Ever lost a deal - and then scratched your head wondering HOW “the other guys” can possibly build it that cheap?
If you’re losing deals to a successful competitor* they might have made a strategic move before you even knew it was an option.
It happened to my client, George. He tells me things that I hear a lot from other guys in the industry… Costs are going up. Material prices are what they are. Labor rates are going up, and “the other guys” are just killing me on price. (There’s a certain amount of “W-T-F” in his voice but he doesn’t say it out loud).
If you’ve ever said…. “How the $#%^& were we high on that job?” this is certainly part of the answer.
The word is outsourcing and it’s the exactly the same as you doing work for ABC Megacorp.
Why outsource? Because you can subcontract little pieces of work to other people who are cheaper and faster than your team is. You don’t have to let any of your team go. What other shops are doing is getting their guys to do more estimates and outsource the finickey work.
Your fixed cost of estimating a job now becomes a variable cost, and you bid more jobs, faster. And it’s being used in places you wouldn't imagine. From getting 3-D renderings and takeoffs in Ukraine to Bookeeping in The Philippines .
This is a Profit Leak and job loss area a lot of contractors are ignoring - but I don't think you can anymore.
If you like staying on top of important trends (and winning the deals you deserve to win), join me in Dallas so we can talk the language of success together.
If you lose to a bottom feeder, let it go. If it's a lost deal to a solid, smart, long term player, you have to dig deeper. Or it will keep happening to you!
Dominic Rubino is the host of the CabinetMakerProfitSystem Podcast. At Wood Pro Expo Texas in Dallas, Dominic will be presenting How to Find (& Fix) the 8 ProfitLeaks in your CabinetMaking Business. Check out his site here.
About Cabinets & Closets Conference & Expo/Wood Pro Expo
The Cabinets & Closets Expo (CCCE) is the annual national event for cabinet and closet professionals and is co-located with Wood Pro Expo. The events are organized by Closets & Organized Storage and FDMC magazines respectively, both part of Woodworking Network.
The Cabinets & Closets event leads off with a full-day executive conference followed by the two-day expo featuring woodworking machinery and supplies. Additional educational programming is offered on both days of the expo. Tours of local manufacturing plants and the popular Top Shelf Design Awards reception are also key components of the event.
The 2020 CCCE is scheduled for March 11-13 at the Arlington Convention Center, Arlington, TX.
For information about exhibiting, and sponsorship opportunities, contact Patrick Filippelli of Hall-Erickson Inc. at [email protected]
or phone 800-752-6312.