Markup Madness - Or Brilliance?
Widespread Myth and Destruction
Remodeling Magazine - Hanley Wood
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Three Ways We Can Work Together:
1) A Coach will work with you doing the parts of a project you don't have the skills, knowledge, or tools for.
2) A Coach will be your hired project manager and also perform manual work on your project.
3) As a turnkey design/build contractor.
1. A recent consumer magazine survey found that the greatest satisfaction in a remodeling project was among owners that were directly involved.
2. All home improvement contractors have overhead that contributes 35-50% of the price they charge. See Links
3. Companies mark up their basic costs 45-100% (or more) to make a profit.
4. Most companies (including the big box retailers) use specialist contractors and incorporate their cost into the projects price before their markup.
5. Home improvement sales people receive pay, commission, or both.
6. Companies generally have a project manager, supervisor, or working foreman to oversee a project.
7. Project Managers assist in the purchase of goods and services and help home owners with selections.
8. Home & Garden and do-it-yourself T\/ shows have a highly skilled professional working with the homeowners to:
- Set & maintain a quality level
- Develop and keep a reasonable schedule
- Develop a budget & obtain fair prices
- Deal with the unexpected.
Questions:
- If you could eliminate facts #2, 3, 4, and 5, could you save a lot of money?
- If you did or helped with some of the work ("sweat equity"), could you save more?
If you are willing to do the administrative work for your project, be involved in the design, selection of materials,and subcontractors, you can add more value to your home and save!
lf you are willing to assist with the work, you can save even more!
In this relationship, you're the Boss