The goal of any business should be to maximize profit in any way. Cutting costs is one way to accomplish this. Increasing production is another. Real Estate Construction is no different than any business in these basic practices. These fundamentals apply for a builder whether you are building a home, a residential development, a commercial building, or a large scale project. The goal is to save money and increase your profit. Here are three ways that a builder can do this.
Decrease Cost of Materials and Supplies
You may say you are already doing this. You're getting the biggest discount possible at a large national chain store. You feel confident that you are getting quality materials because your supplier is known nationwide. You know you are getting the best deal because you talk to other local contractors and you know what deal they are getting.
If you're ready to take your business to the next level and destroy your competition, you'll go the next step. It's so easy and obvious, but not many companies do this.
Buy directly from the supplier.
The "big-box" stores don't manufacture all that stuff themselves. They buy it. They count on nationally recognized suppliers that have decades of experience in this business. They buy the materials from this nationally recognized supply company and mark-up the price. They then sell it to you, giving you a discount from their marked-up price.
What are you doing? Buy it direct from the source and skip the mark-up. You'll get the best prices you could have dreamed.
Another way to save money is to buy your materials on credit. Pay for them when the job is complete and when you get your paycheck. The basic money principal applies: money in your pockets is much better than in someone else's. Delaying payment may give you an opportunity to earn interest or have the buying power for other things.
Decrease Cost of Labor
Everyday you spend on the job site is another chunk of hours paid out to all your valuable employees. You try to economize the best you can by keeping only the necessary hands on the job. The best way to lower your costs is to simply reduce the number of days on the job.
Wouldn't it be nice if you had an industry genious with 25 years experience to look over the blueprints and suggest ways to get it done more efficiently? When a supply company gives you materials on credit, it gives them great motivation to assist you in getting to your Certificate of Occupation as quickly as possible.
Increase Production
This is where we knock off two birds with our one stone. In getting the job done quicker and getting your guys off the site, you can move them elsewhere. Take on a new job and get rolling. This is where you see the results the most. Your income will explode if you have the ability to complete more jobs than you could have otherwise. This is how we can help you move from #2, #3, or #10 to Top Dog in your area.
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