"What Do You Mean The Price Is Made Up"

What Remodelers Can Learn About Pricing: The Truth No One Tells You
Let’s Be Real: All Prices Are Made Up
If you’re struggling to figure out how much to charge, you’re not alone. Most remodelers are. And here’s the shocking truth: all prices are made up.

Yes, you read that right. Every estimate, every bid, every quote is a combination of guesswork, judgment, and strategy. The number you put in front of a client isn’t carved in stone—it’s based on assumptions, choices, and variables that are different for every remodeler and every project.

But here’s the twist: Just because pricing is “made up” doesn’t mean it has to be random.

Why Pricing Feels So Confusing
Let’s break this down:

1. Every Project is Unique
In remodeling, there’s no standard recipe. No two projects are alike because:

Materials vary wildly in quality and cost. Are you using melamine cabinets or custom-built walnut?
Site conditions differ. Installing in a mansion with pristine flooring requires more time and care than a budget flip house.
Client expectations range from “get it done as cheaply as possible” to “white-glove service.”
Every job has its own mix of variables—and so does its price.

2. You’re Competing in a Broken System
Clients often think that if they get multiple bids, they’ll find the “real” price. But what are they really comparing?

Remodeler A might be cutting corners to offer the lowest bid.
Remodeler B includes top-tier materials and meticulous craftsmanship.
Remodeler C is somewhere in between, basing their bid on their overhead, profit margin, and risk tolerance.
The homeowner doesn’t know that they’re comparing apples to oranges—and you’re stuck trying to explain why your “higher” price actually delivers better value.

3. Pricing Isn’t Just About Costs
Here’s the big misconception: Remodelers think they’re pricing based on their costs. In reality, your price is about so much more:

Perceived value: How does the homeowner view your professionalism, expertise, and reliability?
Risk: The more experience and systems you have, the less risk for the client—but that comes at a premium.
Your worth: Are you pricing to reflect the care, detail, and results you bring to the table? Or are you undervaluing yourself to compete with hacks who cut corners?
Why All Prices Are Made Up
Let’s get one thing clear: “Made up” doesn’t mean “random.” It means that pricing is a decision—it’s based on a mix of variables that are unique to each remodeler. Here’s what goes into it:

1. Materials and Delivery
Are you sourcing locally or shipping from across the country? Are you using high-end finishes or budget materials? The same project can cost $10,000 or $50,000 depending on the choices made—and there’s no “right” number.

2. Labor and Expertise
A 20-year veteran with precision tools will price differently than a jack-of-all-trades just starting out. Your skill level, team, and experience play a huge role in the number you set.

3. Overhead and Profit
This is where most remodelers fall short. Are you factoring in:

Insurance, office costs, and salaries?
A fair profit margin that reflects your worth and keeps your business sustainable?
If you’re not, you’re already underpricing yourself—and you’ll feel it in your bank account.

4. Time, Care, and Detail
Rush jobs, complex installs, and high-stakes custom work require more time and precision. If your pricing doesn’t reflect that, you’re setting yourself up for frustration and burnout.

How to Explain This to Clients
Most homeowners don’t understand why pricing varies so much—and it’s your job to educate them. Here are two approaches you can use:

Approach 1: The Curious Consultant
Goal: Guide the client’s understanding without sounding defensive.

Acknowledge the Concern
“That’s a great question. Would it be okay if I shared some insight into how remodeling prices work?”

Ask Questions to Engage Thinking
“When you think about an estimate, what do you imagine it includes?”
“Have you noticed how two similar products—like cabinets—can have very different prices? Why do you think that happens?”
“Would you rather choose the lowest price or the most reliable outcome? What gives you peace of mind?”

Reframe the Pricing Concern
“Think of remodeling like a puzzle. Each piece—materials, time, care, expertise—fits together uniquely. Different remodelers are creating their own versions of that puzzle based on your project.”

Provide Assurance
“My goal isn’t just to give you a number. It’s to give you a result you’ll love and trust. Would you like me to walk you through how my pricing reflects that?”

Approach 2: The Storytelling Strategist
Goal: Use relatable stories and analogies to create emotional buy-in.

Start with a Story
“A homeowner once asked me why two remodelers gave her quotes $20,000 apart. It’s like comparing a high-performance sports car to a basic sedan. Both will get you from point A to B, but the ride, comfort, and experience are completely different.”

Create a Visual Framework
“Think of remodeling like baking a cake. Some remodelers use top-tier ingredients and bake from scratch, while others use a box mix. Both make a cake, but the quality, taste, and healthiness are worlds apart.”

Use an Emotional Close
“I want to deliver a recipe you’ll be proud to serve. My pricing reflects the care and expertise needed to make your vision a reality. How important is that to you?”

Anchor the Value
“You’re not just buying materials and labor—you’re investing in peace of mind. Let me ask: What good is a cheap price if the product never gets finished, doesn’t perform as expected, or ends up costing you double to fix later? Wouldn’t it be better to get it done right the first time?”

The Takeaway: Confidence in Pricing
Yes, all prices are “made up”—but that’s not a bad thing. It means you have control. You can price your services to reflect:

The quality you deliver.
The care you take.
The expertise you bring to the table.
And when you can confidently explain your pricing to clients, you’ll attract the right ones—those who value your work and are willing to pay for it.

Stop underpricing yourself. Start owning your value..