Tips To Increase Remodeling Project Profits - Page 3 - Remodeling - Contractor Talk

Tips To Increase Remodeling Project Profits

 
Thread Tools Search this Thread Display Modes
Old 01-30-2019, 08:19 PM   #41
edward trowelhands
 
Golden view's Avatar
 
Trade: Diplomat
Join Date: Feb 2012
Location: PDX
Posts: 4,233
Rewards Points: 5,642

Re: Tips To Increase Remodeling Project Profits


It's all about efficiency.
  • Work on one job all day.
  • Get most materials delivered for free.
  • Make 1-2 supply runs per week, at the beginning or end of day.
  • Sequence the job right.
  • Don't buy tools that don't make you real money.
  • Sub out anything that's not your strength. If they cost $110 per hour but are twice as fast as you, it's worth it.
__________________
Half of all people are below average.
Golden view is offline  
The Following 2 Users Say Thank You to Golden view For This Useful Post:
insighter242 (01-30-2019), overanalyze (01-30-2019)

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 01-30-2019, 08:49 PM   #42
Pro
 
Tom M's Avatar
 
Trade: GC/ Interior & Exterior Remodeling
Join Date: Jan 2007
Location: Bergen County, NJ
Posts: 9,078
Rewards Points: 10,730

Re: Tips To Increase Remodeling Project Profits


Forgot it. It's hurry up and slow down. A gazillion material options all over the place. You have to stop and read directions for things you've done 100 times before because of a new concept, contraption or bright idea by some marketing genius. No only will stock the bulk of it either. Even then the best laid plans deteriorate. Shipping damage, defects and all of that excludes bringing shoemaker crap up to code or crazy owners.
Tom M is online now  
The Following 2 Users Say Thank You to Tom M For This Useful Post:
MarkJames (01-30-2019), overanalyze (02-03-2019)
Old 01-30-2019, 10:08 PM   #43
Pro
 
Ohio painter's Avatar
 
Trade: Painting and wallpaper
Join Date: Dec 2011
Location: Central Ohio
Posts: 1,433
Rewards Points: 2,608

Re: Tips To Increase Remodeling Project Profits


In our world of providing a quality paint finish I think it is all about having a consistent process. We approach every interior repaint the same way to accomplish the finish we want to provide. I know how to price it and the guys know how to do it. Still always looking for ways to improve. Over lunch a week or so ago we discussed our process and how to improve it. The guys told me they want more battery powered lights.
Ohio painter is offline  
The Following User Says Thank You to Ohio painter For This Useful Post:
overanalyze (02-03-2019)
   
 
Old 01-30-2019, 10:17 PM   #44
Member
 
insighter242's Avatar
 
Trade: Roof
Join Date: May 2018
Posts: 37
Rewards Points: 80

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Golden view View Post
It's all about efficiency.
  • Work on one job all day.
  • Get most materials delivered for free.
  • Make 1-2 supply runs per week, at the beginning or end of day.
  • Sequence the job right.
  • Don't buy tools that don't make you real money.
  • Sub out anything that's not your strength. If they cost $110 per hour but are twice as fast as you, it's worth it.
Excellent list - some seem simple but they are powerful. I really like the efficiency we gain by not multitasking .
insighter242 is offline  
Old 01-30-2019, 10:21 PM   #45
Member
 
insighter242's Avatar
 
Trade: Roof
Join Date: May 2018
Posts: 37
Rewards Points: 80

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Ohio painter View Post
In our world of providing a quality paint finish I think it is all about having a consistent process. We approach every interior repaint the same way to accomplish the finish we want to provide. I know how to price it and the guys know how to do it. Still always looking for ways to improve. Over lunch a week or so ago we discussed our process and how to improve it. The guys told me they want more battery powered lights.
Got it , standardizing , but constantly looking to evolve .

I was recently reading about sears going bankrupt , they were iconic and a pioneer in many things that we see , but failed to evolve . A good lesson for all of us
insighter242 is offline  
The Following User Says Thank You to insighter242 For This Useful Post:
Ohio painter (01-31-2019)
Old 01-30-2019, 10:30 PM   #46
Member
 
insighter242's Avatar
 
Trade: Roof
Join Date: May 2018
Posts: 37
Rewards Points: 80

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by avenge View Post
I have a job client wants 3/4" x 5" distressed hickory flooring I'll just lay some LVP next to the hickory and tell them "It looks the same let's go with that for the same cost".
Do you mean to say - you will tell what you want without listening to what the customer wants ?

