Here at the MK Remodeling Blog, we like to talk about saving money.
The remodeling business can be expensive. There is no denying that. That’s why we put together this blog, so our customers can make informed decisions on their remodeling needs. We do it because we care.
With that in mind, you can understand our frustration when people assume any markup on a job goes directly to profit. Markupandprofit.com just posted an extremely informative article about what a contractor should charge and dispelled the myth that markup equals profit.
As the article points out, every job has overhead costs. A look at a few of the most common overhead expenses:
· Advertising
· Sales commission
· Job supervision
· Office expenses
· Insurance
· Accounting and legal fees
· Licenses
· Taxes
· Employee expenses
· Salary
As the article summarizes, “Markup isn’t profit, it is the money needed to make sure the contractor can complete your job, pay his bills and if he’s doing things right, make a profit on the job as well. Just like your doctor, your mechanic, your grocer and every other business.”
Now, getting a good deal is a great thing, and we’ve outlined plenty of ways to do that on this blog. When it comes to remodeling, your home is the likely the single largest investment of your life. Take care of it. It’s not the place to cut corners.
In remodeling, a deal that sounds too good to be true probably is. Drastically cutting costs means drastically cutting corners around quality and safety.
We know because we’ve had to repair that shoddy work. Maybe it’s low-grade materials and poor planning that lead a floor to be damaged by the roots of a nearby tree. Or it’s not conforming to code, putting the integrity of the structure – and the safety of its residents – at risk.
At MK Remodeling & Design, we will strive to be as open and honest as possible in the building and billing process. Because we care. We won’t put our name on anything less than the best.
