Quick Wins and Monthly Savings
| Quick Wins | Monthly Savings |
|---|---|
| Cut unused licenses | $467/employee |
| Combine duplicate tools | 10-25% |
| Switch to cloud options | 20-30% |
| Negotiate better deals | 15-20% |
- Project management ($39-55/user)
- CRM ($99 + user fees)
- Field service software ($29-89)
- List every tool you pay for
- Check what features you use
- Find overlap between tools
- Keep one tool, cut the rest
- Track usage monthly
- Solo contractors
- Small teams (1-10 people)
- Medium businesses (11-50)
- Large companies (51+)
Related video from YouTube
Software Cost Problems Today
Software costs are taking a bigger bite out of home improvement companies’ profits. The numbers tell the story: construction software spending will jump from $8.90 billion in 2018 to $13.90 billion by 2028.
Basic Software Costs
Here’s what software actually costs home improvement businesses:
| Software Type | Monthly Cost Range | Annual Cost |
|---|---|---|
| Entry-Level Plans | $21 – $88 | $252 – $1,056 |
| Mid-Tier Plans | $88 – $249 | $1,056 – $2,988 |
| Enterprise Plans | $249+ | $2,988+ |
| Per User Add-ons | $5 – $150 | $60 – $1,800 |
Bottom line? Small contractors spend between $10,000 – $25,000 per year on their basic software stack.
Problems with Poor Software Management
Poor software choices hit your business in 5 ways:
- You pay for features you never touch
- You buy multiple tools that do the same job
- You get stuck with too many user licenses
- You face surprise training and setup fees
- Your team wastes time jumping between programs
Warning Signs of High Software Costs
Here’s how to spot software spending problems:
| Warning Sign | What It Means |
|---|---|
| Rising Per-User Costs | New hires make your software bills explode |
| Duplicate Functions | You’re paying twice for the same features |
| Low Usage Rates | Money goes to software that sits unused |
| Training Problems | Hidden costs pop up to train your team |
| Integration Issues | Your tools fight each other instead of working together |
Here’s the thing: You need software to run your business. But you DON’T need to waste money on tools that don’t pull their weight.
Finding Out What Software You Need
Your home improvement business needs specific sotware to run smoothly. Here’s what matters:
| Type | Examples | Monthly Cost | Need Level |
|---|---|---|---|
| Project Management | JobProgress, ServiceMonster | $39-55 per user | Must-have |
| CRM | MarketSharp | $99 + user fees | Must-have |
| Field Service | Jobber | $29-89 | Based on size |
| Design/Visualization | SketchUp | $119-299 | Optional |
Start with ONE core tool that handles your daily work – scheduling, estimates, and customer info. That’s it.
Stop Paying Twice
Here’s a fact: Most contractors pay for the same features twice without knowing it.
Want to fix that? Do this:
- List your tools: Write down every software you pay for
- Map features: What does each one do?
- Find overlap: Which features show up twice?
- Pick winners: Keep the best tool, cut the rest
Here’s what I mean: Let’s say you use JobProgress ($55/month) AND a separate scheduling app ($39/month). That’s $468 wasted each year on duplicate features.
Track What You Actually Use
| Check Point | Action | Time Frame |
|---|---|---|
| Usage Reports | Pull login data | Monthly |
| Feature Use | Check which tools get used | Quarterly |
| Cost per User | Calculate price per employee | Monthly |
| Team Feedback | Ask staff what they need | Every 6 months |
Pro tip: Check your software twice a year. Look at who logs in and what they use. If something’s collecting dust, cut it.
“If you are looking for a fairly priced business management system with a ton of impressive features, check out JobTread.” – Jeff, Software Reviewer
Bottom line? Don’t buy software just because others do. Pick what YOU need, nothing more.
Money-Saving Software Options
| Software Type | Monthly Cost | Features | Money-Saving Benefit |
|---|---|---|---|
| Cloud-Based | $49-85 | Remote access, auto-updates, data backup | No hardware costs, free updates |
| All-in-One | $79-497 | CRM, estimates, scheduling, payments | Replaces 3-5 separate tools |
| Traditional | $125+ | Desktop-only, manual updates | None – highest total cost |
One Platform vs Multiple Tools
Many software solutions on the market today combine several essential tools into one package, helping contractors streamline their operations:
- CRM and lead tracking
- Sales funnel builder
- Website builder
- Payment processing
- Marketing suite
- AI chatbot
Here’s the math: Most contractors pay $150-200 for EACH tool. Running 5 separate tools? That’s $750-1000 per month. Switching to an all-in-one platform could save you 33-50% by consolidating your tools into one package.