Even if that's the case , why would a customer agree to pay extra , most of my clients seem to have done good homework , researching prices and options - as they come across lot of lazy contractors who try to BS

Do you have any other useful tips ?
insighter242 is offline  
Old 01-30-2019, 11:24 PM   #47
Pro
 
TheConstruct's Avatar
 
Trade: Carpentry
Join Date: Dec 2017
Location: Kamloops BC
Posts: 407
Rewards Points: 704

Re: Tips To Increase Remodeling Project Profits


Wow this one was a wild read.

My approach is to do high end workmanship regardless of the quality of material being used but that doesn't make a piece of MDF a piece of maple.
TheConstruct is offline  
Old 01-30-2019, 11:29 PM   #48
Pro
 
Stunt Carpenter's Avatar
 
Trade: Carpentry
Join Date: Dec 2011
Location: Airdrie
Posts: 1,320
Rewards Points: 1,392

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
Do you mean to say - you will tell what you want without listening to what the customer wants ?



Even if that's the case , why would a customer agree to pay extra , most of my clients seem to have done good homework , researching prices and options - as they come across lot of lazy contractors who try to BS



Do you have any other useful tips ?


How does using a less expensive product increase your profit in anyway unless you are using a less expensive product and charging for a more expensive product?
Stunt Carpenter is offline  
The Following 3 Users Say Thank You to Stunt Carpenter For This Useful Post:
Californiadecks (01-31-2019), donerightwyo (02-03-2019), TheConstruct (01-30-2019)
Old 01-31-2019, 12:01 AM   #49
Pro
 
Texas Wax's Avatar
 
Trade: Executor of special operations
Join Date: Jan 2012
Location: DFW
Posts: 3,738
Rewards Points: 1,348

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Stunt Carpenter View Post
How does using a less expensive product increase your profit in anyway unless you are using a less expensive product and charging for a more expensive product?
It's easy, the value for the customer is something that looks like the real thing but costs less. Actually a very good approach to sales. One of the best ways to keep your profit margins high in a comparative market segment. Giving the top end $, lessor $ look a likes and el cheapo $...most people go with the middle.

The middle can work very well if that's the highest markup and highest profit margin. Seriously you the contractor can be very happy and the customer is generally very happy. Just have to be very honest about the lessor products and manage the customers expectations .... otherwise often it's viewed a bait and switch like tactic to them.
__________________
...as the page loads, so go the days of our lives, at CT
Texas Wax is offline  
The Following 2 Users Say Thank You to Texas Wax For This Useful Post:
hdavis (01-31-2019), insighter242 (02-03-2019)
Old 01-31-2019, 12:25 AM   #50
Pro
 
avenge's Avatar
 
Trade: Remodeling
Join Date: Sep 2008
Location: Not here
Posts: 2,947
Rewards Points: 398

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
I use luxury viny tile which looks high end inplace of hard wood flooring , because it met all the functionality and met the customers budget .
No, above is your quote, how the hell do you even compare LVP to hardwood? In no way does it look high end. If I could convince my clients that LVP looks high end then I could also persuade them the cost is high.

My clients trust my advice and I allow them to choose to an extent, I refuse to install anything I know is junk. I'm the contractor it's my job to inform them not vice versa and I haven't been in business for 30 years on referrals only by bullsh*tting.

Fact is if you know how to bid and perform every aspect of a job correctly, use quality materials, do the job as well as possible, build a reputation then the easiest way to increase profits is by increasing your rates. If you have the knowledge everything else is just common sense, of course common sense is commonly lacking.

I'm basically a one man show but I do some pretty good size jobs, other than bidding the job correctly planning is the best tool I have to sustain a profit.

Two things I never skimp on materials and tools.

Quote:
Originally Posted by insighter242 View Post
Do you mean to say - you will tell what you want without listening to what the customer wants ?

Even if that's the case , why would a customer agree to pay extra , most of my clients seem to have done good homework , researching prices and options - as they come across lot of lazy contractors who try to BS

Do you have any other useful tips ?
avenge is offline  
Old 01-31-2019, 01:12 AM   #51
Pro
 
hdavis's Avatar
 
Trade: remodeling
Join Date: Feb 2012
Location: CoastalME
Posts: 21,687
Rewards Points: 2,726

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Stunt Carpenter View Post
How does using a less expensive product increase your profit in anyway unless you are using a less expensive product and charging for a more expensive product?
I've seen this done on cost conscious customers. Contract states cost savings during the build get split 59 - 50 between the contractor and the client.

