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Tips To Increase Remodeling Project Profits

 
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Old 01-29-2019, 11:26 PM   #1
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Tips To Increase Remodeling Project Profits


Asking a pretty open ended question here .

Experienced contractors - whatever might be the trade , how did you increase your margins .

I am excluding the obvious ones as most of us would already be working in that direction for ex Charge your customer more .

I always try to reduce my costs and find better ways of doing things .

Somethings I did:

1. continuously try to find better sources of Materials - Building supplies auction houses , clearances , returns. I find good quality but better priced materials

2. Achieve high end look with alternative materials

3.reach out to experts in a trade - sometimes they suggest unique solutions which not only fix the problem but also in a affordable way

Please add your thoughts - hopefully others can also benefit
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Old 01-30-2019, 12:25 AM   #2
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
Asking a pretty open ended question here .

Experienced contractors - whatever might be the trade , how did you increase your margins .

I am excluding the obvious ones as most of us would already be working in that direction for ex Charge your customer more .

I always try to reduce my costs and find better ways of doing things .

Somethings I did:

1. continuously try to find better sources of Materials - Building supplies auction houses , clearances , returns. I find good quality but better priced materials

2. Achieve high end look with alternative materials

3.reach out to experts in a trade - sometimes they suggest unique solutions which not only fix the problem but also in a affordable way

Please add your thoughts - hopefully others can also benefit
comes down to more like how efficient is your operation?

proper bidding, cut down on trips to supply house etc....

as far as your #1, how do you have the time to shop like this?

bid it & buy the materials...

#2, dangerous ground, high end look with alternative materials....

going to bite you hard on the ass, checkbook & reputation....

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Old 01-30-2019, 01:33 AM   #3
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
Asking a pretty open ended question here .



Experienced contractors - whatever might be the trade , how did you increase your margins .



I am excluding the obvious ones as most of us would already be working in that direction for ex Charge your customer more .



I always try to reduce my costs and find better ways of doing things .



Somethings I did:



1. continuously try to find better sources of Materials - Building supplies auction houses , clearances , returns. I find good quality but better priced materials



2. Achieve high end look with alternative materials



3.reach out to experts in a trade - sometimes they suggest unique solutions which not only fix the problem but also in a affordable way



Please add your thoughts - hopefully others can also benefit


I find even though I pay a little more (sometimes) the knowledge and personal attention my supply yard gives me, saves me a ton of headaches and in turn money. They are a huge part of my operation.

I also found that specializing is when I really started making more money. You get tooled up for it, your guys get good at it and your sales show your expertise, which a client can smell right away. Allows you to be higher priced because of the confidence factor. Which is huge.


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Old 01-30-2019, 01:35 AM   #4
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Re: Tips To Increase Remodeling Project Profits


You achieve a high end look by giving them high end material with high quality work. There's no magic bullet that will allow you to fake this.


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Old 01-30-2019, 03:37 AM   #5
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Californiadecks View Post
You achieve a high end look by giving them high end material with high quality work. There's no magic bullet that will allow you to fake this.


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"high end look" "high end material" and "high quality " are all subjective. If you disagree , tell me an example of a high end car And we can discuss further

I look at the market , customer - their requirements , targets and will try to customize .

Also you seem to be assuming that "alternative" material is equivalent to cheap pr "fake ". Any use of a material that is innovative and meets the function/intended use will be considered an alternative use .

Hope you provide some insightful ideas to the community with out prejudice .
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Old 01-30-2019, 03:53 AM   #6
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Californiadecks View Post
You achieve a high end look by giving them high end material with high quality work. There's no magic bullet that will allow you to fake this.


Mike.
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Quote:
Originally Posted by griz View Post
comes down to more like how efficient is your operation?

proper bidding, cut down on trips to supply house etc....

as far as your #1, how do you have the time to shop like this?

bid it & buy the materials...

#2, dangerous ground, high end look with alternative materials....

going to bite you hard on the ass, checkbook & reputation....
For 1: Its simple , its not a process which needs lots of intelligence , so I automate it via software and a virtual assistant who I pay whopping $5/hr . Ofcourse the expectation should be clear and we shouldn't expect the VA or software to be brainy.

