In the category of "two wrongs CAN make a right"...
Rapidily rising gasoline prices are definitely a concern and will affect all remodelers operating and material costs. Separately I hear many remodelers complain about clients dragging their feet longer and longer as far as making a commitment.
I suggest presenting to the client that if they lock in and move forward with design-development or an agreement now you will insulate them against these inevitable increases even if all is not finalized for their order. Future client orders and commitments will bear the brunt of the increases.
Neil Parsons
NParsons@DesignBuildPros.com
Pain, and Some Pleasure, in Pricing
Remodelers say they're paying more for building materials, trade contractors and business overhead. Gas prices are soaring, hitting remodelers with higher direct costs as well as spiking delivery costs (see today's Benchmarks for a closer look at gas prices).
But other prices are coming down, either in relative or strict terms. For instance, it's a great time to buy a house -- if you can get a loan: "Real" home prices are down to the levels of 12 years ago, according to this report. Some trade contractors and suppliers are flexible on pricing. Many manufacturers and distributors are happily supporting remodelers' marketing efforts -- story on that to come in d5R soon.
This week's question:
Which price increases or pricing "opportunities" are having the greatest impact on your business?
All opinions are welcome. Include your name if you wish to be identified. To respond, you must be logged in.
See the latest d5R discussion, No Looking Back: Big Changes and Lasting Results.
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DB-RemdNJ1122 476 days ago
