Do You Want to Make Money in Construction Services as a Restoration Contractor?
As the owner or operator of a restoration business, it’s likely that you’re always looking for ways to built your business. At Geyser Equipment, we have extensive experience in this niche sector and want to ensure that our clients are aware of some of the crossover options available in the construction services sector. Read on to learn more and then reach out to us at 951-509-9269 for help finding the equipment you need.
It may not make sense to get into the industry
First of all, keep in mind that we’ve worked with many mitigation contractors who don’t find it beneficial to move into full construction services. Why? Because it’s possible to get a hefty referral fee for simply passing the work on. For example, if a client calls and needs help with something that’s out of your typical range of services, instead of saying, “We can’t do that,” tell them you can. Then pass the job on to a general contractor.
In this industry, asking for a 20% referral fee is entirely appropriate. This leaves the other company to do the job, and still get around 30% profit, while you get paid for the referral. This is the easiest way to handle requests for general construction services – but it’s not the only way.
You may consider doing part of the job
This isn’t an all or nothing proposition. For example, what works for many water restoration companies is to handle the flooring aspect and then hand the rest off to a general contractor. Why? Because repairing the flooring is often the biggest line item on a repair bill. You can get flooring at around 50% of billable cost, which means that you can get a great profit margin for this part of the job.
You can then pass off the rest of the job and get the 20% referral fee we discussed above. This allows you to do the part of the job that yields the best return on investment, and then still get paid on the rest of the job.
You can take on the entire job
Assuming you’re licensed, insured, etc., you may also choose to go all in and handle the entire job yourself. As long as you’re ready to do the work, take care of sourcing the material, and your team can handle the labor, then you could end up with a 50% profit for doing the job yourself. If the call comes in during a slower time, then this may be a great way to get some business in a time that you otherwise wouldn’t have it.
Call us for help with pressure washers, water treatment, and more
At Geyser Equipment, we are proud to be able to offer you a wide range of products and equipment. If you have questions about pressure washing, water recycling, water treatment, or other aspects of this business then we encourage you to call us at 951-509-9269 for help.
