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And when it comes to home decorating, more people will think that this is a "profit-making" industry. How do decorating companies earn high profits?
Recently, Wu Jingzhong, general manager of Shanghai Huidan Design & Decoration Co., Ltd., revealed to the “Daily Economic News†that the decoration company’s profit margin was between 30% and 40%, based solely on the budget for renovation projects. In a mid-range project, a decoration company generally earns around 20,000 yuan in profits, and more profits earned during the renovation process make it hard for owners to prevent them. Some decoration companies may even use “snaggle in to swindle†to maximize profits. behavior. He introduced to the "Daily Economic News" the most common ways for decoration companies to implement decoration tricks.
One of the Pitfalls: Converting Material Measurement Units
The ingenious conversion of material measurement units is the most common and most subtle way for interior design companies to make profits.
In general, material prices for materials markets are sold in terms of how much money a barrel (a group), how much money, and other units of measurement. The decoration company presented the quotations to the owners. Many of the main materials were quoted in terms of prices per square meter and per meter, such as paints, plates, etc. Therefore, the owners did not know exactly how much of the decoration materials they would use. How much decoration materials.
Compared with the main material, the moisture content of the auxiliary material is even greater. Taking the simplest wall surface treatment as an example, latex paints sold in the market are calculated in terms of barrels. However, decoration companies generally calculate the price of latex paint in units of square meters, and thus in the process of unit conversion. Earn price difference.
The second trap: make a budget "for the future"
Due to the fierce competition in the decoration industry, some decoration companies will obtain the decoration right through a low total price.
Some of the decoration companies often make plans to omit some items when they are doing budgets, plus some discounting methods. The budget thus made is definitely lower than other companies. However, because the decoration materials are not clearly stated with the owner, when using the decoration materials, counterfeit and non-environmental materials may be used. Once the owner requests the use of high-quality, environmentally friendly decoration materials, the decoration company will request a fare increase. In the end, the owner was not worth the candle.
Trap 3: Design Costs Tibetan Trap
A good set of designs takes a lot of energy from the designers and will definitely charge a lot of design fees. However, some of the decorating companies in Shanghai are now taking the approach of “the main designer’s orders and drafters actually operatingâ€.
Wu Jingzhong believes that there are more than 10,000 decoration companies in Shanghai, and the number of excellent designers is relatively small. Some decoration companies will take orders in the name of excellent designers, and thus charge a relatively high design fee for the owners; but actually designing And it is the works designed by the second-rate designers and drafters. The decorating company usually only pays a small design fee to the designer. The decorating company earns a certain price difference in this process.
Trap #4: Using Loss and Tuning
Losses and adjustments are also an effective way for interior companies to “justify†profits.
Regardless of the tile, floor, or ceiling, the decorating company generally sets a certain loss ratio on the quotation. However, it is actually very difficult for the customer to calculate the actual loss, and the excess “depletion†material flows into the decoration company’s pockets.
Reconciliation is also a way for interior companies to make more profits. The decorating construction personnel will steal the brand's decoration materials purchased by the owners, steal them into other general materials, and use fake and shoddy products to achieve the purpose of cutting corners.
Lawyer: It is difficult to prove the difficulty of the contract
Dong Junming, a lawyer of Shanghai Lianye Law Firm, said that because there are many hidden projects in the renovation, such as the laying of pipelines, it is difficult to produce evidence after problems arise, making the road for renovation lawsuits more difficult. At the same time, as part of the renovation contract was not clearly signed, some of the decoration disputes can only be resolved through mediation. Only if the decoration company violates the contract or if the decoration company obviously cut corners and cut materials, etc., the owner can win the case. Therefore, signing a detailed decoration contract with the decoration company is a prerequisite and guarantee that the owner's interest is not infringed.
Where does home improvement profit come from? Decoration industry catty detail full disclosure
The industry insiders describe home decorating as such: Home decoration is the process by which owners and decoration companies fight indefatigably, labor and people are hurtful, and they are bothered.