The secret language you need to speak to understand high-end clients.
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- Опубліковано 30 чер 2024
- Brent talks about life-cycle costs as a way of communicating true and actual value in a high-end job. Initial costs are not necessarily the whole truth because it doesn't communicate long-term value. A conversation you need to be having.
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Here are a collection of books used in this talk in my Kit.Co library: kit.co/brenthull01/period-rev...
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There’s more cost involved in replacement than just paying the contractor. You also have to spend the time and energy to get quotes, and disrupt the functions of your home/institution during replacement.
True. Thanks.
I'm just a layperson but I get so much from all of your videos. I keep seeing older (20s-40s) homes in my area flipped with what are clearly the cheapest modern finishes -- tiles, roofing, fixtures, vinyl windows, everything grey (what's with the grey?!?!)...in a cute little adobe or bungalow. So sad! All that stuff will have to be ripped out and replaced in 10 years when it looks woefully out of date and starts to deteriorate. Not the kind of high end estates you are talking about in this video, but the same concept applies.
Absolutely it does. It is very sad.
And this isn't even considering inflation costs for product and install on a 25 year life cycle roof. Was trying to convince someone that a well installed and maintained slate or tile roof actually ends up being a far greater value. I will be sending this along to her. Thank you Brent!
I grew up in a house in Vermont with a slate roof that was installed in 1830. That roof has been there for 190 years. It has been repaired several times because slate does break. But we just replaced an individual slate and after a year, they all look the same again.
Thanks!!
Brent, I have always looked at the cost of quality versus 'something that will work'. My 'motto' has always been 'I build it like I'm going to live there myself' - and I never have to apologize. Sure it cost more, but anyone with a little bit of sense and enough funds will completely understand and appreciate that approach!
Agreed! 100%
Opportunity cost is the largest loss with any purchase. NOT having 100k at 5% intrest for 30 years is a loss of 300k. And another consideration is the value of the finished house, a few cheap materials on a premium house can lower the value of all the other parts of the house. Like if you build a premium house on a budget foundation etc.
Thanks.
I would love a Brent Hull home... one day.
Haha, me too. I can't afford me. LOL
@@BrentHullthat’s funny. 😂
This is some of the best conversations that are happening and bring him back battery passion for craft passion for beauty. It’s not just about cheep production. It’s about quality that lasts.
I agree. Thanks.
Once again, the best content. Thanks for sharing
Glad you enjoy it!
Consider the cost of a shingle roof will double every 20 years also.
But so will the wages, so it doesn't matter.
My asphalt shingle roof lasted 25 years because I opted for a heavier shingle. It cost me $4k. I replaced it last year with an asphalt dimension shingle, a $600 upgrade, and it cost $16k using the same roofing contractor and a crew that speaks no English. I’m retired now and my income is less than what it was 25 years ago. I’m not complaining. I am doing well. But if I opted for a metal shingle roof 25 years ago I probably would have paid less than $10k and still have decades of life in that roof today. Math is simple. I just didn’t know I would still be here this long.
@@bigredgreg1 I tired to tell my husband that the last time we redid the roof. He wouldn’t go for it. So now this roof will likely fail just as we are getting so old that we will struggle with decisions and look like easy prey for shady roofers.
@@bigredgreg1 Yes, not knowing you'd be there 25 y later is a problem. But a metal roof would have raised the resale value, so you'd probably get some money back if you sold it. (It'd also fade with time and require refinishing, so count that too.) But several such upgrades would have raised the price so high that you'd have trouble finding a buyer for such house that is priced too high for the neighborhood it's in...
THanks.
This is the kind of information I've been waiting on; thanks!
Glad it was helpful!
It's more expensive to replace a window than install it. So you can expect the life-cycle cost to be higher for a cheap window. Sometimes people suffer with bad windows, failed insulated panes, making repairs, fixing leaks and rot, until they finally replace the windows, replacing all the trim and flashing, sometimes replacing a lot cladding to reinstall the windows. IF a window is really going to last 50-100 years, that IS a big thing.
