How to increase your’s company earnings? This question gives some contractors sleepless nights. Very often we are looking for new providers, more profitable prices or optimization processes in company. In this article you will get 6 tips how to increase your incomes and earn more.
1. Mind own your margin
Calmly and carefully set out how much you have to sell in order to cover the costs and earn more. Remember that service, logistics and servcice costs should be 15% in total, if it is, it’s good for you and your company. Regardless of the deal is big or small.
If you will set out internal, long-term rules for you and your employees, it will help you to receive profitable incomes. Especially when client with big contract will come and negotiate the price under your break-even point.
Note your margin
Strict rules and written margin threshold will be a support for keeping the price on a level that allows to profability, development and quality of services.
2. Choose target group
Decide whether you specialize in auction’s service, installation on newly created facilities, joinery exchange or maybe you bet on institutional clients like developers.
Every segment of clients can have different expectations, accept different margin level, or reqiure various documents.
It is good for you to fit in one or maximally two groups of clients and offer them services suited to theirs needs. You will act ably, make transactions more efficiently.
3. Advertise and promote premium products.
Instead of leaflets with the cheapest PVC windows offers show an offer with alluminium premium windows in price similar to cheap alluminium. Instead of openable terrace present your clients HS sliding systems.
Difference between different prices of mentioned windows is quadruple!
On the same amount of done work you can earn four times more keeping identical percentage level of margin. Additionaly you will gain client who is ready to pay more. To sum up - you reap what you sow.
4. Value you services
Show to your clients that the price of installation is only a small percentage of his order. It’s better, more safely and cheaper to pay 50% more for your installation than broke a product that comprises 80% of the order price.
Nowadays clients are able to pay much more for high quality products, expert service than for a product.
5. Remember about realization terms
Execution delays cause that the margin is getting lower and lower and as a result you have to give a discounts. You have to explain to your client that for a good quality products he will have to wait a little bit longer.
Thanks to that you can avoid unnecessary complaints and frustraions. Argument is clear.
Experienced fitters have work planned a few weeks ahead. If someone offers short delivery date, it is possible that he has nothing to do. Why is it like that? An answer is clear, try to find it on your own.
6. Think about import joinery from Poland
Why ? Windows, doors, gates or shutters are 30-50% cheaper, even if you add delivery price to it.
Production terms are relatively quick – aproximate to those in your country.
Quality of products is often even better than “made in germany” because they are made on german components and standards but also with a use of new, modern machinery. CLICK HERE and read more about import joinery from Poland.
This is only a part of obvious changes, that will help you to improve your’s company results, in a short period of time. If you are reading this you are definitely a person who cares about your business development and you already know many usefull tips how to improve your results and earn more.