Lumber prices have increased by as much as 180% since this time last year, yet few homeowners are aware of this. All they see is a higher bid, or worse, a change order they weren't expecting. Here, a leading NAHB remodeler reveals how he is handling the issue.
1. Get suppliers to lock in the price for 90 days.
Without at least a 90-Day guarantee, homeowners and remodelers could be blindsided by exponential increases in lumber just a few weeks after the initial estimate.
2. Don't underbid. Advertise transparency as a strength.
A low estimate may get a homeowner through the door, but a surprise price increase won't keep them happy. Instead, give a fair estimate and explain that it may be higher than other options, but your company is being honest about the volatile material situation.
3. Use the National Association of Home Builders and other sources as educational tools for homeowners.
By giving homeowners easy to digest data, remodelers can give themselves credibility and win over clients.
Watch the video to learn more and hear the other four tips, plus a bonus tip, on navigating rising lumber prices as a remodeler.