Tuesday 6 November 2018

Grow Your Business by Making Killer Profits on Flooring

Posted by at 9:00 AM in

Many contractors are afraid of flooring. They don’t like doing it, and so they walk away from it. They sub it out to local flooring contractors for little profit instead of learning how to make killer profits every time. Why are they afraid … why do they give it up … why do they accept low profits … because they haven’t figured out what it takes to make significant profits on flooring. The average cost for an insurance damage repair rebuild is approximately $10,000, and flooring typically represents nearly one-third of the total repair bill. Think of that, over $3,000 of charges for equipment, material, and labor for flooring. That’s a considerable percentage of the whole. If you give it away to a local retailer, you lose the single largest profit maker on the job.

Stop doing that! Here are 3 essential keys to understanding how to earn killer profits on flooring:

KEY #1 – Every time you send a customer to a retailer you forfeit your profit potential. The customer will spend every cent of their material allotment leaving zero profit for you. Your customer will spend the entire material allowance and then some, every time!! You know this is true. If they have $2.24 sf they will spend every penny of that and another nickel, and you will make nothing on the purchase.

KEY # 2 – The only way to make killer profits on flooring is to take the showroom to the customer. When you take the showroom to the customer, the focus is not on price but on value and selections. If you present 3 - 5 presentation boards with 5 textures and 50 colors and each is the like-kind-and-quality (LKQ) equivalent of FCC AV the customer may choose from your broad array of selections.  With the selections available they will be confident they have as many picks to choose from as they do from the local retailer. The focus is on choice and variety, not price. You can in turn purchase that selection from a wholesaler at 50% below Xactimate pricing and make killer profits.

KEY # 3 – The source of your presentation boards are superior national restoration wholesale distributors who sell flooring at deeply discounted prices providing you with killer profits. You can buy your flooring material from the same national wholesalers your retailers are buying from before they mark up the material and take ALL your profit. One national wholesaler sells AV tile at a 60% discount below Xactimate prices. Think of your potential profit on a large tile job - it would be gigantic! One of my client contractors recently told me that through their substantial material savings and proper controls on labor he made a 70% profit on a large carpet job. Absolutely outrageous - but true! What these contractors achieved you can too, and you can do it every time on every flooring job you have. Introducing you to these national wholesalers for the restoration industry is only one of the many ways I save my contractors money and increase their profits on every job, every time!

Reference: 6-Month Coaching Plan – The Profit Maker: Make More Money Than Ever Before Managing Your Business Like A Pro! http://growmyrestorationbusiness.com/successes