Why Cloud Software Wins on Cost
Let’s break down cloud vs desktop costs:
| Cost Factor | Desktop Software | Cloud Software |
|---|---|---|
| Setup Fees | $500-2000 | $0 |
| Updates | Yearly fee | Free |
| Storage | Extra servers needed | Included |
| Access | One device only | Any device |
| Data Backup | Manual/extra cost | Built-in |
Look at the numbers: Contractor Foreman costs $49/month with everything built in. XactRemodel? $58/month/user PLUS setup fees.
“Leap’s merger with JobProgress brings project management and communication into one package. Their all-in-one system helps streamline both internal and external business operations.”
Pro tip: Want to save more? Pick cloud software that bills per company instead of per user. Your costs won’t spike as you add team members.
Ways to Cut Software Costs
Combining Your Software Tools
Most home improvement businesses burn money by running too many separate tools. Let’s look at the numbers:
| Current Setup | Monthly Cost | All-in-One Alternative | Monthly Cost | Savings |
|---|---|---|---|---|
| CRM + Website + Marketing + Payments + Scheduling | $750-1000 | HomeProGrowth | $497 | $253-503 |
| Project Management + Estimates + Invoicing | $350-450 | Cloud-based solution | $85-150 | $200-365 |
Here’s what you need to do:
- Make a list of your current software
- Circle the features you ACTUALLY use
- Spot the overlap between tools
- Pick ONE platform that does most of what you need
Managing Software Subscriptions
After payroll, software is eating up your budget. Here’s what the data shows:
| Problem | Impact |
|---|---|
| Unused subscriptions | 27% of software spend wasted |
| Yearly cost increase | Up 17.9% from last year |
| Extra seat licenses | $1,000/year per unused seat |
Want to slash those costs? Do this NOW:
- Look at login dates for each tool
- Drop anything unused for 90+ days
- Switch to monthly plans if usage isn’t steady
- Delete licenses for people who left
“We’ve cut our software costs by over 10% just by finding and removing duplicate subscriptions.” – Charlie Maynard, Financial Controller at What3words
Here’s how to save even MORE:
- Get bulk discounts on yearly plans
- Share licenses between teams
- Try before you buy with free trials
- Choose company-wide pricing over per-user when possible
The average company pays for 130+ apps. That’s CRAZY. Start cutting the fat today by focusing on what you ACTUALLY use.
Setting Up New Software
Most software switches fail. Here’s how to do it right.
| Migration Method | Best For | Timeline | Risk Level |
|---|---|---|---|
| Big Bang Switch | Small teams | 1-2 weeks | High |
| Parallel Running | Medium teams | 2-4 weeks | Medium |
| Phased Adoption | Large teams | 4-8 weeks | Low |
Here’s the thing: 83% of software migrations fail or blow their budget. But you can beat those odds.
1. Clean Your Data
Your data needs to be spotless BEFORE you move it. That means:
- Getting rid of old stuff
- Fixing mistakes
- Removing duplicates
- Making backups (lots of them)
2. Test Everything
Build a practice environment. Your team needs to know what they’re doing BEFORE the real switch.
Want proof? HEINEKEN saved 25,000 work hours across 160+ locations by testing first.
3. Move Your Data
| Step | Time Needed | Who Does It |
|---|---|---|
| Export old data | 1-2 days | IT team |
| Check data quality | 2-3 days | Department heads |
| Import to new system | 1-2 days | Software vendor |
| Verify everything works | 2-3 days | All users |
Getting Your Team Up to Speed
Keep training short and sweet:
| Training Type | Time | Purpose |
|---|---|---|
| Video guides | 15-30 mins | Basic features |
| Live demos | 1 hour | Common tasks |
| Hands-on practice | 2-3 hours | Real work scenarios |
| Follow-up help | As needed | Problem solving |
Make it stick:
- Save recordings of every training
- Give people a safe space to practice
- Pick your tech-savvy people as helpers
- Do weekly check-ins (first month only)
Red flags to watch for:
| Warning Sign | Action Needed |
|---|---|
| Low login rates | One-on-one training |
| Many support tickets | Extra group sessions |
| Slow task completion | Simplified workflows |
| Data entry errors | Process guides |
Here’s a scary number: 32% of IT managers lost data during migrations. Don’t be one of them. Start small, test like crazy, and back up EVERYTHING.
Tracking Your Savings
Here’s a hard truth: most home improvement businesses waste money on software. They only use 56% of their licenses. Let’s fix that.
