Make Money By Exiting The Warehouse Business

For years, I’ve traveled around this country working with contractors and if there’s a common mistake it’s that they think they can manage their in-house warehouse and save money.

By far, those who have listened and done the proper steps have found that they can save money, time and minimize shrinkage [fancy work for theft!] by letting outside professionals run their warehouse business for them.

I don’t get a commission nor do I recommend any one vendor. But, I do recommend you find a Primary Vendor and test these steps to Exit the Warehouse Business:

  1. First put a dot or a date on a box or item and see if it sells! That first step has always proven very telling to my clients. This is a must.
  2. At the same time, ask your current suppliers to provide you with a list of items you’ve bought for the past year.
  3. Create a basic truck stock inventory list that is designed to have 80% of what the Tech needs 80% of the time. It works great for my clients and it’ll be indispensable to you as well if you are able to set strict minimum and maximum stocking levels for each item. This is where professional vendors really help.
  4. Remember to impress on those who are vying to become your Primary Vendor the combined buying power you will now have when they develop their pricing.
  5. It’s also important to know that prior to doing this you’ll want to know what you’re currently paying for materials as a percentage of sales to your suppliers.
  6. After you select one Primary Vendor [no more than two if you absolutely must] have them come in and label bins and storage cabinets, address the proper type of shelving, how to keep the warehouse locked up and how to track the minimum and maximum stocking levels based on your buying habits.
  7. Placing anything that you can hang in pre-sealed plastic bags on a peg board so you can have some visual accountability.
  8. Make sure there is a very friendly credit system for returns that come back that go back to the vendor and not back into your warehouse so you don’t through off your inventory levels.

Do what you do best and let them do what they do best and you’ll both profit!

Al Levi teaches contractors how to run their businesses with less stress and more success with operating manuals. To get control of your business and grow the right way, get his Build Your Operating Manuals Online Program at today.

Also, check out Al’s latest business adventure, Zoom Franchise Company, at’s a living example of the power of manuals and more in action.

More Ways to Become a 7-Power Contractor

The 7-Power Contractor book lays out 7 simple business powers to help you run your business with Less Stress and More Success. And now, it's available in paperback, ebook, and audiobook.

The Build Your Operating Manuals (BYOM) Program provides you with 90% completed manual templates plus step-by-step instructions on how to edit them, roll them out, and train with them.

The 7-Power Contractor Radio is a podcast series hosted by Al Levi in which he shares insights on how to better run your business. Listen wherever you are.

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