Each month in “The Pro Perspective” podcast, Houzz Pro brings in thought leaders and experts in residential construction and design to share insights to help building, remodeling and design pros. Hosted by Liza Hausman, vice president of industry marketing at Houzz, the series provides both inspiration and time-tested, real-world strategies for success.
In episode 2, “Pricing for Profit,” design-build firm Normandy Remodeling president and owner Andy Wells shares how he prices projects to ensure healthy profit margins, developed over his 27 years at the company handling economic shifts in the industry.
Listen now on Apple Podcasts or Spotify
What’s in the Episode?
Andy Wells worked as a certified public accountant for six years before joining Normandy Remodeling as president in 1997; he now owns the firm and manages the company’s day-to-day operations. Located in Chicago, Normandy is one of the largest residential design-build companies in the country and industry leader, with more than $30 million in annual revenue. It has won 24 Best of Houzz awards in the Design and Service categories.
As Wells has been with Normandy for 27 years, he’s seen the company through boom building times, the burst of the housing bubble in 2007 and subsequent two-year Great Recession, and pandemic-related ups and downs. So he knows a thing or two about pricing strategically to survive and thrive no matter what the economy is doing!
In this episode, Wells focuses on four key areas of pricing: budgeting and planning for profitability, including how to fully account for costs and what’s a good percentage for net income; how to stay competitive even with potentially higher prices; how to price your services to adjust to market conditions without affecting profitability; and how to build the right sales team.
“If somebody is trying to operate a business without a budget, it’s kind of like going on a trip without a map,” Wells says. “You’ve got to put a plan together.” For help with putting your own profitability plan together, tune in to episode 2 of “The Pro Perspective” podcast with Andy Wells.
“The Pro Perspective” podcast is brought to you by Houzz Pro. To learn more about our best-in-class software for winning clients, managing projects and simplifying your workflow, click here.
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