Reveal the way for home improvement companies to make money.

In recent years, more and more people choose to find decoration companies for home improvement. So, how are these decoration companies profitable? Next, let's unveil the profit veil of the home improvement company.

Contract discount and contract proportion

The profit of a home improvement company depends on the discount and contracting ratio of the contract signed with the owner. Common contracting methods are semi-contracting and full contracting, in which the profit of full contracting is relatively high. The decoration industry has considerable profits, such as a 10W contract, and the profit can often reach 30%.

Material and labor costs

Materials and labor costs of decoration companies are also important factors affecting profits. Therefore, the transparency and standardization of decoration company contracts have a far-reaching impact on its profits and are also the key to its long-term survival.

Half-package hidden profit

Home improvement companies earn profits according to a certain proportion of the total project cost through semi-contracting. Usually this ratio is between 35-40%.

Increase expenses and profits

At the time of settlement, home improvement companies earn profits by increasing some expenses that were not originally available. For example, if the budget is exceeded, they will charge a certain percentage of fees.

♀? Other hidden profits

In addition to the above two ways, some home improvement companies earn extra profits by charging design fees and management fees. Among them, the design fee and management fee are calculated according to the company's charging standard and management rate respectively.