Does Your Software Pay Off?
Here’s what to measure:
| Metric | What to Track | Target |
|---|---|---|
| Cost per user | Monthly subscription ÷ active users | Under $250/user |
| Usage rate | Hours used ÷ hours available | Above 70% |
| Time saved | Old process time – new process time | 15+ hours/month |
| Money saved | Old costs – new costs | 20% reduction |
Want to know if your software investment makes sense? Use this simple ROI formula:
ROI = (Money Saved - Total Software Cost) / Total Software Cost × 100
Most companies see 5-10% ROI. The best ones hit 20%.
Here’s a real example: If AppFolio costs you $5,000 per year but saves $10,000 in labor, that’s a 100% ROI. Pretty good, right?
Stop Wasting Money on Unused Software
Companies in the US and UK throw away $34 billion every year on software nobody uses. Here’s how to stop that:
| What to Check | How to Check | What to Do |
|---|---|---|
| Login frequency | SSO logs | Drop licenses for users logging in < 2 times/week |
| Feature usage | App analytics | Cut premium features nobody touches |
| Task completion | Time tracking | Find where people need help |
| Error rates | System reports | Fix workflow issues |
Quick Tips:
- Mark your renewal dates
- List which features people actually use
- Look for tools that do the same thing
- See if basic plans work just as well
Tools like G2 Track help spot waste. Check your software costs monthly – small cuts add up FAST.
Keeping Costs Down Over Time
Regular Software Reviews
Here’s how to check your software spending each month:
| Review Area | What to Check | Action Steps |
|---|---|---|
| Usage Stats | Active users vs licenses | Cut unused licenses |
| Cost Trends | Monthly spending changes | Find price jumps |
| Feature Use | Which tools get used | Drop unused features |
| Duplicate Tools | Apps with same functions | Pick one, cut others |
| Cloud Costs | Storage and data use | Adjust plans as needed |
Here’s something that might shock you: 70% of cloud costs are just sitting there, waiting to be cut. That’s what Gartner found. And most home improvement companies? They’re leaving money on the table by skipping regular software checks.
Want to stay on top of your software spending? Here’s what to do each month:
- Look at who’s actually logging in
- See which features your team uses
- Compare this month’s bill to last month
- Write down when stuff needs to be renewed
- Make a list of software nobody uses
Getting Better Software Deals
Let’s talk about saving money when buying software:
| Negotiation Tactic | Typical Savings | How to Do It |
|---|---|---|
| Multi-year deals | 15-20% off | Lock in current prices |
| Bundle packages | 10-25% off | Buy multiple tools together |
| Volume pricing | Up to 30% off | Get team-wide licenses |
| Off-peak buying | 5-15% off | Buy in Q4 or Q1 |
| Competitor quotes | 10-20% off | Show other offers |
Here’s a real example: Greenyard found 400 Microsoft licenses they didn’t need. Their CIO put it this way: “With Lansweeper, we now have a 100% clear view on what we have running across all of our sites. This insight and visibility has been instrumental in helping the company eliminate waste and optimize costs.”
Want to pay less? Do these things:
- Buy when quarters end (that’s when deals happen)
- Show vendors their competitors’ prices
- Get at least 3 quotes before buying
- Look for package deals
- Compare cloud and desktop prices
Here’s the thing: 57% of IT teams are being pushed to cut their SaaS costs. And with SaaS prices going up 3.5 times faster than inflation in the USA, every dollar counts.
Tips by Business Size
Tips for Small Businesses
| Area | Software Options | Monthly Cost |
|---|---|---|
| Project Management | Workyard | $6/user + $50 base |
| Estimating | Clear Estimates | Contact for pricing |
| CRM & Proposals | SumoQuote | Contact for pricing |
| Basic Accounting | QuickBooks | $4/employee + $45 base |
Small businesses: Keep it simple. Here’s what you need to know:
You DON’T need every tool on the market. Instead, focus on the basics that make you money.
Want to test the waters? Start with Workyard’s 14-day free trial. It’s perfect for job costing.
Here’s what works:
- Pick ONE main tool (not five different ones)
- Only pay for users who ACTUALLY need access
- Choose monthly payments to manage cash flow better
- Skip the fancy extras you won’t use
Tips for Medium Businesses
| Action | Expected Savings | Timeline |
|---|---|---|
| Share licenses between teams | 15-25% | 1-3 months |
| Move to cloud solutions | 20-30% | 3-6 months |
| Bundle software packages | 10-25% | Immediate |
| Regular usage reviews | 10-20% | Monthly |
Medium businesses can cut costs without cutting corners.
