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.
As a leader in building solutions, LP Structural Solutions is consistently moving in the direction of greater resiliency. Each innovative building solution is viewed through that lens, as well as how it can help achieve LP’s overall goal of Building a Better World™. But why this direction? What led LP to focus on resilience in construction? Craig Miles, Director of OSB Sales & Marketing, explores how past trends inform LP’s work on modern building techniques today.Continue Reading
Coming off an unprecedented year, the busiest season for selling siding is almost underway! COVID-19 is still a significant consideration as you attempt to move forward with your siding business while taking learnings and challenges from the pandemic into consideration. We talked with Erik Perkins of Perkins Builder Brothers to get insight straight from the jobsite about COVID-19’s impact, tips for prepping for a new season, and more. Read on to see how LP can support you with one of the most durable siding options out there as your business ramps up!
Recently, homes are trending toward smaller, more compact sizes. Using extra-tall, cathedral or vaulted ceilings can create the illusion of a larger living space. But how do you avoid installation problems when insulating a cathedral or vaulted ceiling? How do you avoid problems when insulating an open ceiling?
When it comes to installing sub-flooring, one concern rises to the top for many professionals: rain. No matter your geographical area, dealing with some amount of water in sub-floor panels during the installation process is inevitable. That’s why it’s important to know how to protect the sub-floor during construction and how to prevent water pooling on sub-floor panels.