Did Your Deal Steal The Profits?

No one ever wants to pay more than is necessary for a product or service. We all love the idea of getting a good deal. But I’ve recently been considering the “necessary” portion of the statement above — how do I discern when it’s necessary to pay more? The main driver is value — but that can be a matter of perception and vary due to the context.

There’s always been a division in the sand between luxury brands and economy brands. Most people looking for economy prices are not walking into a designer brand store. In the same regard, many folks are not going to big box stores for high-end goods. Most of us are aware that there’s a clear difference in the quality and price — but beyond that there is a difference in the value and experience.

Business 101

Yet, regardless of whether something is luxury or economy — in order to turn a profit, there is a simple truth of business: overhead and markup.

To run any business well, an owner/company must ensure that a portion of the profits go toward keeping the business afloat. This means paying wages, insurance, location expenses such as rent and utilities, and all of the unseen costs of doing business. Furthermore, in order for a business to keep running year after year, there must be profit. Profit allows a company to grow and further invest — whether in expanding offerings or creating better systems and processes. You can read a bit more on this topic in this article: Profit Margin vs. Markup.

Most of us have at least a general understanding of this concept — but this seems to lose substance when you apply it to residential construction.

Tool Belt Bartering

Since entering the construction industry, I’ve noticed a prevailing thought that it’s normal to bargain, barter, or talk down the labor and costs for work on your home. This never really bothered me until I began to understand everything that goes into a job. I’ll admit that I’ve been guilty of looking for the best price and falling prey to the concept of getting three quotes and going with the best and most comfortable number for my pocketbook. That’s what everyone says you should do — so it must be the way to do it, right?!?

Yet, now as a Remodeling Consultant I find myself wondering: What’s created this idea of cheaper is better in this forum?

Perhaps it’s hold-over from old-school ways when you got your neighbors a six-pack and they came to help fix the fence, put up the porch light, or slap up tile in the bathroom for the day. (Just a guess.) The idea that we know someone with the right skillset to lend a hand wasn’t such a big stretch when hands-on trades were more prevalent occupations and your buddy down the block could help during the off-hours.

And, hey, some of us still have that handy pal and can get great help. However, it’s less common to find someone with this skillset and, with neighborhood culture being less neighborly — many of us don’t have the luxury of asking for some free or basically free assistance on that project we have. According to the US Bureau of Labor and Statistics, the construction trades industry is projected to have faster job growth opportunities than the average of all occupations from 2023–2033.

Carpentry or Computers

I’ve come to see the difficulty in finding the right people with the necessary skills, dedication, and right attitude. It seems that the majority pool of skilled workers in this industry are entering into retirement age and it’s becoming much more difficult to find younger workers to fill the gaps left behind.

Growing up in the ’90s, I remember a stigma centered around trade workers and the idea that working in these fields were low-end, dead-end or undesirable jobs. You didn’t go to college to become a plumber — you went to school for loftier goals such as to become a doctor, lawyer, or film-maker. This idea was reflective in the films and television shows I watched growing up. In hindsight, this stigma may be the reason it’s now much more difficult to find talented carpenters or experienced tradespeople.

Jack/Jill of All Trades

Despite the growing need and lack of talent, there’s another issue that’s a very large pink elephant in the room: not everyone with these skills can run a profitable business. I know this first-hand as I grew up with a skilled electrician who was very unsavvy in business. My father had no idea how to run a business, and in the end was unable to do much more than work very hard, and all the time, while barely paying our bills.

My father’s story is one that’s familiar to many in the trades, and why many end up folding and working for another company. It’s not simple to run a business, and if you’re the person building the product or providing the service, there’s often little left of you to also build the business.

A Tough Act

Often the skills that are needed to promote a business, oversee workers, and handle all the details of overhead and profit margin aren’t the strengths of the owner. It wasn’t my father’s — he understood electricity and alarm systems and how to fix things in the field. He wasn’t able to negotiate prices, conduct sales, or market himself. He had no interest in the things that were necessary for his business to grow — and so it flopped.

This lack of business acumen is also a detriment to everyone involved. It can deflate the owner, degrade their passion — the reason for starting the business in the first place.

As a Remodeling Consultant, I often hear stories of contractors disappearing on clients in the middle of a job, turning off phones, or just ghosting the client completely. I also hear stories of terrible, rushed work and corners cut leaving the Homeowner’s dissatisfied with the results and in the position to pay for the work to be re-done by someone else. It’s usually this one-time costly experience that pushes folks to seeking out reviews and larger well-known companies rather than the least expensive option.

