Running a successful business in the competitive excavation business is no easy feat. Besides having vast knowledge about the construction industry, you also need a state of the art business skills. Just like any other business, it is important to maximize your profit margin. Here are some tips on how you can save money when running the excavation business.
1. Increase Loading Efficiency
The technology in wheel loaders gets better by the day. To stay in business longer, embrace these changes to improve profitability. To increase your loading efficiency, use the functions on the machine designed to improve cycle times.
Besides, use operator technique when loading the bucket. Set the bucket level correctly, and maintain momentum when pushing into the pile.
2. Avoid Unnecessary Maintenance
Equipment maintenance is part of the job. However, you can avoid making some mistakes that would lead to much unnecessary maintenance. For instance, reading the owner’s manual can save you a lot of trouble. The manual contains invaluable information you can use to run a quick self-check the machines instead of spending money on maintenance.
Also, ensure that you use attachments such as excavator thumbs for their intended use. Misusing them can lead to breakage, necessitating replacement.
Since you cannot entirely avoid maintenance, it is essential to have a maintenance contract. Although the deal will cost you money, it saves you money in the long run.
3. Embrace Technology
Understanding the numbers in your business helps you increase the profit margin. Unlike the olden days, you don’t have to be a math guru to work on the numbers. Telematics and other software systems help you know the operational costs as well as the owning costs. With the data, you can calculate your machines‘ fuel efficiency, thus knowing how to make necessary changes.
4. Stay on Budget
Realizing that your project is going out of budget can give you a nightmare. Even though you want to satisfy your clients, ensure that the work stays on course. While doing routine analysis, check for any potential machine misuse. Is the operator jeopardizing the excavation machines? Is he using the correct work modes on the excavators?
Be on the lookout for any underutilized machines. These machines can be assigned to other projects, cutting down the overall cost of the project.
5. Invest in a Wheeled Excavator
A wheeled excavator can save you money, and help you take your business o the next level. To start with, wheeled excavators are highly mobile, allowing you to move from one region to another at minimum transport costs. Wheeled excavators are also quite easy to maneuver around.
Another reason why you should consider a wheeled excavator is a flexibility that comes with it. A wheeled excavator can be configured with different arm and attachment options to meet a particular job’s needs. Therefore, by changing the attachment, you can carry out multiple tasks without bringing along extra machines. Besides, wheeled excavators enhance safety in the work area since they are easily visible.
6. Buy Excavators at an Auction
High-quality excavators don’t come cheap. However, you can still get quality equipment and save some money while at it by shopping at reputable auctions. Although it’s a risk, it is one worth taking.
To get value for your money, do some research on the machine you want. Ask the auction representative whether your mechanic can check the excavator before the auction date. Your mechanic would be in a better position to see the finest of details and advice you accordingly.
Before buying it, find out about the seller. What work was the seller subjecting the excavator to? Can they provide documentation on the machine, such as maintenance records? Find out how much a similar machine is going for on other used markets as well as at the new market.
Finding equipment in good condition at an auction would save you money. Just make sure it is worth the investment.
Saving money at every opportunity you get is the surest way to grow your business. However, don’t compromise the quality of the services you offer in an attempt to save money. Maximize efficiency, hire qualified personnel, and apply the tips above. Besides, keep up with the latest trends in the industry.