Neighborhood Pricing

Keith_8

That the upscale neighborhood demands a higher level of service?

If that is the case why would the contractor not charge more for their services?

All things being equal, In my opinion it's short sided to have 2 pricing structures, to confusing and self defeating.

We don't do any residential work but at one time we did. There were times when at my discretion the low income homeowner was cut some slack based on the fact that they HAD NO MONEY.

Keith

gasfolk

Any advice for homeowners confronted by "neighborhood pricing"--qouted prices triple because of the "upscale" neighborhood?

Many neighbors simply avoid maintenance, leaving it for the next owner. Some of us with folks in the trades pick their brains and do as much as we can ourselves, but I'm getting tired and looking for an alternative. Thanks, gf

gasfolk

Any advice for

homeowners routinely facing "neighborhood pricing"--where qouted prices triple because of the "upscale" neighborhood?

Some, with folks in the trades, do as much as we can ourselves. But, I'm getting tired and looking for an alternative. Thanks, gf

Steve Ebels_3

Keep looking

Somewhere, even if it's a little outside your local area, there is a businessman who runs his business as just that. A business. He calculates his prices based on overhead, materials and a net profit. Not what he thinks the traffic will bear. I know they are few and far between but they are out there. He may have to add some travel time if you're a long distance away but knowing things are done and done correctly will be worth it. I truly do sympathize with you. It can be a royal pain in the posterior to find someone you can trust on all counts. Keep looking and try the "find a professional" link at the upper left.

John Ruhnke

It doesn.t happen where I live...........

Trades people want to work in the better neighborhoods. Competition is fierce. Rich people are savey enough to shop around. Rich people don't get bad prices. Rich people get the best prices. Though I have found that if someone that is rich wants the best, they will be willing to pay more for it and hire the better contractor over the cheapest contractor. I have clients from the poorer neighborhoods that pay me very well because they know that it is hard to find a good contractor to go into there neighborhood.

The problem is not that trades people charge too much. The oposite is true. Trades people don't charge nearly enough for there services. The average business earns a 9% profit while the average construction business earns 2% profit. In my area good heating technician earns around $50,000 and a school teacher earns around $70,000. That is not right. A heating technician is very important to your well being and comfort. It takes many many years of field training to get really good. The job is more complicated and more important then many college jobs. Trades people need to raise there prices. So if you see prices going up in your neighborhood cheer!!

JR

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

hr

If the contractor

happens to, or wishes to, live in the same "upscale" neighborhood, or own a shop in this area, wouldn't it make sense his rates would be higher?

If you contact 4 or 5 locals and the prices are within dollars of one another, guess what...

You might find a "station wagon" contractor for a lot less. You may get what you pay for at the low end. Ask for licenses, proof of insurances, and references at the least

hot rod

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

gasfolk

Glad to hear about

JR's neighborhood, but folks tell us we are paying a premium. We may live in an "upscale" neighborhood, but that doesn't mean we are rich--we work for a living. Both of our dads were in the trades (in other states), so we're not looking for cheap seats. We have found a couple of tradespeople who work with us, and we don't so much get quotes from them, just a broad estimate so we know what ballpark we'll be in (Cleveland or New York?).

We did show a group of quotations to our friendly union tradesman (he too lives in a nearby, "upscale" neighborhood), and he nearly fell off his chair, describing the prices markedly inflated. If we could afford it that might be the solution: to only hire our local union shops. We'll keep looking. Has no one else heard of this practice?

gasfolk

Glad to hear about

JR's neighborhood, but folks tell us we are paying a premium. We may live in an "upscale" neighborhood, but that doesn't mean we are rich--we work for a living. Both of our dads were in the trades (in other states), so we're not looking for cheap seats. We have found a couple of tradespeople who work with us, and we don't so much get quotes from them, just a broad estimate so we know what ballpark we'll be in (Cleveland or New York?).

We did show a group of quotations to our friendly union tradesman (he too lives in a nearby, "upscale" neighborhood), and he nearly fell off his chair, describing the prices markedly inflated. If we could afford it, that might be the solution: to only hire our local union shops. We'll keep looking. Has no one else heard of this practice?

hr

I suspect

the contractors giving those "assumed" markedly inflated bids are not rich either

Does you union friend own and operate his own business?

hot rod

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

gasfolk

hot rod, you're right...

it IS a stupid question. What other answer could anyone expect? Charge what the market will bear.

