Taking the Mystery Out of Remodeling – by Reva Kussmaul

You Say You Want to Make a What? Profit!

What goes without saying yet you may not understand is – you want your contractor to make a profit.  Really?  Yes, really.  When someone starts a business many times they are in it because they love what they do and want to do more of it.  It’s also the “American Dream” to own your own business and make a profit in that business.

Now, many contractors are not business people so they don’t always have absolute claity about how to price jobs so profit isn’t included.

To keep the equation simple let’s say a contractor’s business overhead is $5,000.00 a month or $60,000.00 a year.  If a contractor has a $60,000.00 project that is going to take 2 months it makes sense to price the job at $70,000.00 to just about cover overhead and that’s “assuming” they’re spot-on about the business’s overhead.

Well, that’s breaking even but what about paying everyone and profit?  When there is no allowance for profit and/or cost overruns – oh, oh!

Not only is the contractor running in the red this is where they have to go about the business of robbing Peter to pay Paul and leaving your job to start another just to get the start-up check to cover finishing your job.

Wonder how nightmares begin?  This is one way.  How do you know if the contractor is making enough?  Ask.  You want to be clear you want your job finished and there will be no disappearing.  I know it seems like asking about this is unnecessary, however, I’ve talked to hundreds of people who say “I got a guy who gave me what I thought was a great deal and my house is still tore up and it’s been 6 months!”

Ask questions.  Don’t think, “but if I ask they’ll raise their price.”  It’s that kind of avoidance or vagueness that creates remodel nightmares.

If you don’t know how or what to ask, call me or buy my book or both.

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