How Choosing the Right Temporary Wall Turns a Cost Center into a Profit Center

 

One solution that’s helping forward-thinking contractors achieve a fast ROI is modular temporary containment. These innovative solutions make it easy to install, move and reconfigure wall panels and doors that are engineered to reduce noise and contain dust on job sites.

5 Ways to Turn an Expense Into a Profit

The highest quality temporary containment offers a key additional benefit: the panels and doors are reusable, which means they can be used over hundreds of jobs, eliminating future containment costs – a profit-boosting advantage we call...STARC-O-Nomics.

Here are five ways you can turn an expense into project profitability.

1. Charge for Containment

Contractors charge for containment during a project whether it’s a built-in cost or itemized separately. When you deploy reusable panels, the containment costs pay for the panels over time. Once they are paid off, you can continue to charge for containment without any additional costs. This also eliminates material costs, such as drywall, plastic, and supplies for constructing temporary walls or containment barriers.

2. Labor Savings

Once the panels have been paid off, continuing to use them on future jobs increases profitability. At the same time, you can also reduce your labor costs with STARC wall panels by dramatically reducing the time it takes to install, take down, and clean up versus temporary walls.

Two workers can install 100’ of panels in about an hour. Once you anchor the first panel in place, workers simply lift and attach other panels and extend them to the ceiling. This allows a no-mess installation in an hour, compared to sheetrock installations which make take 2-4 workers several days to complete. The same labor savings applies to breakdown, which also requires significantly less cleanup.

3. Sell It Back to Customers

Upon job completion, contractors could sell the panels to their customers for future use. Many customers, including hospitals, appreciate the ease of use, dust containment, and infection control properties of the panels and want to use them for future projects at their location. Because you create negative pressure behind the panels, they are effective for quickly configuring isolation areas as needed.

Contractors benefit in two ways. First, they’ve charged for cost containment. Secondly, they now sell the panel system to their customer, recovering their costs.

4. Rent Containment Systems

Some contractors are also renting containment panels to reduce their initial costs and fully recover expenses. Others are buying STARC panel systems and then renting them out for future projects.

Some contractors are building a secondary revenue stream just renting and installing the panels for clients. While you can charge fees similar to a sheetrock installation, you can save money on labor and materials, making it significantly more profitable.

Others are buying large quantities of panels and amortizing the costs over multiple projects. Essentially, they become internal resellers to their own projects. ROI happens quickly and builds in long-term savings.

5. Leverage Tax Advantages 

Contractors may also leverage tax advantages using accelerated depreciation. They deduct the full amount of the expense in the year the property is placed in service. SMBs can write off entire equipment purchase prices the same year it’s bought, up to a cap of more than $1 million. They may also be eligible for bonus depreciation. Of course, when discussing taxes, you should check with your tax advisor to ensure this situation applies to you.

Turn Containment Costs Into a Profit Center

That’s STARC-O-Nomics. Not only are STARC temporary containment systems a premier solution for contractors, but they can also be used as profit centers.

For more information, contact STARC Systems today at 844-596-1784, or request a quote.

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