Before embarking on an apartment renovation business idea, it is essential to do at least a little market research to assess the likely profitability of this business.
There are two different approaches to paying for apartment renovation work, on which the success of a business greatly depends
1) One approach is used mainly for complex apartment renovation . For example, when apartments are being finished in new buildings, handed over according to a draft version, or major repairs are being made in an old apartment after its purchase.
In these cases, payment for work is often assigned depending on the area of the apartment.
For example, a contract is concluded under which all repairs are carried out at a cost of $ 3,000 per square meter.
When concluding such contracts, it is necessary to list in advance all the works that are included in the repair amount and separately highlight those that are not included in it. It is also necessary to specify in advance which materials are included in the cost of repairs, and which will have to be purchased separately.
This approach, on the one hand, allows you to increase the total income from the work performed, and on the other hand, carries the risk of reducing profitability in case of insufficient quality and involvement of third-party specialists. Payment for repairs per square meter is more often used in a team form of work, when all work is performed by team members and there is no need to involve subcontractors.
2) Another approach in the apartment renovation business is to draw up an estimate and separately pay for each type of work. This option is more suitable for novice entrepreneurs — singles or those who do not perform all types of construction work.
In this case, you can negotiate with the customer to perform only certain types of repairs, offering to involve third-party specialists for a fee. For example, to negotiate the laying of tiles in the bathroom, but to involve specialists for laying pipes and installing plumbing equipment. In this case, you must be able to draw up an estimate for the performance of your work, but be sure to voice the amount of additional costs to the customer.
In any case, it is necessary to conduct a marketing research that will allow you to draw up a reliable and reliable estimate of the total costs even at the stage of concluding a contract.
What you need to know before doing home renovation?
Firstly, you need to know exactly the prices for each type of work, for example: wall plastering — 300 rubles / m2, wall putty — 100 rubles / m2, tiling — 450 rubles / m2 and so on. This will allow you to quickly and accurately draw up an estimate based on the actual amount of work.
The rates for work must be competitive, that is, not higher than those offered on the labor market.
But you should not underestimate your prices too much, as this raises customer doubts about the quality of work.
Secondly, it is necessary to be very well versed in the cost and quality of materials for repairs. The customer at the stage of concluding the contract, as a rule, is interested in the final cost of the repair. Therefore, the estimate for repairs should be as accurate as possible, otherwise you can be left without payment if the customer spends all the money on materials.
Thirdly, you need to know exactly the prices for the work of the involved specialists so that the payment for their work does not exceed the customer’s expectations and, of course, does not affect the overall profitability of the repair.
Gathering this information in advance in a home renovation market research will enable you to start your business confidently and professionally.