{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Screw and Glue","title":"What Is a Good Profit Margin for a Remodeling Business?","html":"","width":"100%","height":180,"duration":484,"description":"What Is a Good Profit Margin for a Remodeling Business?Episode DescriptionIf you’ve ever searched: what is a good profit margin for contractors  remodeling business profit margin  construction gross vs net profit  how much profit should a contractor make You’re not alone.Most bathroom remodelers are busy… but unsure if they’re actually profitable.They’re booking jobs. They’re installing consistently. But the numbers don’t feel as strong as they should.In this episode of Screw & Glue, we break down what a real, healthy profit margin looks like in a remodeling business — and why most contractors are operating lower than they think.What You’ll Learn The difference between gross profit vs net profit in remodeling  What a healthy bathroom remodel profit margin actually looks like  Why most contractors overestimate their margins  How hidden costs (labor, procurement, overhead) reduce real profit  Why being “booked out” doesn’t guarantee profitability  How margin impacts growth, hiring, and stability What Is a Good Profit Margin in Remodeling?Most remodelers assume they’re running:25%–30% marginsBut after factoring in real costs, many are closer to:15%–20% gross margin Single-digit net profitA healthier target for a remodeling business:50%–60% gross margin10%–20% net profitThis gives you enough room to: Absorb unexpected costs  Maintain stable cash flow  Invest in growth  Operate without constant pressure Why Most Remodelers Miss Their NumbersProfit margin issues usually come from: Confusing markup with margin  Underestimating labor costs  Ignoring procurement time (material runs, delays)  Not allocating overhead per job  Pricing based on competitors instead of actual cost These small gaps compound across jobs — and slowly erode profit.The Real Impact of Low MarginsLow margins create: Cash flow pressure  Stress during slow periods  Dependence on constant job volume  Limited ability to hire or scale  Increased risk when jobs go sideways Margin isn’t just a number.It’s...","thumbnail_url":"https://img.transistorcdn.com/SspMxmqeTN7QQquvp_UL_RnDxTkGIT6adMlW5aOMrpA/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS8zNDdj/YzNlNDZlZDgyYTQx/YzAwM2M2YmZkZGNk/NmRjMi5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}