Go through and down sell, but what is on the table is the difference in cost of materials. Price goes down, markup, etc stay the same, so profits go up.

Other change orders get handled as usual.
hdavis is offline  
The Following User Says Thank You to hdavis For This Useful Post:
SmallTownGuy (01-31-2019)
Old 02-03-2019, 12:10 AM   #52
Member
 
insighter242's Avatar
 
Trade: Roof
Join Date: May 2018
Posts: 37
Rewards Points: 80

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Stunt Carpenter View Post
How does using a less expensive product increase your profit in anyway unless you are using a less expensive product and charging for a more expensive product?
Valid qn . My experience taught that , when I listen to customers needs and respond appropriately , they don't penny pinch . As long as I offer solutions , they don't go crazy and question that , hey this is $2.50 per sq ft on home depot why are you charging me more.

To Summarize , solve and make better margins . Just to restate , the solution doesn't always involve a change in material , and of course i always doesn't involve reduction in price.Sometimes the price increases but the value also increases .

Apart from what you have mentioned do you have any other strategies that helped you ?
insighter242 is offline  
Old 02-03-2019, 12:19 AM   #53
Member
 
insighter242's Avatar
 
Trade: Roof
Join Date: May 2018
Posts: 37
Rewards Points: 80

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Texas Wax View Post
It's easy, the value for the customer is something that looks like the real thing but costs less. Actually a very good approach to sales. One of the best ways to keep your profit margins high in a comparative market segment. Giving the top end $, lessor $ look a likes and el cheapo $...most people go with the middle.

The middle can work very well if that's the highest markup and highest profit margin. Seriously you the contractor can be very happy and the customer is generally very happy. Just have to be very honest about the lessor products and manage the customers expectations .... otherwise often it's viewed a bait and switch like tactic to them.
Yes , well said . To be frank , it might be my market specific , but customers are pretty well educated about these options , as they ask around , google , think through it for many months some times . If some one wants to update their flooring , or their kitchen , its not a one day decision , some clients have been thinking through this for years . ofcourse I am not saying - all clients have realistic expectations , There is definitely the customer who wants a cheaper price but more functionality . And I don't necessarily find fault with it , we all have fallacies in our thinking , but irrespective of their initial opinion , customers with open mind are the easiest to work with . Because they are willing to think through . Sometimes they don't even approve my solution , but they still go with me , as they recognized the fact that - I am willing to listen to them . Glad to be in the contracting world , where basic customer service is enough to win clients over .
insighter242 is offline  
Old 02-03-2019, 01:08 AM   #54
Member
 
insighter242's Avatar
 
Trade: Roof
Join Date: May 2018
Posts: 37
Rewards Points: 80

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by avenge View Post
No, above is your quote, how the hell do you even compare LVP to hardwood? In no way does it look high end. If I could convince my clients that LVP looks high end then I could also persuade them the cost is high.

My clients trust my advice and I allow them to choose to an extent, I refuse to install anything I know is junk. I'm the contractor it's my job to inform them not vice versa and I haven't been in business for 30 years on referrals only by bullsh*tting.

Fact is if you know how to bid and perform every aspect of a job correctly, use quality materials, do the job as well as possible, build a reputation then the easiest way to increase profits is by increasing your rates. If you have the knowledge everything else is just common sense, of course common sense is commonly lacking.

I'm basically a one man show but I do some pretty good size jobs, other than bidding the job correctly planning is the best tool I have to sustain a profit.

Two things I never skimp on materials and tools.
how the f do you not know how I compare LVP to hardwood . I can give a two page answer . But in short , both are materials used for flooring .

you can convince something is high price because it looks good ?? , I can not . You seem pretty intelligent , may be that intelligence is helping you do that . But come on man , why do you want to hide all these intelligent tactics , atleast point us in right direction .

I bet there is no better definition of bullshtting than this :

"I allow them to choose to an extent, I refuse to install anything I know is junk. I'm the contractor it's my job to inform them not vice versa "

who the hell are you to decide what they want to use , your job is to provide the options , explain the pros and cons . If you disagree - rather than making a blanket statement , imagine I am a customer and I want to use LVP as flooring , would you say - it is junk and I won't install it.

ok, so LVP is junk for you . So the millions of owners , contractors , builders , manufactures who are buying , installing , making are "bullshtting" .

