What is the main source of profit for home improvement companies?

Protective decoration network through some of the information collected to give you an introduction to the decoration company is how to make money, its profit model and profit points and how it looks like.

The most common half-package model to calculate:

Generally speaking: half-package in the hidden profit = half-package price x (35-40)%

Other renovation company secretly earn profit (or called gross profit): secretly earn gross profit = design fee + management fee + half-package cost hidden profit + increase the cost of the profit generated in the design fee: according to the company to determine the charges standard implementation; management fee: 5%.

And many people think not quite the same is that the building materials on the profit (material rebates) for many decoration company is no longer the main income, because in the material price is more and more transparent today very few material traders are willing to be able to give a very high discount above, in other words, this model is not competitive for the decoration company.

The profitability of the decoration company should be: in the construction process of resources, personnel, materials and other factors that may produce risks such as rework rework caused by the waste of materials, the ability to control the delay. The stronger the control ability, the higher the gross profit that can be generated.

For example, the amount of plate for a cabinet: conventional 6.8 + loss of 0.3 = 7.1 (sheets). Need to buy the number of sheets for 8, we can do to control the amount of 7 sheets. The difference in price is: 1 sheet. And this one is the decoration company's profit point. In fact, so it seems, in a sense, is still mainly from building materials, but has been different from the past by eating the way to get rebates.

In summary, the source of profit mainly comes from the comprehensive control of all aspects of the cost savings. The more formal home improvement company, the more there is no major profit point, all profits are scattered in various aspects.