Independent Contractors Stand Up For Themselves
June 2, 2010
Spending money used to be one of the great American pastimes. For decades, people wracked up large credit cards bills, overextended themselves for their dream homes, and financed the big, beautiful new SUVs. There was no concern about money because the economy was humming like a well-oiled machine.
Then, the bottom dropped out just a few years ago. Credit cards got maxed; people found themselves upside down on their mortgages; and the skyrocketing cost of gasoline made driving bigger cars far less appealing. The fallout shook the entire country.
Recently, I read an article in USA Today discussing how the public has begun to rethink their spending habits. They’re buying things they need rather than want. Sixty percent of people said they’re far less comfortable making a big-ticket financial commitment. Instead, they prefer to wait. This change in philosophy is heavily affecting the contracting industry.
STOP GROCERY SHOPPING AT THE CONVENIENCE MARKET
If the general public is watching their spending a bit more, why aren’t contractors? There are still contractors going to the big box retailers for parts and materials, running to office supply stores for paper and printer ink, and paying the same price at the pump as everyone else. These contractors are spending way too much money.
This type of buying behavior would be comparable to grocery shopping at the corner quick stop convenience market. Contractors are paying far more than necessary for the essential things they need. In fact, with the average contractor spending 50 percent of revenue on business purchases, this buying behavior is killing bottom lines and bankrupting companies.
THE COMPETITION IS BUYING AT BETTER PRICES
The economy isn’t the only thing that’s changed, so has the competition. Big box retailers are capturing more home services business every year. Even utility companies have jumped into the game. Then there are Wall Street consolidators and numerous other sharks in the water. They’re all aiming to take a bigger bite out of the home services industry leaving less for independent contractors.
This new competition has a distinct advantage — and that’s its size. They’re able to buy in bulk and negotiate steep discounts and rebates. Those savings are passed along to homeowners. In other words, the competition can offer similar services, for less money, while still hitting their profit goals. To stay viable, independent contractors are forced to slash prices and suffer. It doesn’t lead to a pleasant outlook for the future.
INDEPENDENT CONTRACTORS STAND UP FOR THEMSELVES
• Between 8-22 percent off the cheapest catalogue listings for materials, equipment, and field supplies!
• Up to 63 percent off office supplies!
• 5 cents off their gasoline purchases!
• $2,500 off the best negotiated price (from local dealers) on all trucks!
• 15 percent savings on all vehicle maintenance!
• An average of 28 percent off credit card processing fees!
• Up to 25 percent off uniforms!
• An average savings of $2,965 off yearly cell phone bills!
• And discounts on dozens of other items!
Those savings significantly impact bottom lines. With the average contractor operating at a 3 percent profit margin, the $2,500 savings on the purchase of a new truck is the same as profit earned from $83,000 in sales! Most contractors would be thrilled with $83,000 in additional revenue in one day! Here’s the best part about this $2,500: a contractor didn’t have to produce it by stepping into a truck, working extra hours, or dealing with headaches from extra jobs. Instead, it was made by buying smarter.
This buying alliance wants to help other contractors experience these types of savings, and it is actively expanding its network. The more independent contractors unite, the steeper the discounts and larger the savings will become. It will give more independent contractors a chance to survive the evolving industry.
Those interested in this new buying force should attend a meeting unlike any other offered — Focus on Your Future. At this event, contractors will discover how to eliminate the “invisible expenses” that can devour profits and understand how to use the alliance’s over $3 Billion in purchasing power to their advantage! For more information on Focus on Your Future, call 800-631-3792. Everyone who attends automatically receives a $237 buying credit!