How about you give some rationale of why LVP is junk . So we can understand your thinking. Is this the way you advised your customers for 30 yrs ? And next time , don't use that as a qualification . People resort to fillers , when they have nothing better to say . Try explaining your position rather than - I am the king of this planet , you are all my slaves .

Good that you mentioned abt common sense - do you think its common sense to compare one flooring material to another , you seem to disagree. Is it common sense to classify something as junk with out considering the needs , market and situation .

Wonderful , you don't skimp on materials , can you tell what materials you use for various jobs .

or lets try to answer this qn :

1. Is a 2001 toyota camry junk for you ?
Not for a college kid . The sales man who drives 70 miles a day considers this junk

2. Is a 2010 prius junk for you

Not for the sales guy above . Yes for a Electrical engineer who just graduated

or to make it easy Is a lamborghini junk for you ?

Not for millions of people , but yes for the multi millionaire who has a bugatti divo in his garage .

To sum up , how do you feel if a home owner says - you are a one man show for 30 yrs , you don't have a big company , you don't have a flashy website , you don't have a appointment taker , you don't have a bookkeeper so you are junk , not only me , no customer should use such a junk.All of us should go to that multi national builder. what would you say to him ?
insighter242 is offline  
Old 02-03-2019, 01:19 AM   #55
Member
 
insighter242's Avatar
 
Trade: Roof
Join Date: May 2018
Posts: 37
Rewards Points: 80

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by hdavis View Post
I've seen this done on cost conscious customers. Contract states cost savings during the build get split 59 - 50 between the contractor and the client.

Go through and down sell, but what is on the table is the difference in cost of materials. Price goes down, markup, etc stay the same, so profits go up.

Other change orders get handled as usual.

Cost conscious but naive customers will fall for it. A cost conscious , well researched customer will have this as the first question ( assuming you meant to say 60-40 split) and would have a predefined material SKU list as part of the contract .

Like in any other trade - there will be naive and educated customers. And at the same time - honest and unscrupulous businesses.
insighter242 is offline  
Old 02-03-2019, 01:46 AM   #56
Pro
 
avenge's Avatar
 
Trade: Remodeling
Join Date: Sep 2008
Location: Not here
Posts: 2,947
Rewards Points: 398

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
how the f do you not know how I compare LVP to hardwood . I can give a two page answer . But in short , both are materials used for flooring .

you can convince something is high price because it looks good ?? , I can not . You seem pretty intelligent , may be that intelligence is helping you do that . But come on man , why do you want to hide all these intelligent tactics , atleast point us in right direction .

I have no clue what that even means.

I bet there is no better definition of bullshtting than this :

"I allow them to choose to an extent, I refuse to install anything I know is junk. I'm the contractor it's my job to inform them not vice versa "

who the hell are you to decide what they want to use , your job is to provide the options , explain the pros and cons . If you disagree - rather than making a blanket statement , imagine I am a customer and I want to use LVP as flooring , would you say - it is junk and I won't install it.

Let me rephrase that it's my job as a contractor to educate the customer. And yes I won't just work with or install just anything find someone else. Nowhere did I say LVP was junk nor would I not install it. You're comparing LVP to hardwoods in my world there is no comparison.

ok, so LVP is junk for you . So the millions of owners , contractors , builders , manufactures who are buying , installing , making are "bullshtting" .

How about you give some rationale of why LVP is junk . So we can understand your thinking. Is this the way you advised your customers for 30 yrs ? And next time , don't use that as a qualification . People resort to fillers , when they have nothing better to say . Try explaining your position rather than - I am the king of this planet , you are all my slaves .

Good that you mentioned abt common sense - do you think its common sense to compare one flooring material to another , you seem to disagree. Is it common sense to classify something as junk with out considering the needs , market and situation .

Wonderful , you don't skimp on materials , can you tell what materials you use for various jobs .

or lets try to answer this qn :

1. Is a 2001 toyota camry junk for you ?
Not for a college kid . The sales man who drives 70 miles a day considers this junk

2. Is a 2010 prius junk for you

Not for the sales guy above . Yes for a Electrical engineer who just graduated

or to make it easy Is a lamborghini junk for you ?

Not for millions of people , but yes for the multi millionaire who has a bugatti divo in his garage .

