You’ve decided to start your own remodeling business. Now you’re wondering how to make it more profitable, right? This article will help you with the basics of setting prices for materials and labor, finding out what your overhead costs are, knowing when it’s time to hire an assistant so that your workload is manageable, and knowing how to turn away clients if the job doesn’t seem feasible from the beginning.
1) Research the costs of materials and labor
The first step to determining your prices is to research how much it will cost you to buy all of the materials needed for a given project, as well as how much you should charge per hour for each person on your team who works directly on the project.
2) Determine how much profit you want to make on each project
To determine your pricing, you’ll need to decide what percentage of profit that you want to earn from a given project, or in other words, how much money you would like to take home from the job after all expenses have been paid. [It’s important to note that not many remodeling businesses actually make 100% of the revenue from a given project.]