For 2 : can you elaborate on why it will bite my ass - so far , these were the projects with best customer satisfaction and referrals as it seems they were tired of hearing lazy and "not so bright" contractors who even didn't hear out what the customer wanted and propose functional solutions

They were happy that I listened to them and researched/offered solutions with their intended budget and functionality .

But ofcourse definitely getting my ass bitten is no fun...so want to be careful in future and most of all don't to be called "another stupid contractor " .

Also please add any other similar points to keep in mind . It helps
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Old 01-30-2019, 06:52 AM   #7
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Re: Tips To Increase Remodeling Project Profits


i kind of agree with the " specializing comment

or at least job selection.
its tough to turned down a job at times , but maybe sometimes we should.

truly interview your client as they are interviewing you.
if they are an extreme , anal person who you know will need extra time,or are overly detail oriented ,( which they have a right to be ) you have to implement more time on in your bid for a job like that.


plan your work , work your plan as dad used to say

maybe actually meet all the subs there at once , and talk with your foremen , and make a plan or " scope of work " with sa time line .
maybe you can shave off a few days that way
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Old 01-30-2019, 10:31 AM   #8
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Re: Tips To Increase Remodeling Project Profits


Biggest thing for us is bringing more in house. Not everybody can do that, you have to have the management in place to handle it properly.

At this point, All trim and cabinets and most paint, most decks, cornice and standard remodeling work is going to be done in house with our personnel. There is a profit on top of the loaded cost of those hands. Used to do almost all the framing, recently started subbing it out.

Besides standard work and the cabinet shop, we also own our own dumpsters, do a lot of our own minor grading, underground ect... we also have in house design/selection personell and are charging top dollar for that. It does set a barrier of Entry to using our services as a company, many people are not willing to pay what we charge for the design and upfront work before we actually pull the trigger on setting forms Etc.

That's fine. Just have to be willing to play the game I know you will lose four five in a row sometimes before you get back into chips.

While you can get creative and not always go the highest end route, say instead of hanging solid Timber beams from a ceiling you can make box beams and distress them. Save thousands of dollars and looks really good to anybody but a carpenter. LOL. Doesn't look bad but doesn't look like the real thing to me. It is what it is when you have a set budget and are trying to achieve a certain look.

Parade of Homes house last year some awards like usual, the floor tile was $2.75. Found an excellent deal on it, very rare but worth the extra effort for 4000 ft. Normally we just buy it out of my buddy's showroom. My normal allowance on a 7 figure home is 10 bucks a fult... tats 30k PLUS my Mark up she saved. I also charged for the lady in the office dealing with finding that tile

Windows, doors, tile underlayment, waterproofing , Windows, appliances, cabinets ect... should all have certain standards you don't drop below no matter what. In my opinion

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Old 01-30-2019, 10:33 AM   #9
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
"high end look" "high end material" and "high quality " are all subjective. If you disagree , tell me an example of a high end car And we can discuss further



I look at the market , customer - their requirements , targets and will try to customize .



Also you seem to be assuming that "alternative" material is equivalent to cheap pr "fake ". Any use of a material that is innovative and meets the function/intended use will be considered an alternative use .



Hope you provide some insightful ideas to the community with out prejudice .


That's easy. Don't give your customer a cubic zerconia and tell them it's a diamond. That's not subjective, that's a lie. That's my point.


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Old 01-30-2019, 10:34 AM   #10
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Californiadecks View Post
That's easy. Don't give your customer a cubic zerconia and tell them it's a diamond. That's not subjective, that's a lie. That's my point.


Mike.
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Yep. We'll also screw you over reputation wise for being a cheap ass.

Nothing wrong with offering alternative Solutions as long as they have a minimum standard, but need to be honest about the differences. If I spec Andersen 100 windows I do not try to sell them is E-Series or Marvin's xcetera

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Old 01-30-2019, 01:17 PM   #11
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Californiadecks View Post
That's easy. Don't give your customer a cubic zerconia and tell them it's a diamond. That's not subjective, that's a lie. That's my point.


Mike.
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How do you know what my customers were asking ? how do you know what I was giving ? how do you know for sure that it is inferior material ? how do you also know that I lie to them that the inferior material is something else ? also how do you know that customers won't even know the difference between white zirconium and diamond ?

