If you are buying supplies and materials retail, especially building materials, you are getting killed at your profit line. You don’t want to buy retail; you want to buy from the same wholesalers your retailers are buying from before they mark up your product purchases by 20% ? 30%, or more. It is worth your time to find these profit generating relationships with key wholesalers both in your local area and others nationally that will ship goods to you.
As the owner of a Restoration Company I used to get killed on replacing flooring. I just couldn’t figure it out and I lost money on nearly every flooring job we did. One day I finally decided to figure it out, and I did. I found direct wholesale buying for all flooring products that is nearly 50% below retail. These are the same sources your retailers are buying from. Many flooring wholesalers do not sell directly to restoration companies. I discovered the ways to resolve this and increased my purchasing power and improved my net profit, on every job. I bought materials from local and national sources typically open only to brick and mortar retail stores. I learned how to acquire wholesale accounts with these suppliers and found it to be one of the easiest and fastest ways to increase my profits across the board on all water and fire damage repair.
Once I accomplished this, I danced every time my company got a job involving flooring which for nearly every job is the largest single cost item on the estimate. Did you know Home Depot and Lowe's provided 7% discounted buying for all your material sundries. If you make a larger purchase of $1,000+ you get special bid-room pricing that adds even more to your profit savings, and you will get a quarterly rebate check too. Paint programs through Sherwin Williams, Home Depot and Lowe's provide further savings. If Lowe's is offering a 10% volume discount take that to Sherwin Williams and ask if they can beat it. Do this back and forth until you get YOUR best deal possible. Check every 6 months to see if your volume increase warrants a pricing improvement. Owners - when you start thinking about profit improvement and protection and not just about getting the job done you will be surprised at the ways you can save money and increase your profits. Remember - in the end, it is not about how much money you make in sales, but how much you keep in profit. That money improves cash flow, provides larger cash reserves, and contributes to your personal wealth building. Increasing profits is vital to growing your restoration business!
Reference: 6-Month Coaching Plan - The Profit Maker: Make More Money than Ever Before Managing Your Business Like A Pro! You can subscribe and receive our weekly blogs in your email inbox at http://growmyrestorationbusiness.com/blog/ - scroll to bottom of the page.