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Easy Ways to Lower Costs at Your Home Improvement Business
With prices creeping up across the board, it’s more important than ever to reduce costs in your home improvement business.
As an industry that relies so heavily on prices of both materials and labor, price creeping can have a drastic effect on your home improvement business's bottom line.
Luckily, there are ways to reduce your costs without affecting the quality of your work, the happiness of your team, and the satisfaction of your customers.
You just need to know the right steps. This article will delve into some of the most creative and practical ways to reduce costs for materials, labor, and operations.
Shop Around For Materials
It takes up time, sure, but shopping for materials often pays off in the form of lower costs and higher margins. Here’s how to do it effectively:
- Find out what materials are available in your area
First, look at what kinds of materials are available in your area. Even if you think you know, there may be a new supplier in town willing to give you a discount for some word-of-mouth.
This can help you get a sense of what kind of options there are, and whether or not they'll be able to meet your needs.
- Look for promotions
Promotions are a great way to save money on home improvement projects because they offer discounts on high-end products that might otherwise be too expensive for some people. This means you can either save money on a project or upsell to an existing customer.
Before starting any project, check out local stores' websites and social media pages to see if they're running any promotions on the type of product or material you're planning to buy!
- Shop online
Online orders are often cheaper than going to an actual store, so be sure to check with your usual supplier’s websites to see if they offer lower prices.
You can often time deliveries to save on storage/transporting costs as well.
Find The Right Talent
When looking for contractors, there are two main things to keep in mind:
1) What kind of work do they specialize in?
2) What is their reputation like?
When choosing a contractor, you want to make sure that they have experience doing the type of work you need done. If you're looking for someone who specializes in laying hardwood floors, then it'd probably be best to avoid hiring someone who only works with tile.
Consider giving them a test of some kind. For example, if a potential contractor will be largely responsible for cutting countertop granite, give him or her an off-cut to demonstrate that they know what they are doing.
You'll also want to find out what their reputation is like among other homeowners and industry professionals. This can let you know if they've had issues with previous clients or if they've been known for doing quality work on time and within budget.
It sounds a little Orwellian, but it can’t hurt to check their social media accounts as well, just to ensure that they aren’t crazy.
Once you've chosen a few contractors that seem like they might be a good fit for your project, set up interviews or meetings with them so that you can get an idea of how well they communicate and if there are any areas where they could improve their work processes or techniques.
Having the right talent means fewer mistakes,
Invest In Insurance
While it is technically another cost, Insurance for your home improvement business is a must.
Here are some reasons why you should buy insurance for your home improvement business:
- It's the law: Depending on where you live, there may be laws requiring certain types of insurance for contractors and other businesses that deal with homes. In many cases, not having the required coverage can result in steep fines or even jail time. Make sure to check with your state and local government before starting your business - or check the laws in any new markets - to get an idea of what kind of insurance requirements they have in place and how they might affect you.
- It protects against liability: If something goes wrong while you're working on someone else's property—whether it's an accidental injury or damage caused by faulty materials—insurance can cover any costs associated with the incident. This includes legal fees if someone sues you over their injuries or property damage caused by improper installation of their new windows or siding!
- It can save money on taxes: If you do have a policy covering liability issues like those mentioned above, then those expenses may be tax deductible!
While insurance will cost you a monthly or quarterly premium, it’s an investment that might save you hundreds of thousands of dollars down the line.
Find The Right Tools For Cheaper
When it comes down to it, there are a lot of tools out there that you need for your business—and they're not all cheap. So how can you find the right tools for cheap? Well, here are some tips:
1. Research the market before buying anything
2. Look for used items on Craigslist or Facebook Marketplace
3. Buy from a company that allows returns or exchanges if something doesn't work out
4. Don't limit yourself to companies just because they're well-known—there are plenty of smaller companies that offer quality products at competitive prices
Lowering your cost per tool allows you to allocate more money when it’s really important to - like renting a specialized tool for a custom job.
Providing the right array of tools can reduce mistakes and give your team the means to do a job right on the first try.
Use Marketing Tools Effectively
Marketing your business doesn’t need to be expensive. One of the best ways you can make your marketing simultaneously cheaper and more effective is by utilizing text marketing.
Text messages are a great way to connect with your clients and keep them up-to-date on the latest happenings at your home improvement business.
Here's how to use text messaging marketing for a home improvement business:
1. Send out a "text us" link to your list of clients on your existing marketing materials.
2. Once you build up a text list, use automated texts that send out regularly scheduled news about new products and services, sales, and special events.
3. Send out personalized texts with helpful information about specific things your customers might need, like tips on fixing up their homes themselves, or even reminders about appointments they've made with you!
Your text messaging service should also allow potential or existing clients to reach out to you for pricing information or appointment booking.
Text message marketing is extremely cheap, and, because the smartphone is now an extension of self for most people, it’s very effective.
By implementing these methods, you can reduce costs at your home improvement business without reducing customer or team member satisfaction!
Grab some more ideas to level up your business in our free ebook, "Google My Business: The Playbook."