To sum up , how do you feel if a home owner says - you are a one man show for 30 yrs , you don't have a big company , you don't have a flashy website , you don't have a appointment taker , you don't have a bookkeeper so you are junk , not only me , no customer should use such a junk.All of us should go to that multi national builder. what would you say to him ?
A client wouldn't say that to me, they already know something about me and have already seen my work in person, if they did I'd say "Bye-bye". I think you're confused you stated you use LVP because it looks high end instead of hardwood. I said there's no comparison but you can't seem to comprehend that, or anything it seems.
avenge is offline  
Old 02-03-2019, 09:22 AM   #57
Pro
 
hdavis's Avatar
 
Trade: remodeling
Join Date: Feb 2012
Location: CoastalME
Posts: 21,687
Rewards Points: 2,726

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by insighter242 View Post
Cost conscious but naive customers will fall for it. A cost conscious , well researched customer will have this as the first question ( assuming you meant to say 60-40 split) and would have a predefined material SKU list as part of the contract .

Like in any other trade - there will be naive and educated customers. And at the same time - honest and unscrupulous businesses.
None if that matches up to the reality of that type of contract.
hdavis is offline  
Old 02-03-2019, 02:50 PM   #58
GC/carpenter
 
Californiadecks's Avatar
 
Trade: Decking, Railing, Carpenter/General Contractor
Join Date: Nov 2011
Location: Anaheim Hills, California (OC)
Posts: 34,852
Rewards Points: 10,780

Re: Tips To Increase Remodeling Project Profits


I've never given anyone a price with the clients knowledge taken in consideration. It's just something I've never been concerned about. Matters none what they know or don't know, my pricing structure isn't any different.


Mike.
_______________
Californiadecks is offline  
The Following 3 Users Say Thank You to Californiadecks For This Useful Post:
griz (02-03-2019), hdavis (02-03-2019), KAP (02-03-2019)
Old 02-03-2019, 03:33 PM   #59
Pro
 
Texas Wax's Avatar
 
Trade: Executor of special operations
Join Date: Jan 2012
Location: DFW
Posts: 3,738
Rewards Points: 1,348

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Californiadecks View Post
I've never given anyone a price with the clients knowledge taken in consideration. It's just something I've never been concerned about. Matters none what they know or don't know, my pricing structure isn't any different.

Don't think the OP realizes the different types of remodeling contractors. He seems to be a gun-ho type that is a good salesman, going for volume from a broad net of marketing/lead sources. Which is fine.

It is not the word of mouth artisan-custom designbuild GC approach, that you and a number of others have. Efficiency being your end result is of a high quality and that stands as your product and sales pitch. Compromise on materials only waters down your brand. What your ideal and actual costumer base expects.

Successful Top end remodelers, LOL never started in the middle of the market and became successful in the high end demographic. If they did, they abandoned those middle level tactics for a much different set.
__________________
...as the page loads, so go the days of our lives, at CT
Texas Wax is offline  
The Following 6 Users Say Thank You to Texas Wax For This Useful Post:
avenge (02-03-2019), Californiadecks (02-03-2019), griz (02-03-2019), hdavis (02-03-2019), Jaws (02-12-2019), SmallTownGuy (02-03-2019)
Old 02-03-2019, 03:50 PM   #60
Fire up the BBQ
 
griz's Avatar
 
Trade: GC
Join Date: Nov 2009
Location: CA
Posts: 21,234
Rewards Points: 1,038

Re: Tips To Increase Remodeling Project Profits


Quote:
Originally Posted by Texas Wax View Post
Don't think the OP realizes the different types of remodeling contractors. He seems to be a gun-ho type that is a good salesman, going for volume from a broad net of marketing/lead sources. Which is fine.

It is not the word of mouth artisan-custom designbuild GC approach, that you and a number of others have. Efficiency being your end result is of a high quality and that stands as your product and sales pitch. Compromise on materials only waters down your brand. What your ideal and actual costumer base expects.

Successful Top end remodelers, LOL never started in the middle of the market and became successful in the high end demographic. If they did, they abandoned those middle level tactics for a much different set.
VERY WELL SAID!!!!....

Advertisement

__________________
SOME JOBS JUST AREN'T WORTH DOING:
griz is offline  
The Following User Says Thank You to griz For This Useful Post:
Texas Wax (02-03-2019)


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Current Project livingsoulsdie Carpentry Picture Post 6 07-21-2012 10:14 PM
Next Project .....I need your 2 cents ccappaul General Discussion 10 06-09-2012 12:50 PM
Helpful tips for the EPAs new mandate Paulie Lead RRP Discussion 20 04-10-2011 11:56 AM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?