2021 is showing signs of being a record breaking year for the home improvement industry in the United States. Homeowners are feeling more positive about the economy; and after having spent more time at home over the last 18 months they’re noticing areas that need a facelift.
CTi Dealers are feeling the impact of this new outlook. Many Dealers across the country are reporting double digit increases in their businesses compared to 2020. Dealers are facing the issue of capacity and figuring out what to do when their backlog of work reaches out into months.
Some Dealers are simply charging more for their work and letting economic law take care of the over demand for their services. This solution leads to better piece of mind by bringing the back log back to a workable amount of time but also leads to geometric increases in profitability since no other fixed or variable costs are associated with the extra $.50 per square foot increase they put on their services (for example).
An extra $.50 per square foot is less than a 10% increase on the average square footage price charged nationally. However, since no other expenses are associated with this increase, the typical job of 1000 square feet has an increase net of $500. A full time Dealer will normally install 2-3 jobs like this each week so you can see where an extra $1000 to $1500 in net income weekly leads to a much better Dealership calculus.