According to remodeling business coach Shawn McCadden, comparing contractor markups can be pointless and very risky.
“The decision about what costs or expenses go above or below the gross profit line can be different at different remodeling companies,” McCadden writes. “Therefore the markup each company will need to use to cover overhead costs and planned net profit will be different.”
It also helps to know that McCadden found fewer than 20 percent of remodelers actually know the true costs of being in business. Does copying costs seem like a good idea now?