How Paving Companies Can Increase Their Profits
Running a parking lot paving company is hard work. It is not always easy to set your prices and create a workflow that not only results in the work getting done on time but also allows you to earn a profit. If you're struggling in this regard, here are a few tips that can help your paving business increase its profits.
Charge for labor by the hour
Are you currently quoting jobs by the project? Chances are, some of them end up taking more time than you planned. There are so many unexpected problems you can run into during a paving job. You may have to remove part of the base that you didn't plan on removing because it's too compacted. Or, you may have to run new drains because the old ones are too damaged.
If you switch to charging by the hour, then you won't lose money on jobs where something unexpected comes up. You'll be able to charge the customer more because the project took longer than expected. Just make sure you present the customer with your hourly rate up-front, and give them a range of time you expect the project to take. For instance, you could tell them your rate is $200 an hour and you expect the job to take anywhere from 50 to 100 hours.
Offer maintenance services
While there are plenty of new lots to pour in most areas, you'll have an easier time turning a profit if you also maintain them. Maintenance takes less time, fewer workers, and fewer resources, and parking lot owners need it performed. Some maintenance services to add to your list include sealcoating, crack filling, and line painting. You may need to invest in some equipment up-front, but you should soon get enough jobs to pay for it.
Consider buying a larger paver
If you currently have a smaller paver, your jobs may be taking you substantially longer than needed. You're paying people to be on-site for all of those hours, so shortening things up is often to your advantage. Consider trading your smaller paver for a big one. You'll be able to pave those large lots faster, and you can just raise your hourly rate to compensate.
With the tips above, you can increase your paving company's profits. Remember to make changes slowly and give your business time to adapt. Success can be had; you just have to plan for it.
Contact a local commercial paving service to learn more.