Bartering The Profit Margin

There’s never a good reason for a contractor to disappear on a client. In fact, it’s my opinion that there’s no excuse that justifies shoddy workmanship or abandoning a verbal/written contract. However, as someone in residential remodeling, I can state that many people don’t understand what it costs for the value of quality and reliable work.

Talking someone down in price may be talking them out of their profit, and/or limiting them to low quality materials. It can seem like you’re getting the work for a steal — but what’s the trade-off?

Would you choose a surgeon based on the price of the surgery? Probably not. Would you expect to barter with a lawyer for free services? Nope. Why then do many of us think that it’s ok to barter with contractors? Why is the expectation that their time is worth less than a lawyer or doctor?

I find it interesting that turning a profit in construction is met with disdain when it’s expected in other professions. I wonder why that is.

When I think of my father and how hard he worked — I wish he had been able to succeed in his initial vision and been able to thrive rather than simply survive. This doesn’t mean cheating his clients but understanding what is necessary to keep his business afloat and also have more for himself and the business. Our life would have been different, and he may have been able to help more people.

Communication and Expectation

Materials are a fixed cost despite the huge swing (you can have chrome fixtures or champagne bronze — but certainly not for the same price). And the time it takes to do something well is relative to the expertise of the person doing the job. Someone may do it faster — but that’s usually indicative of more years and skill and so they should be paid more.

Keeping someone talented on your team means offering benefits, vacation time, and compensation that meets the level of work that they do. There is a big difference in the output of someone who is hastily slapping tile on the wall versus someone who does a layout to ensure the cuts will look nice when the floor is not perfectly level (which is usual in older homes).

The main issue in the industry is managing client expectations. The difference in project investment between a shower with a curtain and acrylic shower pan versus a full-tile curb-less shower with glass enclosure is vast. Everyone wants the high-end bathroom, but few want to acknowledge the swing in the initial layout of funds.

Knowing what you are buying is important — so make sure that whoever you consult with is clear about the expectations you have and that they can provide that level of service and product for the investment you agree on. But keep in mind — if it seems like a steal, it’s probably just that and something is not right. Ask more questions before you commit to moving forward such as reading reviews or asking for a referral.

Selling Dreams

The industry has been set up to fail. Entertainment and DIY programs have created a false sense that the work can be done quickly and inexpensively. Much like watching a birth on Greys Anatomy — it’s for tv and it’s not really five minutes of beautiful sweaty makeup and you have a baby. There’s more to it and a whole lot that you don’t see.

Watching a home show where a palatial bathroom was remodeled for $10,000 is not happening in 2025. Many of these shows are outdated or in a different market entirely from yours.

Beyond that, the numbers are skewed — some of these tv shows display finished spaces but the furniture and finishes aren’t part of the investment listed (even though it’s implied that they are — the Homeowner’s often would have to buy the furniture later as it’s a prop and not part of the total budget shown). Consider also that labor was provided by the show or people who donated time for the show. Sponsors provide tools, materials, and other items that would be part of the budget in a real-life scenario. Additionally, there are behind-the-scenes issues with some of these shows — even resulting in lawsuits like this one.

Honestly, it’s not how you should expect your real-life remodel to go, and these shows have set unrealistic expectations that many of us don’t even realize we hold. I’m a fan — don’t get me wrong — but I also realize it’s not reflective of what really goes on.

So, What’s The Take-Away?

Like most of your larger purchases in life, it’s important to find someone you trust to help you through the process. Scrap the idea of three quotes and decisions by budget. Remodeling is always more than you want it to be. That said, we all have to make decisions that make sense financially. I’m not saying to buy more than you can afford, just consider that it’s also about making a sound investment. Waiting to do it the right way and with the results you desire is better than investing a lot and not getting what you expect.

Don’t impulse buy your remodel.

I get it. It’s exciting to envision your room and you want to do it now! Take the time to do it right. Read reviews, talk to people about their remodeling experiences, and do some research. Work with someone who’ll help you understand the costs and offer suggestions on how to get what you want without compromising quality. It’s worth the time to ensure you end up with a beautiful space that outlasts the investment you’ve made. Better yet, the experience of the remodel should be so easy it’s (almost) forgettable once it’s complete. (Construction is messy even with an air scrubber or Build Clean unit!)

A great remodel can change the way you live in your home — and that’s what you want to remember — the new memories and how much you love being present in your new space.

If you live in the Hudson Valley and are looking to remodel your home — consider reaching out to DBS Remodel. It’s important to us to help you through the process whether it’s your first project or tenth.