Pricing
Do you have a minimum price or price per square foot?
Due to the difficulty of making profits pencil out, we rarely do jobs that cost less than $1000 except screen and recoats. It ties up our equipment from being able to meet the demand our company has for service. The situations are handled on a case by case basis, but it simply doesn't pencil out to sand a 50 square foot foyer for example.
Most jobs are honestly not estimated for our company on simply a per square foot basis. We find this to be relevant for wood floor material pricing. However, we are a full service hardwood flooring contractor. Simply stated, we provide labor AND all materials so that we can ensure consistent delivery of a quality floor.
Pricing per square foot is a bad model for two reasons:
1) It plays Russian roulette with the profitability of a company depending on job size. Unprofitable or low profit contractors will ALWAYS deliver less service because they have less time to be around for the job and usually end up rushing or cutting corners.
2) It is such an inaccurate measure regarding the consistently changing pricepoint of materials and doesn't allow our company profit structure to maintain a healthy balance. If our company is not profitable, then we simply will not be able to survive and take care of our customers over the years. This is critical because it is one of the fundamental principles by which we do business. |