CONNIE HERNANDEZ: I think the secrets for controlling costs are to really have a budget. And stick as close as possible to that budget.

(voiceover continues) How to Control Costs: -Keep to Your Budget -Engage in Job-Costing

When, in our case we do bigger jobs, and we can actually do job-costing on that job, to see if the actual costs come close to the estimated costs, and then make adjustments at that moment in time. Don’t wait, you know, six months— if you’re losing money now, know you’re losing money, raise your prices even if you get less business, you have to make money, you know? And some people live on the cash flow, as long as there’s money coming in the door we’re okay…Well, if you STOP and you’re out of business because the money that came in won’t pay for what needs to go out, you’re not a viable business. Keeping costs down, also, one of the things that we have also discovered is… We have a lot of equipment—small equipment, but we have equipment.

(voiceover continues) How to Control Costs: -Keep to Your Budget -Engage in Job-Costing -Create an Equipment Replacement Inventory

So we’re in the process right now of creating an equipment replacement guideline, so we know, this particular grinder is estimated to last 10,000 hours and we think in two years we will have used it 10,000 hours, and so it needs to be replaced. And so we’re funding that replacement, so that the money will be there to replace. There’s nothing worse than not being prepared, there’s nothing worse than having a piece of equipment fall apart, and then you don’t have time enough to buy it at the best price, you buy it at your emergency price. The other thing I think that we do very well is we are constantly seeking less expensive ways to purchase our materials.

(voiceover continues) How to Control Costs: -Keep to Your Budget -Engage in Job-Costing -Create an Equipment Replacement Inventory -Look for Less Expensive Suppliers

You know, is it, if this is a product that we use we are constantly price comparing, seeing if we can buy it directly from the manufacturer, seeing where’s our best price at.