A sad reality for many contractors in the construction or remodeling field is that their business isn't thriving or producing the profit it should be. There could be a number of reasons for this, such as a lack of business planning or even undercharging clients. Seeing your siding business struggle to stay afloat is disheartening, but majority of low-profit contracting companies can come out on top by integrating new changes.
Here are 5 ways siding contractors can increase profit:
Expand Your Services to Include Custom Siding Design
When submitting bids for client projects you'll find that directly behind pricing limits clients will want to see what makes your service different than the competition. This can be difficult for siding contractors to accomplish since siding installation is such a straightforward process that doesn't always allow for creativity. However, you can still put yourself out on top as a premier company to work with by offering something different like custom wood siding.
While there may not be a huge customer base for custom wood siding designs or patterns, being able to accomplish a more artistic approach reassures clients that simple installations will be done perfectly based on your skills with more intensive projects. There is a demand for this niche especially now with more clients are now into contemporary home design. Whether you want to focus on minimalistic eco-friendly wooden home exteriors or even mid century modern siding, there will always be a good amount of clients out there who want a custom siding design. Clients wanting custom siding designs will pay more and regular clients will find your business a more attractive option, making this a win-win all around.
Consider Providing an Alternative Siding Material
One of the best ways of increase profit and ensuring business success is to keep an eye on trends and your competition. If your siding business focuses on wood siding but you've noticed an increase in demand for other types you may considering expanding your options. By doing a little research you may find that there aren't even any contractors providing a type of siding that is growing in popularity, allowing you to get ahead of the competition.
For example, fiber cement siding is becoming more popular for homeowners that want something very durable and long lasting but low maintenance. If there are no or few contractors that offer this siding you can easily position you and your crew as fiber cement siding experts. There are certainly some contractors that succeed by focusing on only one type of siding but offering some siding options means you can tap into a different client pool.
Ensure Your Web Presence Focuses on Your Region
Running your own business as a siding contractor is great but it does mean you need to stay on top of changes in how businesses are run. A great example of this is how the internet has become essentially the go-to source for homeowners to find contractors. If you don't have a professionally designed, clean website that clearly promotes you as an authority you need to do this ASAP.
Equally as important as a stunning website is ensuring your web presence makes it clear where your business is located and what regions your serve. Using local SEO strategies in your online marketing campaign is vital for this reason. Essentially major search engines like Google need to know who you are as well as where you are, so if a prospect searches for siding contractors in your city you will be at the top.
Partner with Complementing Businesses as an Affiliate
As a siding contractor you probably don't do other remodeling work, but you may find yourself working on jobsites where the homeowners probably has other projects they do need done. For example, if your client is getting their home completely resided chances are they may also be interested in landscaping services to finish up the beautifying of their home's exterior.
You can partner with other local businesses and by recommending them to your clients you can earn a potential affiliate commission. Going back to the landscaping example, do your own research into who is the best of the best in your region and contact them regarding a partnership. This can go both ways so it makes it an enticing proposition. You can help complementing but non-competing businesses find more clients and vice versa.
Focus on Improving Your Crew's Efficiency and Training
Too many siding contractors hire a quality crew but don't continue training them or managing them after they're taken on. This is one way you may actually be missing out on profit without realizing. After winning a bid on a job the focus is to complete the job as quickly as possible, get paid, and move onto the next project. In order to do this your crew must be working efficiently, with clear jobs for each person (playing to their strengths and knowledge) to do on site. As a business owner you must also manage your crew's time, planning at least a day ahead, to reduce time spent waiting.
Get your crew working as efficiently as possible, reduce time spent idle, and keep up their training when it comes to improving siding handling, installation and finishing. With a focused crew that works quickly and professionally you can even offer Early Completion bonus options to clients. This means you can get paid a bonus if your crew completes the job ahead of schedule.
Successfully managing a business as a siding contractor isn't without its obstacles. By focusing on maintaining quality client-contractor relationships, avoiding low paying bids, and putting your mind to investing in the growth of your business you can succeed while also making higher profit.