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One-Size-Fits-All Pricing for Varied Floor Plans: Is it Possible?3/20
A builder-client (a repeat customer and honest guy) is developing a "pocket community" of about 20 small (under 1,000 sq ft) single-family homes. Each homeowner can pick from among 10 different floor plans where the cabinet configuration and LF vary considerably. What he wants from me is one uniform cabinet cost per house that he can apply to any of the floor plans. I can't see any way to use an averaging technique because there's no way to predict which layout a given home buyer will choose. Anyone ever dealt with a similar project? Just to be clear, I'm asking about pricing methodologies, NOT "what would you charge for ...." Thanks!
Can all 20 units have the most amount of cabinet or are there so many of each size unit and floor plan?
Are these sell then build 1 at a time or build all 20 at once?
Are there common cabinets in every plan or do the finishes and materials also change?
Does the price change to the future owner if they buy the unit with more?
I would think a price for the largest with a deduct for each reduction or a price for the smallest with optional adds for each change.
If you were doing all 20 at one time you could just average the price, if you are doing 1 at a time over the next year or so other than engineering there are not a lot of cost savings that you will see.
If the difference is the some cabinets just get wider then maybe keeping drawer stacks a standard size and anything lese you can standardize to help keep costs the same.
Why not price all at the largest kitchen or half at the largest size and the other half at next largest size. At least you have a better chance of not losing all your profit.
If they insist on tying your hands, tell them how much rope to use. Just price the most expensive kitchen and tell them that is the price for all of them. No need for you to loose money because they want you to conform to their marketing plan.
Contractors are typically guilty of trying to make their jobs easier and beating down their subcontractors on price.
This guy is trying to do both at the same time. Tell him to put three different kitchens in all of the houses. You give him three prices.
I bet he wants one price regardless of size, type of material and finish. I guarantee that he will not accept the highest price for all of them. He'll want an average(not that there is one) price.
This whole concept is bs. I would run unless you really need the work.
I am doing something along that line right now. Contractor wants wall cabinet runs using 36" wide boxes (euro) X 33" tall with an unknown laminate. Doesn't cut out very well unless the sheet pattern can be turned. If it can't be turned there will be a lot of waste and based on the number of cabinets in a run there is always one less material cut than needed so an additional sheet is necessary. If I price worst case scenario it will just piss him off and if I don't?... They think I am hard to get along with?...
If your guy wants one price I'd use the higher priced kitchen. You can always mail back the difference after the bill has been paid.
I think you have a guy that wants a simple sales process and doesn't want to offer lots of options to the customers to reduce his management time and doesn't want to work through all the math.
Give him a per unit price that is equal to the largest unit cost if the owners can truly get anything for the same price. The reality is you will get 20 jobs and they process will keep changing as homes are sold.