A. "It depends on the type of
contract. I like cost-plus-fixed-fee deals, and in
that case the client sees my numbers. But if
it’s a fixed bid, I don’t show
them."
— Byron Papa
"I show overhead and profit as an operating
expense, but I burden my labor so my gross profit
number is lower. I show this to design-build
clients who need this information to feel
comfortable with our pricing. It has rarely been a
problem."
— Peter Feinmann
"We show these numbers only on time and
materials work. Most people don’t expect
to see profit from you any more than they do when
buying a car or furniture, or when paying a doctor
for surgery."
— Mike Weiss
"I never disclose any of my costs to clients,
except for a special-order item. When you buy a new
car, do you get a breakdown of overhead and profit?
No, you just get a list of options with
corresponding prices. That’s what I do
— a price for the basic project and a list
of options."
— Steve Klitsch
"I will often share my numbers with a
prospective client, but only after I have a gut
feeling that they are sincere and not shopping.
I’ve always felt that honesty is the best
policy. I don’t like to hide the numbers
and I don’t have a problem telling clients
what I need to charge to stay in business."
— Bill Medina
"No, because the high percentage of markup
necessary in residential remodeling only produces a
red flag with the homeowner. The alternative
— artificially inflating line items to
reduce overhead and profit percentages —
isn’t very sound business either."
— Bill Gaver
"I usually submit a schedule of values that
adequately substantiates costs without showing
overhead and profit. It would be just one more
thing for them to obsess over and get anxious
about. Instead, I rely on good marketing and my
sales package to make them confident that
they’re getting their money’s
worth."
— Sue Cosentini
"I don’t show these costs, although
occasionally I’ll explain for every two
hours I’m on the job, I spend one hour on
paperwork and upkeep. I don’t dicker over
the price either, unless the client wants ideas for
legitimate changes to bring down the cost."
— Rick Stacy
"I focus on what they are getting instead of the
insurance, taxes, bookkeeping, and other stuff that
they never see."
— Howard Ferree