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RetiredInteriorDesigner

Ask Me Anything - Retired Interior Designer Here

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Hi

What is the normal profit margin for the ID?

Hmmm....

sensitive topic actually... what is the profit margin...

To be honest there's no one straightforward answer to your question. but then again the answer isn't really that complicated either.

Straight to the point, it can be as low as 0% ( or even making a loss ) or as high as 100 % ( or more )

why do I say 0%

Its actually very rare for a renovation project to lose money ( maybe for new birds that are in this line doing quotations without seniors cross checking )

Two very very simple example for this would be the following

Mary hires ID to put wallpaper at 4 walls in living room.

price is agreed at X dollars. contract signed.

ID then to his horror realized that the cost price is actually X plus 50 dollars.

therefore ID loses 50 dollars on this project.

Mary hires ID to put wallpaper at 4 walls in living room (using 1 roll)

price agreed at 10 dollars, contract signed. owner goes on holiday

ID then finds supplier to put up wall paper, cost is 9 dollars.

So ID profit is 1 dollar.

after installing ID goes to home and check, but when he is about to leave he slips and accidentally damages 1 side of the wall.

because there is not enough left over to redo that one wall, ID has no choice but to buy a new roll, which is at another 10 dollars.

at the end of the day, ID loses 9 dollars on this project.

as high as 100% or more

this is another extreme , same as the above, it is very very very rare for such a thing to happen. maybe 10 years ago IDs can pull off this stunt

how? customers never do their own homework, put too much faith in IDs. No need to explain too much liao hor, willing buyer willing seller. this example quite straightforward.

even simlim can sell one phone at a few thousand dollars.... :jawdrop::jawdrop:

So right now the question to ask is, what would be a fair amt/ percentage for IDs. :argue:

to be honest, i have no idea. Time and effort needed to coordinate the projects, calling people, going down to different sites, making sure everything runs smoothly, creativity used when designing your home ( there is no price tag for art and creativity, like an art piece from van gogh already got people buying at a few millions)...

another factor to consider is also how the ID runs his individual projects. A same project given to two different people will have two different costs tabulated.... Do note that im talking about cost here, not the final project quotation given to the home owner.

Why is this so? because the costing is generally pegged at the amount of face the ID has.

one example - Tom is a ID new in this line. Mary hires tom to do the painting of his home. Tom looks for subcon. Subcon sees that Tom is a new bird in this line, quotes tom at X price. Mary approaches RetiredInteriorDesigner, RetiredInteriorDesigner then looks for subcon who has worked for him for 20 years, and quotes him at (X minus 20 years of friendship and face price ) :jammin::jammin::good::good:

Im not able to speak for others, but lets just say that i rarely have projects with profit margins less than 40%, including the quotations i see flying around in these forums should they be my projects ( pretty sure i can hit at least 40% with that kind of quotations )

I hoped i answered your question. I will probably write about this in MORE DETAIL at my webpage. Do check it out

And keep those questions coming !

:sport-smiley-018::sport-smiley-018::sport-smiley-018::sport-smiley-018::sport-smiley-018::sport-smiley-018::sport-smiley-018::sport-smiley-018:

Edited by RetiredInteriorDesigner
 

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Hi may i know that if lacking the entire 4 room flat (106sq) lay with wooden tiles or homogeneous tiles will the price be almost the same with vivnly floor plank (click on system) as some of them is HERF state waterproof cost almost $6.50 any advise which is most value thank.

 

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Hi may i know that if lacking the entire 4 room flat (106sq) lay with wooden tiles or homogeneous tiles will the price be almost the same with vivnly floor plank (click on system) as some of them is HERF state waterproof cost almost $6.50 any advise which is most value thank.

Lamination come in assorted thickness, and features such as water resistance, water proofing, etc & manufacturing origin. Therefore, the prices will varies.

For a generic comparison, the pricing shouldn't varies much between homogeneous tiles to standard (basic) vinyl flooring.

The only cost adding factor for new BTO, is that it required to do cement screed.

 

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Hi RetiredInteriorDesigner,

Probably another sensitive question... based on your experience, what is the best way we can bargain with the ID/contractors, if let say we like what they propose, but the costing is an issue? How do we know that the ID/contractor has done their best in their quotation without lowering the quality? I understand that they need to make a reasonable margin to survive, but it will be too much if the margin is ridiculous.

Thanks

 

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Hi

I need to install window grille on my service yard. I am looking at hot dipped galvanised wrought iron with simple design according to the BTO guideline.

Do you have any recommended direct factory or contractor? What is the market price psf if my service yard grille is about 8ft x 4ft.

