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 Post subject: Margins on Builder Upgrades?
PostPosted: Tue Nov 16, 2004 9:17 am 
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Joined: Wed Nov 03, 2004 11:03 am
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I'm meeting with a local builder next week to find out if it makes sense for us to work together on a development he's got planned.

He's looking for me to give him some standard price packages, as well as upgrade packages.

I know that the builders usually take a higher margin on upgrades and I'm wondering if I should, too?

Thoughts about how much more (if any) I should charge for that?

Thanks.


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PostPosted: Tue Nov 16, 2004 12:08 pm 
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Joined: Sat Sep 25, 2004 7:42 pm
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Location: Antioch, CA. 94509
Around here, as I understand it, most flooring contractors provide the "standard" flooring that comes with the house (cheap carpet, pad, vinyl) at cost and heavily mark up the upgrades to compensate. The builders almost require this to be competative. So if the developement is slated for mostly first time buyers, you won't see as much upgrading as a more upscale developement. Also, the flooring contract requires the buyers to purchase all the flooring through them; no other flooring contractors UNTIL the house closes escrow; then of course it becomes the owners property and then they can do as they wish.


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