Today we’re going to talk about remodeling jobs and what happens when you step into that type of work. There are many of these jobs going on right now, and most of them have big budgets. They range from $20k to $50k, and even $500k, and it doesn’t look like this trend will stop anytime soon.
What I’ve noticed is that designers are getting into construction jobs, where there is a lot of money changing hands, but they’re only ending up with a tiny piece of it. Quite frankly, they are the heart and the soul of the job, so this is just not right.
That’s why it’s essential to learn how not to leave any money on the table.
You may remember me mentioning before that when you’re fee-based, you can calculate your fees based on the total approved budget. If you or your client first bring in a contractor, and he immediately calls out a budget, you would think you could base your fee on 10-12% of that budget. This amount should cover your design concept, finish specifications, and all your construction support.
The problem with doing this is that once you get into the job, you realize that the contractor almost always believes that the lowest bid will get the job. His budget includes items like $100 light fixtures or $25 per sq. ft. tiles.
We know those scenarios don’t even exist at DIY retailers. So, when you get through with all the specifications and go to price it all, it’s really a $200k job, not a $100k one.
For the designer, after all that work, you “should have” been paid twice as much as what you did.
But, because you relied on that first number presented by the contractor, and you didn’t dig any deeper before accepting the job, you left a lot of your payday on the table.
Watch the video above where I share another scenario where letting the contractor take control over the job can prevent you from selling any product on the project at all. Even though you are the one who’s sticking with the whole job and ensuring everything comes together beautifully, you could end up not getting paid for the amount of work you put into it.
Sound familiar? Yes, I know… but I also know how you can fix it!
I want to invite you to my new, FREE webinar series, Make Big Money on Remodels. It’s a three-part series where I’ll show you how to turn those time-sucking, no-profit remodel jobs into money makers for your business.
In this FREE training, I will explain how to avoid big money mistakes, create win-win situations, and get well-paid so that you can OWN your remodeling projects.
Until next time, design something beautiful and get paid what you’re worth.