can stay on budget is to have a great budget to begin with. You can do this by offering financing with HFS Financial. We’ve provided home improvement financing since 2011, so we can help your clients get the budget of their dreams. All they have to do is fill out our 60-second application, and we’ll fit them with the right loan. Give us a call at 1-800-254-9560 to partner with us. “You Dream It, We Finance It”.