Monday 18 May 2020

I'm Afraid I Can't Make any Money on Rebuild

Posted by at 6:19 AM

I'm Afraid I Can't Make any Money on Rebuild

A contractor recently said this to me.

I accept that not all contractors know how to make a good profit on rebuild, but the right question is whether there is good money to be made.

We all have experienced that moment when the light comes on, and we suddenly understand something we didn't previously grasp, and we ask ourselves in amazement, "why didn't I see that before?" We just don't know what we don't know until we know it. That moment of insight changes everything!

Consider this formula for assembling a 50% profit on rebuild on any size job:

  • Can I make just 30% off labor? Xactimate pays $110 PH in Seattle to hang drywall. How much do you have to pay a sub to do this? Can you make just 30% - YES!
  • Can I make just 20% off materials? State Farm concluded after years of rebuild work that the typical contractor buys only 85% of the materials listed on the material list - there's 15%. Add to this buying flooring at 45% below XA pricing and other discount buying options. Can you make just 20% – YES!
  • Can I count on 20% Overhead and Profit – YES!

Add those percentages of profit and you will reach a 50% profit on every job every time!

Do you know how to do this? Maybe Not. But I do, and I can help you do it too!