Great point.
Thank you for this information
My pleasure
Great information!!!
Thanks for watching!
You are 100% correct.
Thank you.
Think you being very gracious with your calculations, after inflation it cost more
It doesn't, because you'll be paid more too.
Thanks.
A tile roof will last longer than a 100 years and no asphalt shingle is going to exceed its lifecycle as long.
Ludawici on clients houses are still good over 100 years and some have upgraded their roofs by pulling the tile and improving the roof and framing then reinstalling the tile.
Agreed! Thanks.
Wisdom!
(Sound track. Sync is off on my iPhone.). With a 20 year life there’s a chance I’ll still be the occupant. The challenge of replacing windows or roof - find a contractor, find a product, survive the construction - becomes a factor once you get past “what can I afford now?”
Thanks for watching.
A very good video and excellent comments from others (now, isn’t that a rarity on other channels?). For my main business, we were buying a lot of machinery and equipment. There are some similarities there for buildings (fabric as well as all the equipment such as AC, heating etc.) as well as some that are not so relevant. For us, the calculations would include:
Purchase cost. How would we finance it? If it were from cash flow, then what would the loss be if there were ways of getting a better financial return than spending it on the machine. If we were financing from bank loans, then add the interest on the capital.
Inflation rates. This would almost certainly push up the cost of replacement equipment as well as all associated labor costs. It might also reduce the overall cost of bank financing in the sense that the £1,000,000 you borrow today will be worth less ( in real terms) in 20 or 40 years time and the interest payments also worth less.
Installation cost. For machines, this could be low but for items which required infrastructure, it could be high. There was also removal and replacement installation costs for equipment that had shorter working lives.
Maintenance cost. How much would each machine (from each potential manufacturer/supplier) cost to maintain? What were the yearly maintenance figures likely to be. We found a good way was to get a quote for an all-inclusive maintenance package. That showed us what the manufacturer’s thought of their own machines (high cost = they think a lot could go wrong).
Effective life. How long would each piece be expected to last? Sometimes, there was good data (as in the case of Brent’s example) but we often had to take an informed estimate for this. We also took into account the potential development of the equipment; in other words, could we expect that, in 10 years time, a much more efficient piece of that equipment would be available? In building terms, think of all the AC, solar, battery items and how much they used to cost and how much more efficient are the items available today. In that regard, paying a fortune for a piece of solar that is guaranteed to last 200 years might not be a good investment as the next generation of solar might well be X times more efficient.
What we generally didn’t have to consider - and yet is a major consideration for Brent and his clientele - is aesthetics. What would look better? What would be in better keeping keeping with the project? What product might the local authority allow to be used or ban from being used.
So, there are definite financial equations to be made; we developed a quite simple Excel spreadsheet so that we could enter the figures for each product being considered and the formulae did the calculations.
For our barn conversion, one factor grew in importance. Knowing that we are getting towards the age whether regular maintenance (eg painting of cladding) will be getting physically impossible for us to do ourselves and therefore we would have to employ contractors, the maintenance costs were particularly vital. This shows that, for each project, the factors to be considered and calculated can have different importance and impact upon the final decision.
Wow, thanks for sharing. Great insight into this issue.
Good points, but plugging that difference in cost amount into an investment should be at least considered. But I think getting out of the throw away mentality is worth any extra cost.
This "mentality" is intentionally trained into us, because it makes us work more, spend more and achieve the goal - generate more profit for those who can afford 100y windows.
Agreed. Thanks.
What about factoring in maintenance cost how much will they spend on upkeep
Definatey should be a factor.
Where do we source the quality of dense wood for longer lasting windows, doors and trim?
We buy from wholesale wood suppliers. I would start there.
we have terra cotta tiles roof in Oz that still look good and keep the rain out. that ate two hundred years old. Asphalt has never been popular in Oz, and so irrelevant
Thanks!
