A consulting and design client and member recently asked me

“Why do professional’s prices vary so much? What is the right choice when making a hire?”

If you’ve ever found yourself asking the same question, you’re not alone.

I recently saw this on Twitter that urged me to write this blog post.

We’re told to get 3 quotes. 3 quotes for General Contractors. 3 for painters. 3 for plumbers…

It’s the most common recommendation across the board. But do we know why?

You’re probably thinking this:

1. Comparison of prices: By obtaining multiple quotes, you can compare the prices and services offered by each professional. This allows you to find the best value for your money. But does it?

2. Avoiding scams: By getting multiple quotes, you can also avoid scams and dishonest professionals who may overcharge you for their services. Once again, does it?

3. Quality assurance: When you get multiple quotes, you can also compare the quality of services and materials used by each professional. But can you?

4. And lastly, you might be thinking of negotiation power: When you have multiple quotes, you can use this as leverage to negotiate better prices or additional services with the professional of your choice. Once again, can you?

This is all a false sense of belief. 

Does it really help you avoid scams? No. Does it assure quality? Absolutely not. Does it give you negotiation power in the price? It shouldn’t. And the only true comparison homeowners make is the price. 

So how do you choose your hires based on 3 quotes?

Truth is — you don't.

You don't need 3 quotes. What you need is to vet your professionals.

When you search your professionals based on a google search of your area and then compare quotes, what are you actually doing? You can compare the price, but without knowing the professional, how do you know the level of quality or the price is “honest”? What does it include, and more importantly exclude? Are you comparing apples and apples or apples and oranges?

“But how do you know if your pro’s price is honest?”

Honest is a poor choice of words in my mind. What we’re wanting to know is if we’re being taken advantage of or grossly overcharging us (scammed). 

Firstly, if you’re having to keep your trades ‘honest’ or feel like you don’t trust them, then you don’t know them at all. If you do know them well enough, then you shouldn’t hire them.

How can you truely compare a bad contractor with a good contractor if you don’t know what makes a good/bad contractor? Their quote isn’t going to tell you that.

Get to know who you’re going to be working with. Understand how they work, speak with past clients, visit job sites, speak with the other professionals they work with, etc. This does take time but it’s worth it.

“But what if they’re a lot more money than another trade? What about negotiating?”

Understandably, you might get to know a professional only to find out that you’re unable to afford their services. Now is not the time to negotiate their price nor is it to see if there’s anything they can cut from their quote. 

As business owners, we’re allowed to price according to what our clients value our work or product. 

You can purchase a pack of 100 paperclips from Staples for $4.99 or a 18k single paperclip bookmark from Tiffany’s for $1,500. 

Of course this is an exaggeration but neither is wrong. It’s just what you think the value of each product / service is to you.

As for negotiating, personally I wouldn’t do it. 

What’s wrong is when a professional negotiates that tells you 2 things: either their price was wrong to begin with (there’s that honest piece) or they need the job and are willing to reduce their hourly wage to get the job.

This isn’t a negotiation on a product that has already been made, it’s on a service that hasn’t been completed yet. It’s human nature to devalue the service based on the devaluation of said service. 

aka. the professional might not be as professional as they would normally be. Would you work just as good on a job if you took a decrease in pay on the same service? Probably not.

Lastly, asking if they can cut some services has always perplexed me. When I design a home, I quote for the project scope and what’s involved. Bare minimum. There’s nothing that’s added just for fun. I can add more, like physical models, full-service renderings, etc. but 

If you want something cut to lower the price, cut something from your project.
 

If you’re interested in understanding how to find your professionals the right way, join us inside Homeowner HQ’s Home Hub and our new Home Pro Hiring Course coming this Spring. 

We can't wait to help you get the professionals you deserve working on your project.

— C.