You Can't But Your Competition Can

This blogpost is all about Episode 38 of The HackHour Podcast, and this one’s for every remodeler who’s looked at their books at the end of the year and thought, “Wait… I worked that hard, and I made what?”

If you’ve ever poured your time, talent, and sweat into a year of projects, only to find out at tax time that you lost money—or barely broke even—this episode is going to change everything.

You’re not alone. And more importantly, you’re not the problem.
The problem is how you’re estimating.

Let’s fix that.

The Hard Truth That Most Remodelers Learn Too Late
You’re not the first sharp, capable, hardworking contractor to be stunned when your bottom line shows a loss—despite a calendar full of booked jobs.
What’s worse than not making a profit? Discovering that you were actually paying your clients to remodel their homes.

That might sound dramatic. But it’s happening every day.

And it all comes down to one thing: not understanding how to apply real math to your pricing system. Not profit-by-hope—profit-by-design.

The 3-Phase Estimating System That Guarantees 50% Gross Profit
This system isn’t complicated. It’s not software-based or locked behind a paywall. It’s a simple, three-step estimating framework used by thousands of contractors who are now consistently hitting 50% gross profit and beyond.

Here’s how it works.

Phase 1: Preparation – The Profit Leak No One’s Talking About
Preparation isn’t just staging materials. It’s every hour spent getting ready before a tool touches the jobsite.

Things like:

Driving to the job

Meeting with clients

Running to vendors

Loading tools and materials

Site protection and staging

If you’re not tracking and charging for this, you’re already in the red before Day 1.

A contractor we worked with was spending over $5,000 per week in unbilled prep time. Once he accounted for that in his estimates, his entire business turned around.

Phase 2: The Build – Where Your Accuracy Makes or Breaks You
This is the visible work your client is paying for—framing, painting, tile, flooring. But most contractors rely on gut instinct instead of solid production data.

If you’re not using production rates, you’re guessing. And guessing costs you money.

Start tracking:

How many square feet your crew paints per hour

How long it takes to install a door or a backsplash

How many feet of baseboard a lead can run in a day

Once you have that data, your estimates become predictable, repeatable, and profitable.

Phase 3: The Finish – Your Reputation Is on the Line
This is where most contractors fall short—and where clients form their final impression.

The finish phase should include:

Full job walkthroughs with the client

Testing everything you installed or repaired

Teaching the homeowner how to use new features

Punch list cleanup and final detailing

Did the client upgrade to heavier carpet and thicker padding? Then the doors in that room better swing without dragging.
Installed soft-close hinges? Make sure every one of them works.
Are all doors latching and locking properly? Are the hinges aligned?

Don’t rush this phase to get to the next job. It’s where your reputation—and future referrals—are won or lost.

How to Price for 50% Gross Profit
This is where the math matters most.

Most contractors think adding a 50% markup to their cost gets them a 50% profit. It doesn’t.

A 50% markup only gives you a 33% gross profit. That’s not enough to cover your overhead and leave room for real net profit.

Here’s what you actually need to do:

Total Job Cost (Labor + Materials) × 2 = Your Sales Price

That’s how you ensure a true 50% gross profit margin.

If it costs you $5,000 to produce a job, you need to charge $10,000.

That difference isn’t greed. It’s what covers:

Your office and admin staff

Trucks, tools, software, marketing

Warranties, callbacks, and your own salary

It’s the minimum you need to run a healthy remodeling business.

Download the Free Estimating Template
This isn’t just talk. In this episode, we’re sharing the actual spreadsheet contractors are using in the real world to price their jobs accurately.

This template and many other useful resources are available at theremodeodlelingacademy.com

Plug in your labor, material, and time. The math does the rest. You’ll know exactly what you should be charging to stay profitable.


You’re the Boss. Start Pricing Like It.
You’re not just a tradesperson. You’re running a business.

That means you need pricing systems that reflect:

Your skill

Your risk

Your leadership

The 3-phase estimating system is how you protect your profit and your peace of mind.

No more hoping. No more guessing. Just clear numbers, real margins, and a stronger remodeling business.

If this post helped you, share it with someone who needs to hear it. And be sure to subscribe to The HackHour Podcast for weekly strategies, insights, and mindset shifts for serious remodeling pros.

​Your business deserves to be profitable. Let’s make it happen.