Screw and Glue

What Is a Good Profit Margin for a Remodeling Business?
Episode Description
If 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% margins
But after factoring in real costs, many are closer to:
15%–20% gross margin
 Single-digit net profit
A healthier target for a remodeling business:
  • 50%–60% gross margin
  • 10%–20% net profit
This gives you enough room to:
  •  Absorb unexpected costs 
  •  Maintain stable cash flow 
  •  Invest in growth 
  •  Operate without constant pressure 
Why Most Remodelers Miss Their Numbers
Profit 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 Margins
Low 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 what gives your business stability and control.
Supplier Strategy & Profit Margins
Your supplier plays a direct role in your margin.
If your supplier creates:
  •  Multiple sourcing trips 
  •  Missing parts 
  •  Long lead times 
  •  Limited product access 
That increases labor cost and reduces profitability.
Remodelers who improve margins don’t just raise prices.
They reduce friction.
About Soke Systems
Soke Systems is a bath system supplier and dealer program built to help remodelers improve operational efficiency and protect margin.
Dealers receive:
  •  Full access to acrylic wall systems and bath products 
  •  No buy-in 
  •  No minimum order quantity 
  •  Fast shipping 
  •  Simplified sourcing 
  •  Flexible growth structure 
The goal is simple:
Reduce hidden costs.
 Reduce friction.
 Protect margin.
If you're evaluating how to improve your numbers:
👉 https://SokeSystems.com
Apply to become a dealer — no cost, no pressure.
Key Takeaway
A good profit margin isn’t just about pricing higher.
It’s about understanding:
  •  Your real costs 
  •  Your operational structure 
  •  Where you’re losing money 
Because the difference between:
Busy
 and
 Profitable
…is usually in the details.
About Screw & Glue
Screw & Glue is a podcast for growth-minded bathroom remodelers doing $750K–$5M per year who want:
  •  Better margins 
  •  Smarter supplier strategy 
  •  Cleaner operations 
  •  Predictable growth 
No fluff. No DIY.
Just real conversations about how remodeling businesses actually run.

What is Screw and Glue?

Screw & Glue is the podcast for contractors, remodelers, and professionals in the bathroom remodeling industry who want to build smarter, more profitable businesses.

Each episode dives into the real-world side of bath remodeling — from acrylic shower wall systems and tile-look panels to installation efficiency, supplier relationships, product access, and contractor marketing strategies. We break down what’s working in today’s shower and bathroom market, what’s costing contractors money, and how to increase margins without increasing overhead.

Whether you’re searching for a reliable acrylic shower wall supplier, exploring wholesale bathroom product opportunities, or looking to streamline your remodel process, Screw & Glue delivers practical insights, industry conversations, and actionable takeaways you can apply immediately.

We cover:

• Acrylic shower walls and tile-look panel systems
• Subway, hexagon, and herringbone shower designs
• Installation methods and labor cost comparisons
• Dealer programs and supplier relationships
• Marketing strategies for bathroom remodelers
• Scaling a bath remodeling business
• Industry trends and product innovation

This isn’t a sales pitch. It’s an insider conversation about the business of bathroom remodeling — what works, what doesn’t, and how to build a system that sticks.

New episodes weekly.

What Is a Good Profit Margin for a Remodeling Business?
________________

You finish a job.
Customer’s happy.
Crew got through it.
Money hit the account.
And for a second, it feels like a win.
But then you look at the numbers… and something doesn’t add up.
You’re booked out.
You’re working full days.
You’ve got jobs lined up.
So why does it still feel tight?
Why does one bad week throw everything off?
Why does it feel like you’re doing a lot of work… for not a lot left over?
Most guys don’t say it out loud.
But they’re all thinking it.
“Am I actually making what I should be making?”
________________

So let’s ask it directly:
What is a good profit margin for a remodeling business?
And more importantly…
What should your numbers actually look like if you want to build something stable… not just stay busy?
________________

This question comes up because nobody really teaches it.
Most remodelers learn how to build.
They don’t learn how to measure.
You pick up pricing from:
* Past jobs
* Other contractors
* What feels competitive
And over time, you build a number that “works.”
Until it doesn’t.
Part of the confusion is how the industry talks about profit.
You’ll hear:
“30% margin is good.”
“Shoot for 40%.”
“Depends on your market.”
That sounds helpful… but it’s not.
Because nobody defines what they mean.
Are they talking about markup?
Gross margin?
Net?
Are they including overhead?
Are they factoring in the jobs that go sideways?
Most of the time… no.
And that’s where remodelers get stuck.
They think they’re at one number.
They’re actually somewhere else.
________________

