Why Are Some Bids More Than Others?

Great question and there are a few real explanations and may not be what you think. I like to use the gas price analogy.

Why Are Some Bids More Than Others?

  1. There are normally 3 grades of gas each having a higher value proposition based octane. This simply means you’re getting a better quality of fuel for your vehicle as most higher end cars actually require premium gas for optimal performance. I am personally a mid grade guy 😉
  2. The second issue is why is gas cheaper at one gas station than the other? Pretty simple answer here usually, real estate, quality of staff and provisions. Simply put, they have a higher overhead due to quality of service, location and experience.
  3. Third factor is volume of average spend from clients. If the average client has a higher spend inside the store, the store makes higher profit per client so they can be more cost effective on gas which is a low-no profit part of their business. The money is made inside the store on all of the goodies, look at the new BIGGER, BETTER and massive stations such as Buckees, Quick Trip, Race Track etc.

When referring to contractors we often think that the contractor is simply trying to make more money, this can be true but often not. It is usually predicated more on their efficiency and dependability as a business. Liability, responsibility, craftsmanship, quality of labor, build specs and customer satisfaction.

Now more than ever the market is flooded with patio contractors who underbid, underbuild, underdeliver and are simply low bidding jobs to stay afloat, pay their guys and keep operating often at their loss and yours. As a matter of fact, 80% of people who deal with backyard remodeling contractors have a bad experience.

The question remains, are you comparing apples to apples in your bids? Are you doing your homework on the company and trusting your gut with the contractor quoting you? Or, simply allowing your money meter to supercede what you know is best?

Of course no one wants to over pay for anything, but we also don’t want buyers remorse or feeling like we were bamboozled in some way. There’s no concern with liability until something happens and you’re dealing with a disaster or being sued by a company, worker or neighbor because something went wrong!

In the scope of most projects you have to (ROI) “Return on Investment” the expense over 5-20 years and be mindful of the fact that you will be enjoying your project or complaining about it, wishing you would have done it better all of those years.

Know what you want, what you can afford and make sure you choose a contractor wisely! Give us a call today for more information on selecting the right contractor.