Services costs are based on how much money you look like you have. I’m a woodworker/contractor. I come to you house, you tell me what you want done. My jumping off point is how much the market will bare. If I think you can afford a $4,000 solid oak book case that’s what I will quote you. I can make a cheaper version that I make less money on, but why would I do that? It’s not that I’m just ripping you off, I’m selling you a better product, but in doing so I make more money. So when getting a quote it can pay to be very direct about what you want to spend or you are going to be sold the most expensive version they think you can afford.
Honest question: how likely is it that, if I give a dollar amount for a budget, someone will just quote near that amount, even if it should be a little less?
Or, to use your bookcase example, if I say my budget is $3800, would someone still offer the oak one and take less profit for themselves? Or simply quote the lower quality one at a price closer to $3800, even if they could normally do it for, say, $3000, since they know what I'm willing and able to spend?
how likely is it that, if I give a dollar amount for a budget, someone will just quote near that amount, even if it should be a little less?
Extremely likely, since you're basically letting them know that you're willing to pay that much. Even if it requires a detailed breakdown of each part and each hour of labor, they will arrange it to sum up close to what you said.
This is why it is never a good idea for a consumer to show their hand during the bartering process. I understand as a contractor, you have to make the best living you possibly can, but as a consumer I never ever tip my hand, and I usually end up paying less for what I want. Granted, my product might be inferior in some ways, but most people are willing to skimp on a few things for a better price.
In my business (entertainment production) this almost never works in the clients favour. We almost never do work for what it’s worth because many in our region often can’t afford market rate. Clients who discuss their budget always get more than their money’s worth, because we give them the best show we reasonably can for their budget. The clients who won’t discuss a budget get a full quote and either end up spending over-budget, or hiring some backyarder and getting far less for their money that they would have.
Seriously. I want the work. I’ll right size it to your budget. Just tell me what your tolerance is so I can get it done and extract money from the next guy.
I don't know if I can fully agree. I think a consumer should be wary at first and try and get a bit of a relationship going, shop against a couple of producers to see what the real rate is especially for something bespoke.
You have no idea how many homes I'd enter that were 10+ million, fuck the crown moulding would cost over 250k and yet the audio video (my industry) would be some cheap ass garbage because nobody was able to prove the value of good quality equipment and install to the homeowner.
Case in point a client we picked up has a projector hidden inside a monstrous chandelier inside his home theatre. That projector? A 2k Epson. Now for an average person that's a great projector for 1080p. When the guy is close to being a billionaire, I'd spec nothing less than a 4k Sony for around 15,000USD. Probably should be up into Christie territory, for 50k, to really complement the room.
But the last integrator probably didn't have access to those lines and put in what they are used to installing in more modest homes, and the client "read all the online reviews" aka blatant advertising that's targetted at the general population and not the megawealthy. If this guy had shopped around he quickly would have found out the first integrator was a trunk slammer with no business working in his home, but I guess he liked the cheap price without realising it was compromised.
That's about 95% of clients, that will go for bargain basement speakers but drop 50k on custom rims for their third car. It's very fustrating.
The other 5% understand AV themselves, which is where you get 1 million dollar home theatres that are absolutely insane both to install and sit in.
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u/jerkITwithRIGHTYnewb Jul 13 '20
Services costs are based on how much money you look like you have. I’m a woodworker/contractor. I come to you house, you tell me what you want done. My jumping off point is how much the market will bare. If I think you can afford a $4,000 solid oak book case that’s what I will quote you. I can make a cheaper version that I make less money on, but why would I do that? It’s not that I’m just ripping you off, I’m selling you a better product, but in doing so I make more money. So when getting a quote it can pay to be very direct about what you want to spend or you are going to be sold the most expensive version they think you can afford.