Vinyl Replacement Windows: What do they cost?

here at my consulting company, we often get asked the basic question, "what should an average vinyl replacement window cost?" This is not always such an easy question to answer! But I do realize that the typical answers you find on the internet try to avoid answering with a price.  The fact is, a vinyl replacement window is bought from a manufacturer at a dealer cost of generally between $70 - $250.  This DOES NOT mean that you will be able to buy the window for this amount, because companies need to make a profit.

How a window is priced is not so much what brand or quality, but more so the size and profitability of the company selling it.

Let's take into consideration what a private contract needs to build into the price versus a larger remodeling company with salespeople, and an office.

Private Contractor Pricing

Window cost (lumber yard or retail store)  $120 each

extension jambs/shims                           $8 each

insulation (foam or fiberglass)                  $5 each

Labor                                                    $65 each

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Gas  (give estimate, pick up windows)     $50 per job

Dispose of old windows                          $20 per job

Coil stock for outside trim                       $90 per job

cover overhead                                       $50 per job

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So our private contractor probably needs to charge roughly $200 plus tax just to cover materials and labor, but also needs to price in enough to cover the time to give the estimate, the trips to pick up the windows, do the exterior trim, and cover expenses like contract forms, invoicing paperwork etc...

Also keep in mind that if a contractor breaks a new window, it cannot be returned so smart contractors typically build some "insurance" into the price as well.

Now add sales tax to this job, and also keep in mind that these costs just cover the labor and materials, not a profit (which too many contractors actually do not make enough profits so they go out of business frequently).  A typical profit markup would be at least 20%

If you were to say buy 10 windows from this private contractor, fair pricing would be approximately $2900 or $290 per window installed.

Now lets take a look at a remodeling company

Remodeling Company Pricing

Window Cost  (high quality custom built)    $200

Extension jambs, interior stops                  $9

Labor                                                       $75

Sales commissions                                  $40

insulation/caulk                                        $10

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Cover costs for materials list, and estimate  $100 per job

Cost for lead generation (marketing)          $200 per job

Cover insurance, workers comp, licensing  $100 per job

Overhead (full office staff, rent, phones,etc)  $300 per job

Company vehicles, loans, credit lines       $200

Profit Markup (generally 50% or higher)

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Our remodeling company now has to charge at least $6400 for the same 10 window job.

There are benefits to using a private contractor, namely a lower price.  The benefits of going with a remodeling company can often far outweigh the contractors low price selling point.

Should you choose the right remodeling company to complete your project, you may be offered attractive financing options, year round service, long warranties on both labor and materials, and sometimes a broader resource of industry knowledge.   Of course you must do your due diligence on your local contractors and companies, or use a service to help you out.  If you are going to be in your home a long time and want higher quality, full service, and long warranties then you should consider paying a little more in order to get back a ton.