Remodeling Mastery by Mark G. Richardson
In this episode, Mark G. Richardson goes into the topic of remodeling cost crisis. He goes into his top tips for what you should deal when dealing with every project you’ve dealt with whether it was 5 years ago or today. You have to keep your cost of the project to what the client is expecting.
- Material Costs – Prices change from year to year.
- Trade contractors or subcontractors – review what it was a year ago vs. today when dealing with the cost.
- Client expectations – Figure out what people are spending on appliances today vs. a few years ago. People see high end appliances online or in other homes and expect that in their own home.
- Labor – we hear about unemployment and how much it costs to hire labor.
- Your overall overhead costs. When things take longer it will cost you more.
What can you do about this? Think about what you can do about it instead of being reactive. Try to anticipate the upcoming trends when dealing with new projects. You should educate the client when it comes to cost when you are already pushing the envelope to meet their expectations. The more the client understands the better off you will be in flexibility and budgeting. Try to lock in your costs from the beginning so you aren’t losing money in the long run.
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