Well, at least we can still afford Motrin and Home Depot.

Cheers.

gasfolk

Yes, he does,

Bill Jirik,

Bad neighborhoods pay more too

Well it just isn't upscale areas that seem to pay more, try getting a quote in the bad areas of any large city, NO one likes working there, consider the extra costs associated with thefts, robbery, while on the job, the shortened working day as one wants to get out of those neighborhoods before the thugs wake up and get active, middle class areas are the place to be

Big Ed

You Bet The up Scale homes pay more.....

The bigger the home , the more the equitment, time and labor needed.

Easyer to hang radiation on sheet rock then marble.

Need to be more careful with high end construction.

More of a risk working in a high end home.

High end equitment takes longer to install with more care.

Of cause the "buyer beware" applies ,I just want to post some reasons for the staight shooter....

Phil_6

Don't forget..

"Please don't park your truck in my $150,000 driveway"... so now we have to drag our tools and materials an extra 250 feet from the street or service driveway to the door. Gotta get more money working there, right?

Of course in the REAL nice towns you can't park in the street 24 hours a day anyway, so add a little for the tickets..... ;-)

Big Ed

Tickets , Time Frames and Inspectors

Tickets right ! Places like Manhattan N.Y. where there is no parking . Parking tickets , trips circling the block and long walks to the truck are a way of life.

Then the set time frames of working ......say along Sutton Place.. Can't start until 9:30 and have to be gone by 3pm ... A lot of $$ is wasted having crews sitting around eating egg sandwiches. Plus the increase on the waist line slows them down...



Inspectors seem to be alot tougher in the better Hamlets... Stricter guide lines and longer tests..

jerry scharf_3

some thoughts

gf,

It certainly does happen. I can see some of the tradespeople's point of view. In expensive areas, the following things are likely: slow payment; more expensive materials both to use and work around; greater expectations and limitations. Also, there are enough of the people who are not kind to the people who work for them that it becomes a neighborhood stigma.

Even if none of these apply to you, tradespeople figure out that they can get lose money on some jobs and need to make it on others.

So what I see that can you do about it.

1) stop shopping at home depot. Shop the local stores and get to know the counter people. These people can sometimes come up with the best names. Be pleasant and shop at quieter times of day when they are less likely to blow you off. Don't let a rude counter person put you off, there are some in every barrel.

2) start collecting names from neighbors. If you like the way a painter in the area does a job, go talk to the homeowner, get the low down and file the name away. Even if they are too busy to do it when the time comes, they may be able to come up with other good names.

3) Before you "get the quote" talk to the contractor. Ask him what it's like to work in your neighborhood. Here what makes life tough for him. Tell them about your family background in the trades and that you're working yourselves up. Offer them coffee when they come in, both for the quote and when they work. Explain that you want and appreciate quality work. Tell them that you will happily pass their name around when a good job is done. This may dispose them to trim the margin.

In essense, sell them on why you and your job is special. Once that's done, some of them will look at your job differently than the "other jobs" in the neighborhood.

A final warning in case you don't already know it. Don't take references at face value. Trade referrals can have all sorts of behind the scenes stuff attached. Homeowner referrals can be as bad or worse. If they don't understand what is good work, they may speak highly of someone who should be mopping floors or bad mouth a great contractor. Always get the feel of the person referring and add that to the reference.

best of luck,
jerry

gasfolk

Thanks

to everyone for your insights and advice. It's a tough topic with many valid sides.

An example of our experience:

We took a neighbor's advice and hired an HVAC firm. Gave them the job on their single bid--no competition. Paid the whole thing up front with extra for a tip. Made them coffee, bought them lunch, kept the fridge stocked with Coke, helped them clean up. One of their men cut holes in all the wrong places, so they cut new holes and promised to patch the others. A month after they left, we discovered that the installed equipment isn't the contracted brand, efficiency, or warranty--they changed the labels on the equipment. We had to have the equipment removed (neighbors complained of the noise), and that's why we are looking at geothermal (excellent geo contractor, plumber, and engineer).

Mostly, we treat tradespeople like kings, but getting burned shakes the faith, and the more we read on the Wall, the bigger the discrepancy between what we have gotten and what appears to be available. We have lots of stories like the above, and we apologize for telling even this one example, but we wanted to say that not every homeowner is rich or out to get something for nothing.

Thanks again for the Wall and your kind comments.

gf