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VirginiaV4100's avatar
VirginiaV4100
Contributor 2
8 days ago

How To Provide Quality Construction at a Reasonable Price?

I hear so many customers who hire these large companies that charge high prices like $25,000.00 for a shower replacement or a whole bath remodel for upwards of $40,000.00. These prices are ridiculous for the average homeowner. 

Our company can complete a solid surface shower change out for around $10,000.00 if there are no rotten damage under old shower or floor covering replacement unless requested by the homeowner.

I know there are cases that prices can increase depending on the homeowners' choices but let be for real. Those really high costs are just overcharging or taking advantage of people. 

4 Replies

  • I completely understand your frustrations. I have some electrical companies in my area that charge 10x the price for things that I do and people go for it, I truly feel so bad for these customers sometimes. It's crazy. 

  • I truly believe as they said in the Jobber Summit that 2026 is the start of the blue collar years. People know large companies are only out for profits and salaries. Small operations are going to make a huge comeback and really start to shake things up. Keep your overhead tight, keep an eye on inventory, keep the fat low. Pass those savings along to the customer and you will do extremely well!

  • ZacRadcat's avatar
    ZacRadcat
    Contributor 3

    It’s like tools.

    You can go buy Milwaukee Tool, DeWalt, or Hilti—they’re more expensive, but reliable, proven, and consistent. Or you can grab a cheaper off-brand. It might work great… or it might fail mid-job and cost you more in the long run.

    That’s the same decision customers are making with remodeling.

    Higher pricing doesn’t always mean someone is overcharging. It can—but not always. Larger companies typically have higher overhead. That can come from licensing, insurance, warranties, office staff, systems, and overall structure. Or yes, sometimes they’re simply targeting higher profit margins.

    Let’s look at it like this, Let’s say you are Company A. You’re lean and have very little overhead. Your total cost on this job (labor + materials) is $8,000.
    You want a 20% margin so you charge $10,000.

    Now you have Company B. These guys have been around forever. They are much larger  with more overhead, larger crews, marketing ect. Their total cost is $20,000.
    Interestingly, they want the same margin, 20% so they charge $25,000.

    Same job. Very different pricing.

    That’s just business.

    Some customers are a better fit for your Company A, price-sensitive, value-focused. Others prefer Company B which is more structure, perceived security, or brand confidence. I tell people all the time that we aren't the best fit for everyone. We have built our company to meet specific customers needs and not everyone is going fit that mold.

    I think the real takeaway for you reading through your post is that if you can do a job for $10K that another company is charging $20K+ for, you’re in a powerful position. You don’t have to stay the cheapest. Let’s say in this situation you raise your price from 10k to $16K.  

    You’re still well below the larger competitor, the customer is still saving money, and your profit jumps significantly. You position yourself as higher value, not just cheaper. At that point you’re making $8K profit, while Company B might still be charging more and only making $5K.

    That’s the advantage of running a lean operation. You get to choose if want to compete on price or compete on profit

    Most companies don’t have that flexibility, but you do.    

    • VirginiaV4100's avatar
      VirginiaV4100
      Contributor 2

      I also have licensing, insurance, warranties, office staff, systems. The same bath shouldn't take any larger size crew. If they are charging for people that aren't even working on this job then that's wrong with the except of office staff and management. I buy the best tools money can buy. I also have between 15% to 20% overhead. But I do volume, I don't include any more people to a project than necessary. I don't hire more people than we need, if I need more people, I have subcontractors I can turn to complete projects. You are right I pay my people very well, so I do run a lean company. That way I'm giving my people great pay and the customer a much better price. I only have to advertise very little due to my contacts and word of mouth. We also do the same on kitchen remodels. I can provide quality materials and craftsmanship. My subcontractors are the same.