When considering the investment amount it is common for prices to vary by 30% to 50% or more. This is typical, as there can be a large variation in service provided and the company’s integrity and operational standards. For example, some companies will have additional employees; from phone operator, supervisor, customer service personnel and a project manager to ensure quality control providing superior client service. While this may increase costs, it will also increase the value of their service.
When considering the investment amount it is best to calculate your cost per year by dividing your investment amount by the years of expected service. The result will reveal your cost per years of useful service life. You will want to do this calculation with various types of materials and warranty options to find the best solution for your needs. Sometime, a larger investment will lower your annual cost, saving you money long term. Your roof protect those you love and everything you work for to make your life more comfortable, you should not compromise it to save a few cents a day on your initial investment.
Also, consider that some contractors are far more value focused while others are price driven. Many times these differences are unnoticed, however to the trained eyes, the differences can be very apparent. Following are some things you should look for to identify the difference.
Many contractors think homeowners base their buying decision on price alone. In an ongoing effort to cut expenses and remain competitive, the price-driven contractors frequently take questionable shortcuts. Some contractors even consider evading taxes, a normal practice. Many price-focused contractors have no intentions to harm their clients they simply believe they must be price competitive with the “going rate” and the low-ball bidder to be awarded the job. Typically, they will not charge enough to remain profitable without taking shortcuts. Some are caught and we hear about them in the news, yet large majorities remain in business, at least temporarily. Considering this, in addition with the fact that undercapitalization is the #1 reason why businesses fail, the risk of doing business with the price-driven contractor is simply not worth it.
| Typical Price Driven Contractor | Value Focused Contractor | Solution or Questions To Ask |
| Focus on Quantity | Focus on Quality | Listen to their conversation |
| Employer hires the cheapest, unskilled and untrained laborer as possible | Employer hires, trains and supervise the most experienced and knowledgeable | Ask to see proof of ongoing employee training, certificates or awards |
| Laborers work by the square (piecework) This frequently leads to workers taking questionable shortcut, especially when unsupervised. They avoid doing things that slow down production, causing the roof to fail prematurely. | Laborers work by the hour. Workers are paid a fair wage regardless of how quick the project is completed. This method allows for quality workmanship regardless of the time it takes to get it right. | Ask how the workers are paid, by the square or by the hour. |
| Workers are exempt from Worker Compensation Insurance | Worker are covered by Worker Compensation Insurance | Ask to see a current employee’s Worker Compensation records |
| Using minimum building code as the criteria for quality. | Focus on using the best known method, which often exceeds the minimum specifications | Listen to conversation. Are they recommending things that exceed the building code? Ask why they are recommending those items. |
| Limited or no supervision | Ongoing supervision, and quality control | Ask how crews are supervised and by whom. |
| Rely on Customer’s “Punch List” for accuracy. Problem: If the customer does not see it – oh well! | Contractors use their own knowledge, experience and checklists to ensure accuracy. A value-focused contractor will point out and correct a situation because of their commitment to quality. | Ask how the contractor ensures accuracy. |
| Focus on winning job based on price. | Focus on winning the job by being superior in service, attention to details, support, communication and lack of surprises. | Listen to their conversation, What are they focused on. |
| Lower his or her price if you have a lower bid from another contractor. Note: it is common for some contractors to give a high bid then lower it to make the customer feel like they got a good deal. |
Know their direct, overhead and operating costs and will only lower prices when specifications or terms are changed. | Run! This is not your contractor. Lowering the price because someone else is lower can only mean one of three things, they either; tried to overcharge you, are more focused on getting the job then providing quality or they do not know their true costs, which lead to business failure. |
| Contractors select and use cheapest materials. | Contractor and client work together selecting materials to create the optimal roof system. | Listen to what is recommended and why. Are all materials compatible? Look at the specifications on proposal. If details are vague or the words “or equal” are used, you likely are getting the cheapest materials available at the time. |
| Focus on getting the job done quickly. | Focus on getting the job done right. | Listen to the focus. |
The value-focused contractor on the other hand will go to great lengths to operate their companies with absolute integrity, avoiding any area that could possibility compromise or interrupt the quality of their service, jeopardizing both the client and themselves. Does this mean the value-focused contractor will not look to make a profit? No, it means they will not knowingly use any unethical business practices. However, they also know a key component to staying in business is being profitable. This is required so they will still be in business to provide ongoing service as needed.
You will want to be aware that you may have several price-driven contractors bidding your project. By using this information, you can be assured once you find the value-focused contractor, “you will know”. This contractor is not necessarily the highest bidder. The price will depend a lot on the type of materials and service you select. However, regardless of the price you will want to determine the true value.
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