Looking to Increase Margins? Here are Some Tips from the Experts

By Trimble Contractor Work Zone.

In every industry, most businesses seek to increase their margins, but it takes a little more hard work than just raising prices.

The 2018 Commercial Construction Index indicated that more than half of contractors (54%) expected to see profits rise during 2019. This isn’t going to happen by bumping up your prices. It takes a coordinated effort to maximize all parts of your business in order to put a little extra money in the bank.

There are several things you can do to increase profit margins that will lead to improvements in the quality of your work and increase the value that you offer to customers. Price increases will naturally follow, leading to greater and greater profit margins. Here’s where to start:

Expenses – Expenses are a part of every business and you’ll never eliminate them, but you can be more efficient and reduce some of them. Take a look at the expense of time. Obviously, you need to spend a certain amount of time and resources managing your business. But there are ways to cut back on wasted time and money when it comes to things like paperwork. Using Contractor Workzone, can help streamline your operation and speed up the time it takes to do things like: make estimates and purchase orders, create quotes, sign agreements, keep track of work notes, and communicate with your team.

Buying Material – Cutting down on material expenses is another way to increase profit margins. Look for opportunities to get creative with how you buy and use material. But beware of using material that is so cheap it sacrifices quality, which in turn can harm your reputation and by extension, your profits.

Finding Partners – Partners can save you time and money and increase the quality of your work. A good supplier can save you money in the long run if they are a partner who works with you to provide guidance, streamline your efficiency, and help you become a better contractor. The same goes for finding solid subcontractor partners who can bring value and professionalism to your projects as opposed to speedy, but shoddy work.

Thinking ahead – Planning is critical when it comes to making more money. Anticipating road bumps and obstacles that your project or business might face helps you to recover more quickly or avoid them altogether. One way to help this is using a construction management app. Instead of relying on paper for all of your business workflows, you can easily have all of your business plans on a mobile device. It’s also important to think ahead about opportunities to grow and improve. Planning to take advantage of a new trend or field of work can maximize profits for years to come.

Efficiency on the job site – Being efficient on the job site is also key to increasing margins. Implement a system of working that maximizes productivity and organization and allows for a neat, clean job site. This can reduce and/or eliminate workplace injuries, mishaps, mistakes and the time it takes to deal with all those issues. The more efficient and organized your job site, the less time it’ll take to complete quality work that increases profits.

Get started maximizing efficiency and increasing margins when you learn more about Contractor Workzone and start your FREE 2-week trial today.

Source: Trimble