YellowFever
New member
,
YellowFever said:Anyone know how much IP makes per UNIT of each home sold?
Assume Petaluma res 1 sells for $830,000.
How much of that $830,000 is parts, labor, and net profit? We know the materials (wood) they get is probably wholesale.
Just how much are we GETTING SCREWED? ;D
We know for a fact many of the subcons they hire are definitely undocumented with all them spanish signs on the site.
If I have to guess, I think they spend ~$200,000 in parts and labor and reap in $600,000.
LongIrvine said:gm is 20% but doesn't include carrying cost/lead time and sg&a. . net tends to be around 6-10%.
New Home Co. is the contract builder for IP and makes 6-8% per unit.
Soylent Green Is People said:An "old dog" in the new construction business shared with me his builders margin minimums. The tract he's recently moved to opened at about a net 25% margin with 17% being their floor. This may be due to the lower land cost where he's at today. I was astounded, but considering the source and their connection to their builder, I have to assume he was telling the truth.
If someone has the time, isn't this data searchable through any publicly owned builders financial statements?
My .02c
SGIP