There are only two ways to boost your bottom line: increase revenue and cut costs. In this blog, we’ll explore innovative ways for builders to cut costs in order to increase homebuilder profit margins – and we’ll examine revenue enhancement in a future post.
Long-Term Pricing Agreements
“Locking in building product prices for a specified period is often more important than getting the ‘best’ price,” says Bob Whitten, CEO of SMA Consulting in Orlando, Florida. “It’s very smart to take the long-term view. Just tell your dealer, ‘I’ll pay you a little more if you can lock in the price for an extended period.’ They’re usually happy to make that arrangement, and it saves money over the long haul.”
Cost Savings Through Design & Materials
Dennis Shriver, owner of Hearthside Homes in Kansas City, recently used engineered wood vertical siding to cut costs and speed installation on a 22-home project. Because the home designs featured exterior walls higher than 12 feet, there would have been a visible seam where 12 ft. siding panels met. This would have required the crew to build something down in the peak of the gable to create a shorter length or come up with an alternative to hide the seams.
Shriver chose 16 ft. vertical siding, which eliminated the seams and saved time and money on the installation. “Instead of finding ways to disguise the seam, my crew was able to simply apply one piece, cut to length and go,” he says.
Builders can also enjoy significant savings by using materials that reduce installation steps and don’t require special tools or equipment in order to help drive construction profitability. For example, there are now air & water barrier systems that install in one step, eliminating the cost and delay of bringing in a specialty crew the next day to apply house wrap.
One key to construction cost-cutting is to choose high-performance products that make installation simpler and less expensive.
While board and batten siding is typically made of wood, it can also be made from vinyl, fiber cement or even steel. But if you’re worried about durability and curb appeal—and these days who isn’t?—engineered wood siding is a smarter buy compared to traditional wood siding because it mimics its look but features greater durability and easier maintenance.Continue Reading
Flashing is a key part of the LP® SmartSide® Trim & Siding installation process, helping to protect homes from the elements by preventing moisture intrusion. When you are installing lap siding, incorrectly installed flashing may lead to moisture issues that can affect other aspects of the home, in addition to the siding.
When it comes to exterior cladding, homes require more than siding to protect them from the elements. Fascia and trim are two key elements that work together to create a protective barrier around the home, serving as a first line of defense along with siding.
In today’s landscape of high competition and new ways of interacting with clients, easy-to-access virtual resources have become even more important. That’s why LP® SmartSide® Trim & Siding is committed to providing you the tools you need to keep up with the changing landscape.