If your only criterion for hiring a contractor is price,

good luck.

 

Everyone wants a good deal, I shop for bargains myself. If you are looking for an item or service that is the same, price is very important. A box of laundry detergent at Wal-Mart is probably going to be cheaper than at the supermarket. If the two items are the same product, it makes sense to buy the less expensive one. But what if the two aren’t the same, than price can’t be the only criterion.

I recently bid on a job for $900.00, the other contractor bid $550.00.

If we both produce the same results, it would make sense to go with the low bid. If the end result produced by the contractors are different, than you have to ask yourself some additional questions


Is the additional cost worth it?

Are there benefits to hiring the higher priced contractor?

Will I be saving time and energy with a known contractor?

Will the results help me to sell my home?


We need to look at the project as a whole, there is more involved than just the cost. If we take everything into consideration (including the cost) we can better decide who we want to hire for that home improvement project.

In the example earlier, the property management does not want the other contractor to do the work, they have worked together before. They are willing to pay to get the desired results.

If you are interested in getting an estimate for your home improvement project in the Sacramento Region, give us a call.


Tromler Construction

916-765-5366

 

 


 


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Specialists in Dry Rot and Water Damage Repairs

 

 

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Tom Arstingstall
Tromler Construction
General Contractor
Specializing in Dry Rot and Water Damage Repairs

916-765-5366
 Water Damage Repair in Sacramento Dry Rot Repair Contractor in Sacramento

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This post has been included in California Real Estate News Sacramento County, CA Real Estate News Rancho Cordova, CA Real Estate News
Post is included in group: The Ninety-ninth Percentile
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Post is included in group: Best Business Practices
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67 Comments on If your only criterion for hiring a contractor is price, good luck.

20 Most Recent Comments Displayed Show All

JUL
13
648,161 Points 63 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Can it be a criteria - yes certainly.  But it should never be THE criteria.  I also do not buy anything at Walmart....Why?  That box of detergent actually costs a lot more than you think.  If staffers are underpaid, they don't contribute to the system as much. If you spend $100 dollars at a locally owned shop according to the 3/50 project - $68 returns to the community.  For a big-box store that goes down to $43.  For an online store - ZERO, ZIPPO. 

What does that do for you, the consumer...nothing at first...but it impacts your bottom line later in the form of business.  Becuase if people are making money, they spend it.  As people feel wealthier, they will start to hire and that will lead to more work for you.  Can you imagine if everyone did that what a boost it would be for the local economy?

There is no free ride - ANYWHERE - not even in a big-box discount store. 
9:20am • #48
585,556 Points 105 Featured Posts Outside Blog Called Shot Master

My husband is a retired custom home builder who often lost jobs to a lower bidder. Many times the homeowner would call months later to ask if he could come and fix something the contractor had done. Nope - not taking that liability.

Once, believe it or not, the roofing metal was crooked. That's what happens if the roof isn't squared to begin with!

9:32am • #49
1,023,495 Points 15 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Tom,

There are a lot issues here.  I agree that you need to pay for quality.  I have also paid top dollar at times and still cut crap.  I also understand a lot of cost goes into overhead and such things as insurance if you hire a good contractor, which sometimes a good handy man can do the job without that overhead.  On the other hand if you go the cheap route there are risk with no insurance and less accountability.  

Another big issue is most of us do not fully understand the details of what you do, the difference in quality, the other factors so it is hard to judge what is a good and fair price to get quality work.
10:07am • #50
2 Featured Posts Attended Rain Camp

Comparing apples to oranges, that is the question, thanks for the post!
10:55am • #51
421,375 Points 16 Featured Posts Called Shot Master

Hi Tom, its always worth the extra $350 to get a contractor who will do the job Right the first time.  Its good that your client recognized the long term savings of hiring a trusted contractor.
11:41am • #52
550,471 Points 19 Featured Posts Outside Blog Called Shot Master

Hello Tom~ It has been my experience that you get what you pay for.  If you want quality, reliable work, sometimes you have to pay for it!
1:02pm • #53
497,375 Points 13 Featured Posts Outside Blog Called Shot Master

Hi Tom, it is the same for us Realtors.  We are independant contractors and the sellers that go with the low "bid" usually end up getting a discount job.
1:08pm • #54
141,123 Points Attended Rain Camp

Dear Tom,

My preference is to do a job only once and then not look at it again for at least the expected life span of the repair.
2:13pm • #55
269,376 Points 13 Featured Posts Outside Blog Called Shot Master

Great post and congrats on the feature!  You bet, there can be so many variables.  Today, I'm working to use my own roofer, vs. the roofer that the seller wants to use.  I know I can trust my roofer to do the job right, even though his bid might be a bit higher.  Have a great weekend!
5:52pm • #56
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

You are right Lottie, there is a difference.

 

That would make sense to me Kimo.

 

Elite, there may not always be a good reason but it seems to be a reason.
10:04pm • #57
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

I'll have the quality oats Brad.  lol

 

To go a step further, the best doesn't have to be the cheapest Ric.

 

I just picked Wal-Mart as an example Ruthmarie, hope I didn't step on any toes with the post.
10:04pm • #58
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

You seem to have enough experience to see these things Marte, most do not have that knowledge. Without the knowledge, price becomes the most important criterion.

 

You bring up several good points Gene. I try to explain what it is that I will be bidding on with the client personally, face-to-face. I can get a feel their understanding of what is being bid on.
10:05pm • #59
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

If you are bidding on two different things, you will likely have two different prices. Good point Fred.

 

I agree Bob, my job is to make the final product worth it.

 

If the difference is worth it, people will pay for it Donna.
10:20pm • #60
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

That's right Bob, I can sell your home real cheap. I don't know what I'm doing but I'll figure it out as I go.  :)
10:21pm • #61
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

Often times with repairs, the goal is to make the client forget the problem ever existed Dorte.
10:21pm • #62
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

We see this scenario many times Jan. Realtors often have trades people in their pocket to help in the transaction.
10:21pm • #63
JUL
14
297,488 Points 8 Featured Posts

Thanks for the post Tom.

Same goes for home stagers. The cheapest stager in town will not deliver the same quality result or service as a professional who:

  • Knows what they're doing.
  • Values their own time so they don't give it away.
  • Values their abilities and knows that the home seller and agent will make far more return on their services than they will and therefore are not embarassed to charge what they're worth.
8:45am • #64
JUL
15
567,660 Points 140 Featured Posts Outside Blog Called Shot Master

The price question is usually what most people ask when calling for a home inspection. It really boggles my mind how the decision on inspection of such a big investment can be often made on price alone. 
7:38am • #65
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

You bring up some excellent points Debra. How we present ourselves from the start may have an influence on selling our services to someone we may never have met before. Once they see what kind of service we will provide, the choice may shift away from the price alone.
7:48am • #66
777,397 Points 97 Featured Posts Outside Blog Called Shot Master

James, you made me think of something - Are they purchasing a home on price alone?
7:51am • #67

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Tom Arstingstall - An Uncommon Contractor (Tromler Construction): Builder-Contractor in Placerville, CA

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