Unless you have a permanent mental disability or a crappy life , why don't you try not assuming , or atleast staying away if you don't have anything to add .
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Old 01-30-2019, 01:20 PM   #12
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Re: Tips To Increase Remodeling Project Profits


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Originally Posted by insighter242 View Post
How do you know what my customers were asking ? how do you know what I was giving ? how do you know for sure that it is inferior material ? how do you also know that I lie to them that the inferior material is something else ? also how do you know that customers won't even know the difference between white zirconium and diamond ?

Unless you have a permanent mental disability or a crappy life , why don't you try not assuming , or atleast staying away if you don't have anything to add .
Lmao. You come here and post a question, a couple of the most veteran and successful members (griz and cali) throw some stuff out and you insult them?

You seem like you read a lot of Dale Carnegie.

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Old 01-30-2019, 01:21 PM   #13
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Jaws View Post
Yep. We'll also screw you over reputation wise for being a cheap ass.

Nothing wrong with offering alternative Solutions as long as they have a minimum standard, but need to be honest about the differences. If I spec Andersen 100 windows I do not try to sell them is E-Series or Marvin's xcetera

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Ofcourse if you lie to me , I will make sure to send you to jail along with a jumbo prep h pack ...ha ha
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Old 01-30-2019, 01:23 PM   #14
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Re: Tips To Increase Remodeling Project Profits


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Ofcourse if you lie to me , I will make sure to send you to jail along with a jumbo prep h pack ...ha ha
Good luck getting criminal charges for civil liability.... if that was the case a bunch of **** bag contractors would be in jail... never met one who went to jail except for taxs

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Old 01-30-2019, 01:29 PM   #15
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Re: Tips To Increase Remodeling Project Profits


Quote:
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Lmao. You come here and post a question, a couple of the most veteran and successful members (griz and cali) throw some stuff out and you insult them?

You seem like you read a lot of Dale Carnegie.

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dale carnegie didn't say to suckh every ** , but if its working fr you , keep doing .

May be its your words that command respect but not your "post count ".

I am not as well read as you are - you know who "dale carnegie" is , so you must definitely know about authority-misinfluence tendency . Look it up and let us know what u think . Hint : It's a classic strategy used in pilot training

Last edited by insighter242; 01-30-2019 at 01:33 PM.
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Old 01-30-2019, 01:34 PM   #16
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Re: Tips To Increase Remodeling Project Profits


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Originally Posted by insighter242 View Post
dale carnegie didn't say to suckh every ** , but if its working fr you , keep doing .

May be its your words that command respect but not your "post count ".

I am not as well read as you are - you know who "dale carnegie" is , so you must definitely know about authority-misinfluence tendency . Look it up and let us know what u think . Hint : It's a classic strategy used in pilot training
I know what it is.

I didn't ask you for any tips.

Class has nothing to do with post count either.

Have a nice day

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Old 01-30-2019, 01:38 PM   #17
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Re: Tips To Increase Remodeling Project Profits


Talk about first impressions.....
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Old 01-30-2019, 01:42 PM   #18
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Re: Tips To Increase Remodeling Project Profits


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Good luck getting criminal charges for civil liability.... if that was the case a bunch of **** bag contractors would be in jail... never met one who went to jail except for taxs

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not common , because of the litigation costs involved , but contractors went to jail on many occasions . I am sure you could find many examples if you look up . These would happen if the project cost justifies taking legal action .

a sample : https://www.theadvocate.com/baton_ro...62b801a96.html
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Old 01-30-2019, 01:42 PM   #19
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Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
not common , because of the litigation costs involved , but contractors went to jail on many occasions . I am sure you could find many examples if you look up . These would happen if the project cost justifies taking legal action .

a sample : https://www.theadvocate.com/baton_ro...62b801a96.html
Good to hear. Wish it happened more often

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Old 01-30-2019, 01:48 PM   #20
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Re: Tips To Increase Remodeling Project Profits


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I know what it is.

I didn't ask you for any tips.

Class has nothing to do with post count either.

Have a nice day

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Similarly I didn't ask to be accused , and I also didn't ask you to school me about "dale carnegie " .

Looks like you agree with me that "post count" doesn't matter . Happy to find a common ground .

Thanks for answering the original post and adding valuable content .

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