Thanks

 

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Hi may i know that if lacking the entire 4 room flat (106sq) lay with wooden tiles or homogeneous tiles will the price be almost the same with vivnly floor plank (click on system) as some of them is HERF state waterproof cost almost $6.50 any advise which is most value thank.

hi tarzanboy

cement screed is the easiest cheapest and most convenient la and most value for money... :lol::lol::lol:

actually everything got good and bad also, must see which one you like.

even cement screed, also got bad things, like stains and all once kanna literally impossible to remove

put a carpet over one area, 5 years later remove carpet can significantly see the the colour difference.

if you like wooden flooring then go for it lo... since you tarzanboy ma :lol::lol::lol:

joking ah. same thing got good and bad points lo

good points look nice feet feel good

bad points, maintenance lor, later lousy wood 1 year later wood shrink in size sure can see gap

even tiles also got good and bad points

easy maintain

bad points - if kanna poor workman ship then gone case cause the laying process is very important

click on vinyl floor

in my opinion i dont think that one water proof la... you use one bucket full of water splash the floor dont touch it for a few days the water sure seep into the gaps of the individual planks. click on lei where can water proof. but of course la no one mop floor using this method ma.

value is determined by you. you see which one you want then buy which one lo....

one example, if you got old people at home, you obviously wont go for tiles that are slippery even if they are **** cheap right? later you mop floor they walk around..... very dangerous....

hope what i reply answer your questions. :good:

 

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Hi RetiredInteriorDesigner,

Probably another sensitive question... based on your experience, what is the best way we can bargain with the ID/contractors, if let say we like what they propose, but the costing is an issue? How do we know that the ID/contractor has done their best in their quotation without lowering the quality? I understand that they need to make a reasonable margin to survive, but it will be too much if the margin is ridiculous.

Thanks

hi roland. saw your email . reply this first later then reply your email

slowly part by part - what is the best way we can bargain with the ID/contractors

honestly i think the ONLY way is to compare quotations, get REAL referrals from REAL friends who you can BEAT if they mess up your place :sport-smiley-003::sport-smiley-003::rofl::rofl:

The best way, make real friends who are in this industry. Come up with some deal with your ID, you do very nice my home renovation plus cheap i refer 10 more people for you. ( both win win situation) But of course la you must have 10 people to do reno after that. :rofl:

online referrals can say how good and all, but real friends more reliable, and wont earn commission from each referral :ph34r:

i think i will cover this part in my website later

The underhand way - take their idea proposed and go out and find other ID and contractors - this method sure can find cheaper

moving on

How do we know that the ID/contractor has done their best in their quotation without lowering the quality?

to explain the above, im gonna use an example

im sure everyone here got go and eat at those 24 hours prata shops right?

lets use maggie goreng for example. generally the "standard" of the maggie goreng is very dependant on the person cooking it.... somedays you go there and realize that the standard/maggie goreng not as nice as a few days back. why? because the person cooking it is different. Can the person taking your order ensure that the quality of the maggie goreng? of course he cant, because he is not the person cooking it.

Same thing here, ID/Contractor you negotiate with is only the person taking the order, he cannot assure quality/standard of work. of course la maggie goreng can eat and eat, but renovation can only do once. so is actually see heng or sway, see whether the tiler that day is in a good mood or not, or the painter hungry/thirsty or not. Best way buy those packet drinks go up spot check then thank all the workers there for doing a good job ( even if its a bad job, keep their spirits up maybe they put more effort in doing work )

best in their quotation? - lets just say that theres always a best price after a best price.

reasonable margin? What is a reasonable margin when you don't know the margin? besides how can one justify whether this is reasonable or not. ART is PRICELESS.

But of course la some IDs i know earn not a lot but amount of effort put in is alot.

i hope i answered your question.... :good:

Edited by RetiredInteriorDesigner
 

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Hi

I need to install window grille on my service yard. I am looking at hot dipped galvanised wrought iron with simple design according to the BTO guideline.

Do you have any recommended direct factory or contractor? What is the market price psf if my service yard grille is about 8ft x 4ft.

Thanks

Hi deadend

Google is your best friend. Because I dont take commission from companies, not gonna help them advertise HAHA.

also to keep things from a more neutral point la...

market price - google la... direct those contractors. that one is market price.

haha

but on a more serious note

the thing about market price is that they are roughly about the same right now. 10 years ago maybe different because internet not like now, everything one click you can find already.

10 years ago i can probably tell my customers to do this kitchen cabinet per foot run cost 500 dollars cause this one super steady high quality wood etc.

now probably they will compare the **** out of everyone first before making a phone call or visit to their shop

hope i answered your question :good:

 

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Hi

I am also considering changing the clear glass panel only on all the windows to tea colour glass? Is there any recommended contractor and the price psf?

Thanks

hello again.

cheaper method - paste those sticker/film on the window.

got so many to choose like frosted film etc.

but small quantity maybe not that cheap also.

cannot recommend, cause i dont receive commission.

hope i answer your question. :sport-smiley-018:

 

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Oh ya just to add a point, the reason why I dont recommend contractors etc is NOT because i dont earn commission. The fact is that ive got a lot of good subcons that I can vouch for in their work, and i will be more than happy to share their numbers and all. But I want to remain as a neutral party, and i dont want people to misunderstand or assume that there's some secret commission i get for helping them find sales. To be very honest i can simply strike a deal with them telling them, hey for every one person i recommend i get a 10% cut from you, but by doing that i will not be very neutral.

:good:

 

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There is a uploading of goods / debris removal fee of 400 + gst.in my quotation. My renovation only consist of carpentry work, painting etc. No tiles hacking. The id refuse to waive off the sum. I saw e id clearing the rubbish eg boxes from my unit to the basement for 1 time. How do I get him to.waive that sum?

 

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