Where can you save? What works and what doesn’t.
This is part 1 of 4 articles on how a home owner can save on their remodeling. Today we start part 1.
Getting your own materials.
First thing is how does a contractor make money? Car mechanics make $100 an hour. Comcast charges about $125 per hour, ATT about $125 per hour. Of this the installer may make $35 an hour with benefits, then the cost of overhead like advertising, truck, tools, office staff and ,so on that money gets whittled down to about $10 left over for profits. So, the phone company does not really clear $100 an hour, they have expenses. And the customers pay for those expenses. The profit, well that allows the business to grow. And yes, the owner, the person who takes the risks makes money.
Companies mark up materials they supply and install, and will only service products they supply. Why is that? Well first off is no one will warranty a product the customer supplies, why would they? What if it was a return with parts missing or it doesn’t work right. Most professionals will install homeowner materials, but they wont warranty them. Businesses markup materials to be able to afford to come back out on service issues if they come up. If they didn’t do this they could not afford to provide and warranty the products they install. If your service provider, lets say the plumber, puts in a toilet and it leaks, he owes you a cost free repair, no questions asked.
Homeowners looking to save money will sometimes offer to provide materials. We will install them, but if we run short of tile lets say, you owe us a trip charge to come back another day, thats only fair. If you get a screaming deal on paint, $1 a gallon, you will save money, but my markup still needs to cover my business expenses so my labor costs may be a little bit higher. We need X amount of dollars to stay in business. If we can’t make money on materials, we make it up on labor.
So, how can you save on materials? If you find products deeply discounted and they work for your remodel you will save money, just ask your contractor if he will install them. Keep in mind, you are responsible to make sure they are adequate in quality and amount to complete the job. You won’t have a warranty, but for many products that isn’t important. Tile, lumber, paint, and other items rarely have problems, but remember, if the paint isn’t shaded the right color, that’s your problem.
Last question is, why do contractors buy such expensive materials? You would too if your job depended on satisfying clients. Good stuff installs faster and lasts longer and fails less. Value is what you get out of something and price is what you paid. If you want to get materials to save money, ask your contractor what those savings will cost you.
Paul Lesieur-Silvertree Construction a Twin Cities Remodeler
Next week: Can I help?
Paul Lesieur General Remodel