Markup Vs Margin

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A recent survey by the Association of Professional Builders revealed that nearly 40% of residential home builders did not understand the difference between markup and margin!

This is something EVERY custom home builder must know in order to predict profitability and avoid leaving money on the table when pricing contracts and variations.

Unfortunately, many builders THINK they are pricing their jobs based on a desired margin whether that be 20%, 25% or 33%.

However, what they are really adding is a markup which results in a margin of 16%, 20% or 25%.

That is a huge difference between expected profitability and actual profit being applied…

Throw in some cost overruns and onsite delays and it’s easy to see why these builders end up making little or no net profit on their jobs leaving them effectively ‘working for a salary’.

That is no way to run a business!

To learn more, download the Professional Builders' Secrets To Increasing Margins.

Click on the link below to download for free now.
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