Best Way to Profit
Almost all contractors and sub trades are looking for ways to make more profit. One of the best ways to do so is to reduce your cost. Sounds simple enough, yet everyone struggles with how. Here is one secret....
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March 20, 2012 by Robert Koci
Almost all contractors and sub trades are looking for ways to make more profit. One of the best ways to do so is to reduce your cost. Sounds simple enough, yet everyone struggles with how. Here is one secret….
Reducing cost of a job is one of the best ways to increase profit. To reduce cost you need to be able to do something faster than you are doing it today as time is money. You might be thinking well, if it takes me 5 hours to do a task instead of 4 my costs haven’t really gone up. It is just my time and I make the same amount. It is true your costs haven’t really gone up but you have taken longer than needed to complete something which means you are not available to work on another project that could be earning you money as well.
So every hour that you save can be used to do another job. Think about it, if you could save 4 hours per week, you would have another 200 hours per year or 5 more weeks for more paid work.
Everybody can find ways to be more productive, it just takes some discipline. Take a good hard look at what you are doing and how you are doing it and you will find that you can save at least 4 hours per week. Even saving one trip back to the “store” each week could save you half of this time. If your employees are making the extra trips then your costs are really going up. You might even have trades waiting on the job site for materials to be delivered. That is more time and therefore money wasted.
Eliminate busy work and make sure that you and your employees are doing productive work. You will complete the project faster and you will make more profit.