If you’re a tradesperson trying to increase your profit margins, it might be worth exploring a few ways to save money on supplies. Of course, cheaper isn’t always better – use the wrong money saving methods, and you can end up compromising on quality. Fortunately, there are some ways in which you can still cut costs without cutting corners as these five tips prove…
Build relationships with local merchants
Good relationships with suppliers can sometimes lead to great discounts. If you pay on time and are easy to deal with, you could find that you have more negotiating power. It’s worth sticking to local merchants where possible to save money on shipping. If you do need to use a store that is based far away, consider whether you can open a trade account to access discounts. This could include exclusive discounts on certain supplies or even loyalty points that you can build up over time.
…but compare other merchants prices anyway
Don’t assume that loyalty will always save you money. It’s worth occasionally still shopping around to see what other suppliers are charging. When it comes to obscure parts and tools, it’s often worth looking for specialists who may charge cheaper prices (and have more options) than a general supplier. Getting different quotes will help you to work out what is truly a good deal and it may even allow you to ask for a price match from suppliers you trust.
Know when to buy in bulk
Buying supplies in bulk can unlock bulk discounts. For supplies that you frequently use, consider bulk buying. For example, if you’re a roofer that specialises in clay tile roofs, it might make sense to buy clay tiles in bulk if you know you’re going to use them on future projects. Just make sure that you have the storage space for these bulk supplies and that you store them properly to avoid damage. Supplies that spoil or degrade such as cement may not be worth bulk buying if there’s no guarantee you’ll use them in the next few months.
Explore alternative materials
Sometimes there may be alternative materials that work out cheaper to use without sacrificing quality. For example, when building a deck, you may save costs by looking into screw in ground foundations rather than using concrete. Cheaper alternative materials may even be able to save the customer money, while still providing better profit margins for yourself. Work with customers to explore these alternative options if they’re not already determined to use certain supplies.
Look after your tools and equipment
Many tools can be expensive to replace. Avoid losing these materials by always putting them away after use. To prevent theft of tools, keep your equipment somewhere secure – this could include locking tools in steel cupboards or using cameras to monitor toolsheds. Some companies paint the handles of their tools to deter thieves (it makes tracing these tools back to you easier), while it’s also possible to electronically tag valuable tools and track their GPS location.