BuilderTrend or CoConstruct give you total project control. But here’s the key: you need to manage your tools better.
What to do:
- Look for teams using duplicate tools
- Drop redundant software
- Buy quarterly (it’s cheaper)
- Check usage stats monthly
- Share licenses across departments
Tips for Big Businesses
| Strategy | Tool Example | Cost Control Method |
|---|---|---|
| All-in-one Systems | Builder Prime | Volume pricing |
| Equipment Tracking | EZOfficeInventory | $40/month base |
| Project Planning | Touchplan | $590/month base |
| Team Collaboration | UDA ConstructionOnline | $558-3275/month |
Big businesses need big solutions – but that doesn’t mean big waste.
Focus on:
- Getting volume discounts
- Monthly software audits
- Standardizing tools across teams
- Eliminating duplicate software
- Negotiating enterprise rates
“By breaking down those organizational siloes, you encourage different departments to collaborate and pool resources instead of each team investing in separate licenses for the same software or application.” – Matthew Garrett, Principal Consultant at Entec Si
Mistakes to Avoid
Here’s what costs home improvement businesses money with software – and how to fix it.
Buying Too Much Software
| Common Waste Type | Average Annual Cost | Prevention Method |
|---|---|---|
| Unused Licenses | $135,000 | Regular usage audits |
| Duplicate Apps | $467/employee/month | Centralized purchasing |
| Excess Features | Up to $8,303/tool | Right-size subscriptions |
| Auto-renewals | 30% overspend | Track renewal dates |
Companies burn money on software they don’t need. It happens in 4 main ways:
- Teams grab new tools without checking what’s already there
- Departments buy different tools that do the same job
- Companies pay for fancy features they never touch
- Old subscriptions keep charging long after people stop using them
“Companies just sweep the license management problem under the rug. That’s a huge mistake.” – Anil Desai, Independent IT Consultant
Hidden Costs That Bite Back
| Hidden Cost Type | Impact | Solution |
|---|---|---|
| Audit Fees | Full retail price for unlicensed products | Regular compliance checks |
| Admin Time | 10+ hours/month wasted | Use management tools |
| Training Needs | Extra budget required | Include in initial planning |
| Integration Issues | Lost productivity | Check compatibility first |
Here’s what sneaks up on you:
- Software Audits: Microsoft checks your licenses every year. If you’re short, you pay for both the audit AND missing licenses
- Time Drain: Your finance team spends 10+ hours each month just managing software
- Basic Plan Gaps: The cheap version often lacks must-have features
- Usage Limits: Many tools hit you with extra fees when you use more than expected
The Fix:
Get a software management tool to track everything. Check ALL costs before buying – not just the monthly fee. Talk to your team about what they actually need. And READ those terms about usage limits and extra charges.
Here’s the kicker: 30% of software spending goes straight down the drain through tools nobody uses. Don’t let your business fall into that trap.
Wrap-Up
Here’s what cutting software costs looks like in real numbers:
| Action Item | Expected Savings | Timeframe |
|---|---|---|
| Software Usage Audit | 27% of current spend | Quarterly |
| License Consolidation | $467/employee/month | 30-60 days |
| Vendor Renegotiation | 10-15% of contracts | Annual |
| Cloud Migration | Up to 60% on support | 90-120 days |
Want to start saving money RIGHT NOW? Here’s what to do next week:
- Look at your actual software usage data
- Get rid of tools that do the same thing
- Put all team passwords in one place
- Add renewal dates to your calendar
The numbers don’t lie:
- Software costs eat up 54% of IT budgets
- Removing unused seats saves $10,000+
- Finding hidden subscriptions cuts 15% off your spend
“Staff often use different apps for the same tasks. Getting everyone on the same tools cuts unnecessary software spending.” – Matthew Garrett, principal consultant at Entec Si
Here’s your action plan:
1. List your tools
Write down every piece of software you’re paying for.
2. Check usage
Look at how often your team actually uses each tool.
3. Pick your winners
Keep the tools that handle most of your needs.
4. Cut the rest
Cancel everything else.
Here’s what to do based on your company size:
| Business Size | First Step to Take | Time to Results |
|---|---|---|
| Small (1-10) | Cancel unused subscriptions | 1-2 weeks |
| Medium (11-50) | Combine duplicate tools | 1-2 months |
| Large (51+) | Get a software management system | 2-3 months |
Bottom line: After payroll, software is your biggest expense. Every dollar you save on software is pure profit.