Well for 2017 I have a whole new strategy or idea of how I want to accomplish my goals and now that I am on day 5 of the year I already learned some valuable information......always.......... always....... ask questions.....cause you can seriously be floored.
Here's the scoop.
I have been bidding on cabinetry for a builder who is building new homes nearby and will be selling them in the $700,000 range. These houses are on the larger side 2500 to 3500 square feet, 3 to 5 bedrooms, 4 bathrooms, a laundry room, and snack bar areas outside of each room. The kitchen areas are pretty large with a 48" x 60" island. Some of the houses have two master bedrooms and bathrooms. After I sent my bid, I wanted to find out if I was in the ball park on my pricing and see where I was at, and maybe I could or would need to adjust..........BAHAHAHAHAHAHAHAHAHA!!!!!!..............
I found out I could adjust my pricing and PAY the Builder to use my cabinets!! That sounds like a good idea for me to not make any money. And as a friend recently told me, "April, you are not doing this business for practice, you need to make money." I believe, and have always been taught to have fair pricing, no gouging. I need a fair profit in order to stay in business.
You know what else I found out? You're not going to believe this, so I just have to tell....the estimator told me my price was 3x higher than his other bids. Now I don't know if he's lying, and I take everyone, I mean everyone at their word......but I have learned over the years, (mostly by Mr. Know-it-All), that most people lie.... which makes me sad.
But here's the point. First I said, "May I ask what these homes will be selling at?" And he said, "yes of course, they will be in the $700,000 range." I said, "So you're telling me, that when a builder is selling a house in the $700,000 range they expect to pay $11,000 for cabinetry for the entire house?" He said, "well, $11,000 to $15,000 is about right." Now I am floored. I'm just thinking at this point that I don't want to purchase a house in the $700,000 range and know that the builder only spent $11,000 worth of cabinetry in the entire house. What kind of crappy cabinetry is that??? Do the doors fall off after a couple of years? Are the cabinets finished properly? Do children build the cabinets? What kind of wood are they using? And my mind just goes on and on............
So I learned something new and that is not every builder is the same, not all builders create homes cheaply, but when they do they make sure they sell their houses at an extremely high price. ;)
I told you I learned something new today.
your custom cabinet girl