Updated: Apr 24, 2021
We are going to show you some tips, tools, and equipment that will save you hundreds if not thousands of dollars month after month. With the extra savings you can afford the new truck you needed or the skid steer you've always needed, or maybe the extra profit goes right into your pocket. Either way, you choose what to do with your savings.
Some Food For Thought
Saving 10 to 30 min per employee is $100 to $300 per month per employee- assuming 20 workdays per month and average employee cost is $30/hour (pay rate, taxes, & overhead). Some may have higher average employee costs but we are just going to use $30 per hour.
2 employees= $200 to $600 $2400 to $7200 per year
3 employees= $300 to $900 $3600 to $10,800 per year
5 employees= $500 to $1500 $6000 to $18000 per year
10 employees= $1000 to $3000 $1200 to $36000 per year
As you can see, small gains can have a HUGE impact.
What would you do with an extra $2000 to $36000 or more? New truck, piece of equipment, tools, vacation, profit in your pocket, or shop improvements. You can decide.
It Doesn't Stop There Though- What if the time saved was billable?
10 minutes saved across 20 days is 3.33 hours you can charge for now. At $50/labor-hour that's an additional $166.66 per month ($2000 per year) in your pocket.
30 minutes saved is 5 hours, which amounts to an additional $250 per month ($3000 per year assuming $50/labor-hour).
That's a one-two punch!
Saving time and improving profits!
Most want to think of the direct costs with equipment: How much is this going to cost me today? Down the road with maintenance? How reliable is the brand? Etc.
While yes this is obviously a huge part of the decision-making process, but one could argue that the return on investment (ROI) should be the more important factor. How much can I earn from this purchase? How much can I save- time, money, stress?
For example An enclosed trailer- allows you to keep your tools and equipment organized(being organized saves unknown amounts of time) and lockable. Eliminating loading and unloading from the shop or garage to truck or trailer- saves 20 to 40 min per day. Prevents theft- average leaf blower is around $500 to $600. Safe to say one can expect to save $400 to 600 per month using an enclosed trailer.
Now, what if you put your logo on it? Or got it wrapped in a nice vehicle graphic? Sure there is the upfront cost, but now you have a mobile billboard parked at all your jobs advertising your services. Not only has your investment saved you hundreds if not thousands, but now its bringing you more business. Seems almost like a no-brainer, right?
To finance an enclosed trailer, you can expect to spend around $150/month (more or less depending on your credit score). The savings alone would pay for the trailer.
More pieces of equipment that pay for themselves and put more profits in your pocket:
Dump Trailer- save 30 min plus per day Unload debris in seconds, carry heavy loads, haul heavy equipment
Rollout Tarp- save 15 min per load, can be found at harbor freight, unloads bed of a truck in seconds,
Dump Bed Insert- can save you easily 15 min per load. If you use your truck bed for hauling materials and removing debris, you'll want to consider a dump bed insert-
Material Buggy- saves 20 min or more per day, A.K.A. Concrete Buggy, holds 3 times the amount of a wheelbarrow, capacity of 1500lbs or more, and fits through most gates.
Mini skid steer- saves 30 min to hours, recommended that you plan to use this piece of equipment daily or at least 3 to 4 times per week.
Skid steer- saves 30 min to hours, recommended that you plan to use this piece of equipment daily or at least 3 to 4 times per week.
Excavator- saves 30 min to hours, recommended that you plan to use this piece of equipment daily or at least 3 to 4 times per week.
Lawn Mowers- The right size mower can save you time, decrease payroll, and increase your profit margin. saving 10 minutes per acre yard, 25 yards per week, would equal savings of about $500 per month
Daily Operating Tips
Contractors can also implement some day-to-day changes that could save them hours. Something as simple as having your employees stop at the gas station before work to get their supplies for the day.
Not once they get to the shop and shove off for the day with other employees and company equipment burning the clock. 2 to 3 guys going to the gas station is easily a 10 to 15 min stop plus the drive time both ways. That's 20 to 45 min ($200 to $450per month) wasted and the day has barely started.
Organization- Can your crews find the tools and supplies they need? Or do they have to search for it and then possibly realize you don't even have what their looking for. Organizing your shop, office, vehicles, and job sites will save you unknown amounts of time.
Materials Delivered- Can you have materials delivered for your projects? Or go to the supply yard or store? Materials delivered mean less time for employees to wander around stores, wait in check-out lines, or come to find the store is out of stock. Delivery fees could outweigh this cost, so you may have to decide on a project-to-project basis.
Fuel- Having fuel on site of your shop or place of business can save tons of time, especially if your business uses a lot of vehicles and equipment. Less wasted time for your crew at gas stations. Buying fuel in bulk will get you some savings as well.
Assessing your current daily operations and equipment usage/needs is the first step to help you identify areas you can make improvements. 5 or 10 minutes saved here and there can really add up quickly and turn into profits of hundreds, if not thousands. Is your shop organized so you and your crews can find tools and material? Does it make sense to store material at your shop? Pick them as needed? Have them delivered? Would a new machine increase productivity? Replace an employee? Equipment doesn't call off or get sick every Monday..... Email us with your questions or comment below.
What are some ways you have saved time?