Markup and Profit
4/6/2021 at 11:10:23 PM
I do remodels. According to Michael C. Stone the minimum Markup for a remodeler should be 50% (1.5). And that's on everything. labour, materials, as well as trades.
Do other remodelers follow this exactly here in Canada?
especially with material price increases, especially on lumber, I am more frequently getting shock factors by clients. Even when I explain the price increase on materials from the beginning.
What problems are you having?
4/7/2021 at 10:34:50 AM
It's like that here in Alberta as well, Typically i do a cost + 20-30% to stay close to competition. but i am sometimes underbid by the handymen who do terrible jobs. their markups are around 10-15% and i just can't go that low.
4/7/2021 at 3:54:14 PM
We do renovations, remodels
We do not get anywhere near 50% mark up as there are too many hook and ladder guys out there with no insurance, overhead, office etc. plus they can disappear in a heartbeat.
We start out all calls with our labor rate per day is$XXX and lumber has risen 30% still want us to come and quote otherwise we spend an average of 4 hours putting a quote together for a unlicensed, no insurance carrying guy to get the job.
Its only going to get harder, we work with clients who understand quality, costs of doing business with bricks and mortar and communication between us and them.
Hope this helps
4/8/2021 at 1:07:22 PM
Hi Mark
Absolutely 1.5 markup if you want to have a business that you are running and not running you.
I've followed Michael for over 15 years and he has been a wealth of knowledge and excellent advice.
You will have quality clients that if you back up your outstanding, excellent work and willing to go the extra mile for them you wont have any troubles.
Cheers
Dave
Search the TrustedPros directory and discover the best contractors in your area.
Find your home service pro
