Times were tough, so Remodeler John decided to lower prices below those of his competitors. He promoted a charge-out rate 20% below the industry average, explaining that his overheads were lower than those of larger companies.
The turning point came after advice from his mentor. "You're selling yourself short, John," said the mentor. "With your qualifications and experience, you should charge at least as much as other businesses – if not more. I understand your marketing strategy, but I don't think clients see it that way. They are more likely to interpret lower costs as lower value and quality. In your industry, confidence goes a long way, so you shouldn't be afraid of marketing yourself at a price that reflects your expertise and experience."
Then came the call from his accountant. "Aren't the sales figures great?" said John, getting his bit in first. "Yes," said the accountant, "impressive sales indeed. That's the good news. The bad news is that the business has actually lost money over the last quarter."
This was how John learned that trading for sales and trading for profit could be different. Chasing sales revenue is fine, provided your prices give you a sustainable profit. John hadn't checked his costs for some time, so the unwelcome news from the accountant came as a shock.
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Topics:
Growth Coach,
Bookkeeping For Remodel Contractors,
Remodel Contractor Coach,
Profit and Growth Strategies For Contractors,
High Profit Repeat Construction Clients,
Bookkeeping Services,
Pricing Jobs,
Trading for Profit,
Trading for Sales
Starting a new construction business is exciting but has its fair share of responsibilities. One of the most critical responsibilities is maintaining accurate records of your business transactions. From saving receipts to processing employee payroll, every money-related detail should be documented. It's not just about keeping things tidy; it's about understanding the financial health of your business and meeting all your tax obligations.
Don't underestimate the basics
Some small businesses continue to rely on traditional systems, like pen, paper, and a trusty shoebox. Although it may seem outdated, this method can work well for businesses with few transactions. These businesses might not have the latest payment technology and could be invoicing customers or receiving immediate cash or cheque payments. In such cases, they must maintain a record of all receipts, past, present, and future jobs, and a log of their customers and transactions.
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Topics:
Restarting Contractors,
Start Construction Company,
Growth Coach,
Contractor Startup,
Construction Company Startup Tips,
Grow Your Construction Business
Once your construction business is up and running, it’s essential not to rest on your laurels. Successful business owners always look for ways to grow and maximize their profits. We’ve compiled a guide and checklist to help you identify ways to get the most out of your contracting company.
1. Grow your sales
Contact your best clients.
One of the easiest ways to increase sales is to sell more to your existing clients. For example, you could try contacting every customer and offering a complementary product or service they might need now. You could also determine when clients need maintenance checks.
Create a client loyalty scheme.
You’re looking to create a customer care program using customer contact software and implementing a customer loyalty scheme.
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Topics:
Growth Coach,
Profit and Growth Strategies For Contractors,
Construction Business Interest Rates,
Grow Your Construction Business
Every So Often Someone Comes Along That We Just Have To Promote
Pamela Jackson - Is one of those people. I have known Pamela for roughly a year and have met here at a variety of networking events in the Seattle Metro Area. There are coaches and then there are coaches. Every one of them has a niche and some are better defined than others.
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Topics:
The Growth Coach Pamela Jackson,
Growth Coach,
Pamela Jackson
