“What is the difference between a retail contractor and a wholesale contractor?” – Brenna of Puyallup, WA

Great question, and an important distinction to make. A retail contractor generally works with retail clients, typically people looking to remodel their personal residence. Retail contractors are bound by the schedules of the residents and retail projects are customarily slow moving. Retail contractors can end up costing anywhere from $100,000 to $150,000 depending on the scope of the project. A wholesale contractor works primarily with investors. Wholesale contractors tend to be more efficient, and often manage a higher volume of projects. Wholesale contractors are generally less expensive than retail contractors and in the example stated above, can complete the same remodel for $75,000 while still making a profit. Wholesale contractors have a general understanding that the end goal is not to build a new house, but to get the property into a condition that will pass the sale inspection and attract a new buyer.

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