How to easily build profit pillars in your contracting business!
I see so many contractors miss the opportunity to make more money because they walk around with blinders on or have this idea that this is all I no and all I can do attitude. Horse dodo.
I like to think of profit pillars as a diving board. Right now you have one main profit pillar that holds up your diving board. The main problem with this is that you have only one way to profit. Now think about when the only profit pillar you have slows down, now your in trouble. Right?
Let’s take a look at a company with several profit pillars so you can get some ideas. Now this company is in the manufactured home contracting business. When the company started in Florida all they did was the outside packages for the manufactured home dealer. Carports,screen rooms, utility sheds. Any and everything else was subcontracted out to other vendors.
Now let’s take a look at the big picture here. If you were the dealer and had a choice of working with 12 different vendors or the choice of working with just one, which would you pick? Just the one right? Right!
Now let’s get back to the diving board profit pillars and see how this company added more pillars to there bottom line.
Pillar one:First they got a set up license to set the home.
Pillar two: They started to do all the concrete work for driveways and sidewalks.
Pillar three: They started to do all the masonry work. Skirting and planters.
Pillar four: All the carports, screen rooms, utility sheds they had always done.
Pillar five: They opened a retail store to provide products and installations to the client that bought the home from the dealer.
Pillar six: They coordinated for the dealer to have all the water, electric, A/C, grading of the lot and sod and landscape done for a fixed price per lot with the dealer.
They called this there “Turn Key Solutions” . the dealers loved this because now all they had to deal with was one company.
This company went from sales of 1 million a year to 8 million a year in no time. They were the go to company in there field and they did work for a lot of dealers.
So they stayed within there niche but they took a broader approach and expanded there profit pillars.
Now take the time to look at your company and think what profit pillars can you add to your contracting company. How many other companies do you no that do this? Think about it?
When you bought your last truck did they offer other accessories? Bed liner? Under coating, Extended warranty, Clear coating? Ladder rack? Etc.
When you bought your last suit? Did they offer shoes, shirt, tie, cuff links? Etc.
By now you should get my drift on how to add profit pillars to your business. Take the leap to more profit.
Happy Selling
Glen
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