I am not a spendthrift. But I’m not a cheapskate, either. I know people who are not happy in a deal unless they feel like they’ve beaten the other guy down to nothing. That approach to business is costly and inefficient. Most times, it will end up backfiring in a bad way.
Allow me to illustrate with an example.
Let’s say you are remodeling your house and including a room addition. You have asked three contractors for bids. You call in the lowest bidder and begin chiseling him down on his prices. He is desperate for the work so he agrees to renovate your home for what it costs him. He will be able to keep his workers busy and pay them, but he won’t make a dime of profit on the deal.
You feel great because you think you are a shrewd negotiator and won the best deal for yourself.
But what you don’t realize is that during the course of your home renovations, you will be making changes to the work order. Dozens of them. And every time you make a change order, he will screw you. It will be a screwing he believes you deserve. By the time the house is done, he will have his profit and more. And you will have paid a higher price than you should have and made an enemy in the process.
In most cases, the lowest bidder in a contractor bidding war offers his services for such a low rate because he knows his work is slip-shod, performed too quickly without attention to detail, with unskilled labor and done with low quality materials. As a contractor and an investor in San Diego residential real estate for over 30 years, I’ve seen this scenario play out 100s of times among friends, colleagues and through horror stories from customers about their experiences with other contractors. I’ve learned from my business and financial relationships that getting the cheapest deal don’t necessarily mean you’re getting the best deal.
Getting the cheapest deal don’t necessarily mean you’re getting the best deal.
Look for These Three Qualities
Instead, when I do business with someone, as a customer, I am looking for three qualities:
- The right match (someone who brings me something useful that I need).
- The right personality (someone I enjoy dealing with).
- The right deal (a deal that is good and profitable for both of us).
I treat people the way I want to be treated: With fairness, honesty and respect, and always providing the best value possible.
Whether you’re selecting a contractor or any other service, you want good value and a great experience. And you don’t want to overpay for it. But you don’t want to underpay either. At HK Construction & Remodel we do our very best to provide a wonderful experience along with great service at a fair price at all times- with everyone we work with.