Homeowners are willing to spend big bucks to get repairs and remodels of their dreams.
While the demand for home remodels is high, it doesn’t mean it’s easy to make a lot of money. If you’re not careful, your labor and material costs could easily eat up most, if not all, the money homeowners pay you.
If you are looking to improve your profit margins, you’re in the right place. Keep reading for five easy ways for your remodeling business to increase revenue.
1. Increase Service Costs
There is no way around it: raising how much you charge for a remodel is the best way to increase profit. If you don’t price your services correctly, you will feel like you are constantly chasing the next client to make ends meet.
Not charging enough means you will constantly need a supply of new customers, which often is not realistic.
Avoid lowering prices to “attract more customers.” This is a dangerous strategy that could negatively impact your sustainability.
Show your customers value and you will be able to charge more.
2. Upsell Customers
In addition to, or in lieu of strictly raising what you charge for your services, you can also increase your bottom line by selling accessories or other products to an existing client.
This can include service warranties or regularly needed items like pool filters or cleaning products. You can also offer add-on services like window cleaning, pool maintenance, or even pest control.
As another example, the folks at www.granitefabricatordirect.net offer free sealants and sinks when a certain amount is spent. This provides opportunities to give more value to customers while increasing overall sales.
You have a high chance of a current client saying yes to these extras because they already trust you and love your prior work.
3. Trim Down Costs to Increase Revenue
Cutting down your costs is another action to take to improve your bottom line. This is a good route to take in order to minimize charging your customers more.
One way to keep costs low is to do regular checks on the vendors you receive parts from. It is a good idea to research any competitors every few months to ensure you are getting a good price.
Always be sure to use tools, parts, and materials you already have before spending money on new.
4. Proper Billing
If you don’t have a solid billing process, you likely are missing out on tons of money. A common problem is not including all the charges on an invoice sent to a customer.
If you have a billing department, make sure they understand all your services. A good idea is to create a thorough training webinar or course to ensure every billing employee is on the same page.
5. Track Results and Outcomes
This is an important step that is often skipped. To truly know how your business is doing, you need to know how much profit each job creates. This will allow you to make adjustments quickly.
Follow These Tips to Ensure Long-term Success
With these five tips, you are ready to watch your profits grow. No matter what your specialty or how much business you currently have, taking even just a few of these steps will increase revenue for your business.
If you are looking for other ways to improve your business, be sure to check out our blog full of marketing tips and tricks!