We've all been there. By the 21st or 25th, we're wondering how we'll get through the month!
The money goes where? Sometimes I look back and think, "I don't even remember spending
anything!" But here we are, a week or two from the month' conclusion... We're juggling the
payable list and figuring out who hasn’t paid us yet. So irritating! Scary at times.
One of the greatest ways to stretch our dollars is to become more aware of our spending
patterns. After all, we need to know where we are today to really change and become financially
independent and secure.
How are your spending habits? What works? What might be improved?Are spending habits easily changed? I wish I could say it was simple, but it takes diligence and
is a constant battle that is key to Boosting your bottom line.
Every month, review your financial results and see what worked and what needs improvement.
With analysis and planning your dollars WILL stretch further and further each month. No magic
money tree here, but you WILL feel less worried and eventually eliminate financial stress. Here are some useful tips to stretch your dollars:
Electrical Business Material Costs
If you properly analyze your monthly financials, you will very soon recognize material costs are
a significant chunk of the costs for your business. In some cases, depending on the type of work
and projects you are doing they can be over 50%!
Large Contractor Material Discounts
Large contractors with 25+ employees will do a lot more volume and project work than the small
contractor with 1-5 employees. Large contractors pretty much always have lower material costs
than the smaller ones. This may not be the case for a quoted material package with a tight
specification that cannot be broken from an engineer. The manufacturers and those who sell
their products lobby engineers to specify only their products. This enables them to significantly
increase margins. As far as the day-to-day materials not included in the quoted package due to
the large volumes being used by the large contractors, they will have contract or ship and debit
pricing for many of these product lines.
Small contractors specializing in one type of work have a better chance of getting better pricing
for the products they buy every month. Those who do a diverse cross section of work may not
as the volumes just are not there. You can pretty much guarantee the larger contractor will
always have better material prices if their purchasers are doing their jobs correctly. The small
contractor is very busy and does not have time to properly manage material costs. They also in
many cases only shop at one or maybe 2 suppliers. They rely on the supplier they have chosen
to provide them with fair pricing. Many times, they realize their material costs may be good for a
few items they notice but overall, they are paying far too much!
Different Supplier’s - Different Product Lines
One thing is for certain, not all manufacturers are created equal! If you have many accounts at
different supply places and get a huge price gap on the exact same product you will right away
notice they in the vast majority of cases are from different manufacturers. Some manufacturers
may run a lot leaner than others. They may have far better prices on their raw materials. They
may have a better way of manufacturing that greatly reduces their costs. They may manufacture
offshore and save significantly on labor. These days they may manufacture offshore, and their
shipping has quadrupled too, and their costs are going through the roof!
Large Contractors Surplus Profits & Losses
We get calls and emails every day from large contractors looking to “PURGE” their surplus
leftovers from projects. Are they just tossing material profits away? Many of them have multiple
purchasers and project managers but no one to deal with their surplus. They call a few surplus
warehouses and unload it in a lump sum for pennies on the dollar in most cases. The profit is
already known on the job and those materials already wrote off! They may spend a significant
amount of time creating a list and then reaching out to multiple surplus warehouses to unload
the surplus.
Is There a Better Way to Maximize Profits for Surplus Sales?
Well, the good news is there certainly a better way to maximize surplus profits! It’s simple really!
You are going to take pictures, put together somewhat of a list, and figure out a reasonable
cost. With an account on Surpluselectrical.ca you simply upload it onto your seller account. You
can load it into the bulk section in one lot, you can separate out expensive items into separate
listings. You can put in the weights and dimensions, so the buyers pay the freight, you simply
print off the weigh bill. Payments hassles, not on our platform, it accepts all major credit cards,
and the money goes directly into your account. Your warehouse will have a specific link or URL
for buyers to easily see what you currently have for sale that you can easily share with those
you normally reach out to. Once you have shared the link to your warehouse it will be easy for
you to manage. You will also suddenly reach a much larger market and buyers you never knew
existed!
How to Make Huge Margins Buying Surplus
There are many misconceptions about surplus products all being used. Yes, there is used
surplus and in some cases these products can be in very high demand. The majority of surplus
is new, and in many cases still in factory packaging! The savings can be significant and put a lot
of extra money on your bottom line. Surpluselectrical makes it easy to order online any time of
the day or night!