Let’s strip this down.
When we talk about profit, there are really two numbers that matter:
Gross profit
Net profit
Gross profit is what’s left after:
* Materials
* Direct labor
That’s your job-level profitability.
Net profit is what’s left after:
* Overhead
* Marketing
* Insurance
* Vehicles
* Admin
* Everything it takes to run the business
That’s your real number.
Here’s where it gets interesting.
A lot of remodelers think they’re running:
25–30% margins.
But when you actually run the math… they’re closer to:
15–20% gross.
And then after overhead?
Single digits.
Sometimes less.
And the reason is simple.
They’re not counting everything.
They’re not accounting for:
* Shadow labor
* Procurement time
* Small delays
* Callbacks
* Overhead per job
So the job looks profitable on paper…
But the business doesn’t feel profitable in reality.
A healthy target?
If you want stability:
You should be aiming for something in the range of:
50–60% gross margin
Which usually lands you somewhere around:
10–20% net
And even that depends on how tight your operation is.
That’s not aggressive.
That’s functional.
That’s what gives you room to:
* Absorb mistakes
* Handle slow periods
* Actually pay yourself
________________

Now zoom out.
Because this isn’t just about numbers.
This is about control.
If your margins are tight…
You lose flexibility.
You can’t:
* Hire confidently
* Scale production
* Invest in marketing
* Take on better projects
Everything feels reactive.
And here’s the bigger issue.
Low margins don’t just limit growth.
They create dependency.
You become dependent on:
* Constant volume
* Constant leads
* Constant closing
Because you need every job to keep the machine moving.
But what happens when volume slows down?
What happens when your lead cost goes up?
What happens when one job goes bad?
That’s where margin matters.
Margin is what gives you space.
It gives you decision-making power.
And most remodelers don’t realize…
The biggest driver of margin isn’t just price.
It’s structure.
How you source materials.
How you manage labor.
How many variables exist inside a job.
That’s where leverage actually lives.
________________

Here’s the tradeoff.
You can run a business at low margins.
Plenty of guys do.
But it comes with friction.
More stress.
More pressure.
Less room for error.
And small problems become big ones.
A missing part turns into:
Half a day lost.
A delay turns into:
Schedule stacking.
A callback turns into:
Unpaid labor.
And when your margins are thin…
You feel all of it.
There’s no buffer.
And here’s the part most people don’t think about.
The tighter your margin…
The more control your supplier has over your business.
Because if:
Prices fluctuate
Lead times stretch
Access is restricted
You don’t have room to absorb it.
You either:
Pass it to the customer and risk losing the job
Or:
Eat it and lose margin
Neither one is a good position.
________________

I’ve seen this play out a lot.
Guy’s doing good volume.
Booked out.
Feels like things are working.
But every job has a little friction.
A few supply runs.
A couple delays.
Nothing major.
Individually, it doesn’t look like much.
But stacked across 20–30 jobs?
It adds up.
And at the end of the month, he’s asking:
“Where did the money go?”
It didn’t disappear.
It leaked.
Through things he never priced for.
________________

If you’re trying to get a handle on your margins, keep it simple.
First.
Stop guessing your margin.
Actually calculate it.
Not what you think it is… what it actually is after everything.
Second.
Understand your all-in cost per job.
Materials, labor, shadow labor, overhead.
If you don’t know that number, you’re pricing blind.
Third.
Reduce friction before you raise prices.
Most margin problems aren’t solved by charging more.
They’re solved by tightening the system.
Fewer trips.
Fewer variables.
Better sourcing.
Cleaner installs.
That’s where margin improves.
________________

If you’re asking what a good profit margin is…
You’re already asking a better question than most.
But the real move isn’t chasing a number.
It’s understanding what creates the number.
Because margin isn’t just pricing.
It’s structure.
It’s decisions.
It’s how your business actually runs.
And if you tighten that…
The numbers follow.
I’ll see you next week on Screw & Glue.