Based on Remodeling Magazine’s Cost vs. Value report, an “average” major kitchen remodel project will cost around $58,000 depending on your area of the US.  I have checked these numbers for my local market and they are reasonable for the project as noted.  Surely, I have projects that run a few thousand dollars and some that are high six figures, but we have to start from some kind of base.

If you now return to a previous post you can determine what your project might cost you based on your own personal situation.  If your room is 40% larger you will likely add about 40% to the figures noted in the study.  Please note however the reverse is not likely to be true.  A project typically has a “base price” that is the same regardless of the size and then the proportions of scale kick in after that base is established.  If I have a $10,000 base for my company to start the first spec of work and a typical 200 square feet (SF) kitchen is $50,000 then the cost per SF is $250 plus the base (i.e. $50,000 for the SF and $10,000 totaling $60,000). This translates to a finished price of about $300/SF.  Thus a 300 SF kitchen will run about $85,000, about $283/SF but a 100 SF area (not a real likely scenario but for illustrative purposes) would be $35,000, about $350/SF.  Keep this in mind as you use any “average” estimating processes.

All these calculations are based on some very basic “average” assumptions.  Cabinetry alone can double or triple from the average if your taste and wishes are sophisticated, unique, or highly experienced.  The same is true for appliances, countertops, flooring, and finishes.  A typical project might have cabinetry and countertops running about 25%, appliances and fixtures about 25%, labor and other finishes about 25% and the final 25% in contractor fee (see previous post).

The ultimate issue is for one to determine what services they realistically need and get prices accordingly.  It is unfair to both the professional and the consumer to force the pricing into a category below what the expectations may be.  You may have experienced this yourself on a previous project.  If this is your first outing, be forewarned.  Most will not accept this on the face but will have to experience the outfall firsthand to put value in this advice.  The truth is we all expect people and companies to do the right thing, regardless of the price.  I can tell you from experience it just does not work that way in any reasonably consistent fashion.  Oh, we may well succeed a time or two, but it is truly a game of “Russian Roulette” with an additional bullet being added to the chamber each time.  I will provide more on this in a future posting.

The very first step in the budget process is to realistically determine which type of consumer you are.  As clarity may elude you initially, you will be much more content as your project progresses if you define which type of consumer you are so that you do not waste time and effort going down roads that dead-end.

In the real world, funds are usually limited and everyone wants to get the most bang for their buck.  Look at yourself based on the descriptions below and see where you truly fit best and adjust your expectations accordingly. There is no right or best category; each has pros and cons.  Knowing the definitions of these categories puts you more in control of the “nosy neighbor syndrome”.  This is when someone you know says, “Well why didn’t you……… ?”  You can respond that you did consider that option and discovered it wasn’t right for you.

Decide which type of consumer you are:

DIY (Do it yourself) – You have the necessary skills to design and complete the project or have the time and inclination to learn all skills involved and you are willing to accept the risks and results.  You will design your project, buy the materials and furnish most if not all the labor.  In total cash outlay, you will probably save about 35-45% of the cost of hiring a professional contractor.  You must be comfortable living amidst an ongoing project under construction a little longer although I have seen many a “pro” take longer than anticipated.  If you organize the project like a pro, you will do fine.  I will provide much more on project organization later, but the first step is the same as a noted in the previous posts at http://wp.me/pSsep-x and http://wp.me/pSsep-1.

BYOC (Be your own contractor) – You are not equipped to design or provide the labor on your project, but you are fully capable and willing to be your own project manager. You will make all other decisions and purchase all products (with or without professional guidance).  You will solicit and manage the various trade laborers needed to complete your project.  You will probably save about 25-35% of the cost of hiring a professional contractor.  You still need to organize the project and manage it like a DIY.

HAP (Hire a professional contractor) – Selecting a professional firm or individual to be responsible for the entire project is a very personal decision; you are going to be “living” together for quite some time.  Research and interview several.  Just because your neighbor or family member chose someone does not mean their choice would be a good fit for you.  All professionals have strengths and weaknesses so find out all you can.  Inquire about the size and scope of their previous projects and check out the references provided.   Be clear about your expectations and assess if they can realistically be met.  Ask open-ended questions and assess the responses. You will pay what I call “regular price” for this professional service and you should expect the project to run accordingly.  The pro will expect you to inform him of all product choices.  Typically, he does not help you shop or help make these decisions.  You will prepare the space for the project by moving out everything you can.  Once the project is completed, you will move everything back in.  You will probably provide the final cleaning unless your contract states otherwise.

INAHICG (I need all the help I can get) - You need assistance all the way ~ including design, where to go to see and select all products, product selection, move out & in labor, installation of all products and final cleaning.  This project requires a great time commitment from the professional so you may spend up to 25% more than the cost of hiring a professional contractor.

In Step 2 of the budgeting process, we will discuss talk about the money …

Remember the notebook paper that you put in your binder mentioned in my last post?   When you cut out an article or photo, glue stick it to a piece of the paper in your binder and make some notes about what you like and don’t like.  Date the note.  If you get in the habit of gluing and dating, all of this information will prove to be very valuable as the process continues.

Create categories and tab the pages accordingly.  You can add new tabs and even create “sub tabs” if needed.  You’ll know when you have too much information under one tab.  When that happens, create sub-tabs.   For instance, under the “Appliances” tab, you may find that you want to add a sub-tab for each appliance.    I had a client who was a professional chef.   I would have bet the farm that he wanted a really high-end cooking appliance.   WRONG!   He didn’t care a flip about the cooking unit; he could cook on anything!  His passion was reserved for the refrigerator!!   His binder held 20 pages of data on  refrigeration products he wanted to talk with me about!

As you gather your kitchen project information, put all of it into the binder and MAKE NOTES as soon as possible.  If  you talked with someone, put her name and contact info with the notes.  As you obtain pricing  information, make this note on a separate page so you are not exposing prices to competitors or others as you make new notes.

Remember you can have too little information but you can never have too much! You can sort through everything in your binder after you have gathered all your information.

Carry the binder with you as you travel about.  You can even leave it in your car.  You may pass a showroom and decide on the spur of the moment to stop in and gather information.  You can find a lot of information when you are not specifically looking for it!

On behalf of all of us in the kitchen and bath industry, as you visit showrooms, please let the showroom consultant know the purpose of your visit.  If you are just looking for ideas and are not a potential buyer, please be upfront and tell the consultant that.  He or she will appreciate your candor.  The showroom consultant probably works on a commission basis.  No one wants to waste time or energy, including you!

In my next post, I’ll explain the budget process  so that you can determine what type of customer you are or will need to be in order to successfully complete your kitchen project!

Let me know what you think of this process so far!

Buy a 3 ring binder notebook and outfit it with a number of  tabs and some sheets of lined notebook paper.  You can always add more tabs/paper later as needed.  Include tabs for each product you intend to research for your kitchen or bath (examples:  cabinetry, counter tops, appliances, sinks, back splash, flooring, paint colors, etc.)

Be sure to include a tab for Notes of Conversations.  Frankly, I consider this the most important tab.    Make notes of EVERY phone call and in-person conversation you have with sales people, designers, deliverers  and inspectors.   You may be amazed at how much contradictory information you will gather along the way and not remember who told you what!

This one tab could be a financial and sanity saver as you proceed.  In my 35-plus year career,  I have been asked to mediate a number of homeowner/contractor disputes that could have easily been avoided if each had taken and preserved notes on a routine basis.

Next post:  Organizing the notebook