How contractors can add new products for maximum profit!
I see a lot of contractors sell only one product or offer one type of service. I must ask myself is this a wise choice?
So, I went on the hunt to find out the good and bad of making this choice. I started out with my partner Josh which is in the seamless gutter business.
After talking with Josh he does only handle one product ,gutter. But within his product choice he has up sells that he can offer. He has Leaf proof gutter guard. He has gutter edge. Plus he does fascia overhang restoration.
So when you add it up he has 4 different product or services he has to offer his client. Plus he has 4 profit centers.
Now, with Josh being a young pup there are several more products he could add. He could add replacement windows,vinyl siding,outside decks and even roofing if he wanted to.
But when you add this to the product mix you also add more to the cost of doing business. You have more subcontractors or employees and more overhead. Plus you may add a few more gray hairs.
Some people are satisfied with a no hassle type of business. Yes, you still have some headaches but they are limited.
I checked with a close friend of mine that sells window film. Now he has been in this type of business for over 20 years. When he started he only did all types of vehicles.
He only did retail work and he had a nice store and he did a ton of business. Randy and his wife Susan are go getters and they work hard. Susan did the counter sales and Randy handled all the install work.
They made a nice living but Randy always wanted more work. I used to love to brain storm with Randy and in doing so we came up with adding several more services within his own niche. He added new car dealers and he started installing film on clients homes and business.
This has taken Randy’s business to the next level. He has tripled his sales but he only had to add 3 more employees to his overhead.
The other thing we set out to do for Randy and Susan was to set a pace and course for them to be able to sell there business in the future. They decided to sell there retail and dealer part of the business. This would leave them with homes and business because they wanted to slow down some and enjoy there children.
They are happy now and enjoy more freedom plus they added to there retirement nest egg.
So think about your type of contracting business and see how adding to your products or services.
If you liked this post then share it with other contractors and subscribe to my RSS feed.
Happy Selling
Glen Kohlenberg
Comments on this entry are closed.