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.
