I’m trying to start a remodel business. I figured I can start off by gutting properties and build from there especially because I have plenty of helpers who can gut but not build. I just wondering what would’ve a good price scale
Investor · NJ · Member since 2018 · 869 posts · 921 votes
7y
A good price for who? The contractor or the consumer?
As for being a contractor, you need to figure out all of your overhead: labor, workman's compensation insurances, payroll & sales taxes, general liability insurance, truck expenses, tool expenses, office consumables, advertising etc. Another huge expense for demo crews is carting the stuff they tear out.
You have to figure out how much all of that stuff cost you per hour. Then figure out how many productive/billable hours a day you can actually work your crew and divide (overhead÷billable hrs). Then you need to figure out how much profit you'd like to make and multiply.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
7y
Demolition is a great business . There are a few companies in my area thats all they do . And they are busy and make good money . Pricing is regional . Lets say a contractor pays his guys who do carpentry $35 an hour ., His burdened labor costs are $60 an hour , so he bills them out at $95 an hour to make a profit . now if you do demo , the skill level is much lower than a carpenter , their pay would be around $17 an hour . Your costs would be around $35 an hour . You bill at around $55 an hour . And the contractors would love you . Because they could be on other jobs while you are doing demo .