Where can we get your windows
info@brenthull.com ask for Alice.
I love this stuff.
But I do believe it feels like the numbers are presented a bit fuzzy. I’m my region in the Central Valley of CA, if an asphalt roof failed in 20 years that would be a warranty issue. 30 years would be the minimum. Same with production windows. If they fail within 20 years, that is a warranty issue, not the norm. Even vinyl windows have a “lifetime” warranty, meaning if the window or glass has any issues, they replace it at no cost.
Definitely not arguing with the beauty.
Asphalt roof lasts less when there are frequent abrupt temperature changes, like in TX.
Hmm, not what I'm finding. The large production windows we all know have 8-10 year warranty.
So that's how the rich are getting richer. He buys a 100y window for 4K. 25y later sells it to the next guy for 3K. He's spent 1K over 25y. The poor guy uses a 25y window for 2K at the same period. He's spent 2K for using a worse window. But what's the solution? This looks like a very general problem in our society, that causes enormous waste of resources but the rich are incentivized to keep it that way, because they are the ones profiting from 25y windows.
Wealthy people often hand down their homes to their children. So those windows will be keeping the rain out for several generations of their offspring. There’s not that many people getting *rich* off low end windows. There are a LOT of middle class salesmen and installers who are being kept employed by them. This isn’t a class war thing. It’s a life outlook thing. Wealthy people pain for the long haul, several generations. Middle class people plan for their retirement. Poor people don’t plan at all. That’s generally why they are poor, unless they have health issues.
Yes, except instead of “rich guy” it’s “forward thinking guy” and instead of “poor guy” it’s “short term thinking guy”.
This principal extends to nearly every aspect of life, and after the accumulation of decades of those types decisions you end up with “rich guy” and “poor guy”
@@rodeopenguin The poor guy isn't dumb, he just doesn't have the 4K upfront and has to get a mortgage for the 2K too, but no one can live without a window. So he gets into the vicious cycle of buying junk. Saying "99% of population is just dumb" isn't solving the main problem - the resource waste. What should be done to give _everyone_ the 4K window?
@@marcwright4790 Yes, the "long haul" people are only focused on profit and giving _their_ children a jump-start. They are, kindly speaking, useless for solving the main problem - the resource waste by the 99% of population. It looks like the govt has to step in and outlaw junk. It's definitely not a class-war thing, but the rules of our society make people prioritize profit and thus create this wasteful behavior. If everyone stops buying junk, we'll significantly reduce production of everything, spend less, work less, pollute less and generate less profit. I believe, this is what the "fight climate change" people need to focus on.
@@weekendwarrior3420 if the poor guy buys a house that’s over 70 years old, not hard in many parts of the US, he would likely have solid wood “100 year” windows that he could restore for another 100 years. We are doing that in our 100 year old home now. So instead of 4k he puts in his extra time as the investment. Planning is key. Don’t buy a poorly made house in a recent subdivision unless there is nothing else available. In fact if that is all that’s available think about finding another job and moving. Old homes were built to last, just like what Brent is now selling to the wealthy. Most things in them can be restored. It sounds like you have just swallowed a bunch of defeatist Marxist propaganda. Think of solutions instead of being overwhelmed by the problems.
The math is lazy and sounds like any other lazy sales pitch. How many people plan 100 years ahead? How can you prove the lifetime of the job is actually 100? Is it worth spending now for the year 2124? Will there be changes is ownership? New laws? Discount to today's money the future risks. Also, factor in the lost opportunity of investing the saved money over 100 years. There is no correct answer or formula for this. But the right approach is definitely not "cost of the job now divided by 100 years".
I'm explaining how colleges and universities manage costs and budgets. You can poke holes in it but it is a metric. It is also a wise metric instead of cost alone. There are many products that are made better than others. There needs to be a way of accounting for it.