Keeping Construction Company Expenses Under Control is Like Herding Cats
John Wayne gave us some of the best quotes in cinema history. He definitely had a way of saying things. So, what kind of grizzled, folksy cowboy advice would you think John Wayne would give you about controlling and reducing construction company expenses?
I’m pretty sure he would say something about a barrel without a bottom. Because it certainly can feel like money is getting poured into a bottomless barrel. Keeping expenses under control (and shrinking them when possible) can indeed feel like herding cats.
The 1st Thing He Would Say, and 3 Ways To Reduce Construction Company Expenses
There’s a right and a wrong. Y’gotta do one or the other. Do the other and you may be walking around, but you’re dead as a beaver hat.– John Wayne, as Col. Davy Crockett in “The Alamo” (1960)
Because no one wants to be wrong, or dead as a beaver hat, we recommend taking a close look at eight expense reduction opportunities that are right for construction companies, listed in order of greatest likely (positive) impact to your bottom line:
1 – Employer-paid Health Benefits — It’s typical for health insurance premiums to go up 11% to 20% each year, but its also very easy to reduce that expense by 20% (or more) by going to a self-funded plan with a trusted Third-party Administrator. If you have 50 or more covered employees (100 in New York or California) this could save you huge amounts of money every year. After payroll, health benefits are probably your second-largest expense? We can knock that down.
2 – Workers’ Comp Refunds — 70% of companies unknowingly pay more in workers comp premiums than they need to and can get refunds. But get this – insurance providers have no obligation to tell you if you’re overpaying. They only care that you’re paying enough. Construction companies (particularly in New York, New Jersey, Delaware, California and Alaska) have the highest workers’ comp rates in the nation, and where we typically find the largest refunds. We can easily determine if you’re due a refund, and get it for you.
3- Hiring Incentives (WOTC) — Payroll is always a huge expense. But thanks to the Work Opportunity Tax Credit, there is federal money available to help pay wages – up to $9000 per qualifying employee in dollar for dollar tax credits. If you hire more than 25 people per year, there may be money waiting for you.
The 2nd Thing John Wayne Would Say and 3 More Ways to Reduce Construction Company Expenses
What’s the secret of success? Right decisions. How do you make right decisions? Experience. How do you get experience? Wrong decisions.”John Wayne
Learning from others’ mistakes is certainly easier than learning from your own. But we’re offering you a way to avoid mistakes altogether (We’re sure the Duke would be OK with that). Here are three more ways to reduce your construction company expenses:
4 – Instant Pay for Hourly Employees — Instant access to earned wages is the next big thing in payroll management. It helps your hourly employees between paydays and it saves you money by reducing turnover and absenteeism. There is no cost to you at all. You better offer this quick before your competition does. We can help you get set up with the nation’s #1 instant pay provider.
5 – Copier Lease Reviews — A whopping 98% of businesses are unknowingly overpaying on their copier leases. We can typically save our clients about $10,000 per machine going forward. Yes, $10,000 per machine.
6 – Class Action Recovery — Only 7% of companies eligible for class action payments even know they are eligible. Because of that, they miss out on “free money” they would have received from a settlement. The Duke might refer to them as “Greenhorns”. We can find money for you now and in the future.
The 3rd Thing John Wayne Would Say and the Other 2 Ways to Reduce Expenses
A man’s got to do what a man’s go to do.John Wayne
Cost reduction isn’t always glamorous, but as the Duke says, a man’s got to do what a man’s got to do. These last two ways to reduce construction company expenses may seem decidedly unglamorous, but like great construction, we think there is beauty in the little things, too.
7 – Waste Services Billing Audit — Construction waste is often overlooked as a cost reduction opportunity. Yet our own audits show that 80% of business are paying more for waste disposal than necessary. But who has the time or expertise to scour invoices looking for overcharges or errors? We do. We have waste industry experts on our team who know exactly what to look for.
8 – Wireless Phone Billing Audit — We’ve reduced wireless charges for more than 95% of our clients, by 25% to 33%, without changing phone numbers or equipment or even carriers. It may seem like a small thing, but in our opinion, anytime you overpay for something, that’s actually a big thing.
Bonus Quote from the Duke
Slap some bacon on a biscuit and let’s go! We’re burnin’ daylight!John Wayne as Wil Anderson in “The Cowboys” (1972)
Don’t pour any more money into a barrel without a bottom. You’ve just read eight great expense reduction ideas that are specific to the construction industry. So slap some bacon on a biscuit and let’s go! We’re burnin’ daylight!
We can show you, in about 15 minutes, how much you can begin saving on these common business expenses. All of our expense reduction services are provided on a contingency basis. When you realize actual savings, we’ll be paid a percentage of those actual savings. If you don’t realize actual savings, you don’t pay a thing for our effort.
To paraphrase The Duke, “That’s about as fair as a man can ask for.”
It all starts with a phone conversation. Request a call today.
S. Boyd Karren is the Managing Partner of Expense Reduction Partners LLC. He earned a Master of Business Administration degree from Indiana University and a Master of Global Management degree from the Thunderbird School of Global Management. Reducing unnecessary business expenses is his thing. His favorite John Wayne movie is “Big Jake”, largely because his mother is a McCandless, just like the Duke’s character, Jake McCandless.