The main issue is price. Homeowners don鈥檛 know that builders don鈥檛 think like remodelers. They don鈥檛 know that subs used to working in unoccupied space may not be tolerated in an occupied home. If you can鈥檛 convince clients that your methods and services are better, then you need to bid like a builder. Here鈥檚 what that means:
- Bid the client鈥檚 job, not your job. If your standards are higher, show the lower price and explain the difference. But let the client decide.
- Bid material and trade contractors based purely on price. This means getting out of your comfort cocoon and doing some true comparison shopping.
- Eliminate contingency money. Builders build their bid, and subcontractors take the risk.
- Eliminate all fudge from the labor estimate. If in-house labor costs exceed the lowest subcontractor bid, use the sub.
- Include supervision time as a line item, not in overhead. This will lower your price.
You won鈥檛 like this approach, and I don鈥檛 blame you. It鈥檚 a long way from how you did business a year ago, but it鈥檚 the reality of today鈥檚 business environment.
鈥擫es Cunningham is president of Business Networks, a peer-review organization for the remodeling and insurance restoration industries. les@businessnetworks.com.