Browse Forums Building A New House Re: Profit margin of builders 21Mar 03, 2009 1:19 pm “It's just as unpleasant to get more than you bargain for as to get less” George Bernard Shaw. Re: Profit margin of builders 26Mar 03, 2009 6:46 pm Built 36sq Plantation "Retreat" on 4460m2 at Spring Mountain, Qld In Living and landscaping.. >>> ... http://retreatspring.blogspot.com Re: Profit margin of builders 28Mar 04, 2009 9:38 pm Built 36sq Plantation "Retreat" on 4460m2 at Spring Mountain, Qld In Living and landscaping.. >>> ... http://retreatspring.blogspot.com Re: Profit margin of builders 30Mar 05, 2009 12:41 pm A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Profit margin of builders 33Mar 05, 2009 8:16 pm A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Profit margin of builders 35Mar 05, 2009 8:41 pm A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Profit margin of builders 36Mar 05, 2009 10:42 pm stressed85 Well the builders mark up on our house is 25%.. So.. I dont know how much their administration expenses or advertising expenses are.. But i'm pretty sure they make more than 10k a house. Thats what id heard too. Between 20-25% Living in Caloundra Thread****** Lovin my house all finished!!! Now tackling the HUGE task of the Garden- viewtopic.php?f=31&t=14782 Re: Profit margin of builders 37Mar 05, 2009 11:54 pm Guys, a 25% markup does not represent a 25% gross margin (gross profit).
A 25% markup on cost would only give a business a 20% gross margin. To make a 25% gross margin the builder would have to mark up his costs by 33.33%. It's something of a moot point anyway because a builder is not a manufacturer or a retailer and cannot just mark up the 'goods' he sells by a fixed amount. He has a much more complex equation to deal with, involving differing margins on a wide range of materials and complex labour costs across a series of trades. Re: Profit margin of builders 38Mar 06, 2009 7:42 am I think a builder who can make a 10% profit (after paying for all parts and labour) and can minimise their risk would be doing well.
In good times, this figure is probably a bit higher. Right now, I suspect there is some reduction in this figure. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Profit magin of builders 39Mar 24, 2009 2:06 pm As material costs are easing, are builders reducing their prices? If not, what would it take for that to happen? Re: Profit magin of builders 40Mar 24, 2009 4:01 pm thlo As material costs are easing, are builders reducing their prices? If not, what would it take for that to happen? I don't know what the basis is for your comment... I can say that materials I am buying are increasing and anything with a global price like steel, aluminium or any form of energy, is suffering from the exchange rate fluctuations. For prices to reflect cost reductions there needs to be 1) A cost reduction, & 2) Stability at the new level of cost. Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Look at your bill from the electricity company. It should detail the charges. You will need to do some estimating and some calculations. Then charge the… 8 4301 Site works are just about to start on our build with Blueprint in Midvale. viewtopic.php?f=31&t=106894 2 4014 Hi all, We are looking to build a new two storey house in western Sydney. Can anyone recommend a smallish builder to go with? We are trying to stay away from the big… 0 12259 |