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re: I’m a Home Builder, Wanna Take A Survey?
Posted on 5/23/22 at 7:43 pm to Im4datigers
Posted on 5/23/22 at 7:43 pm to Im4datigers
I didn’t mention in the OP that I own a lumber yard as well. Material cost increases have been insane. I’ve cut my margin by 5%-8% depending on the item to keep housing operations hovering at 5% profitability. Even with the reduced margin, the profit on materials at those extreme high adds up to a lot. Target margin at lumber yard across all departments is 22% with lumber only accounting for 12%-16% depending on the year and amount of special order engineered products that hold a little higher margin than dimensional lumber. I’m continuing to build at 5% on my housing side to get the 15% on the lumber sales side. I can do this and survive a bad market because when it’s bad for the builder it’s good for the retailer and vice versa. I’m just trying to avoid the scenario where it’s bad for both sides.
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