Wednesday, December 10, 2014

Apples to Oranges; Raising the Bar & How to Get the Best Bang for your Buck


Enhancing your outdoor living space is often a large investment. It's also an investment that pays large dividends in your quality of life. When working with contractors inside or outside your home the process is very different than, for example, purchasing a vehicle. Unlike comparing prices on the same car, it is rare that two contractors propose exactly the same scope of work. Consider what you are getting for your hard earned money. It's a question of value, not necessarily price. Naturally, the car with few options purchased from a dealer with poor customer service is cheaper when compared to a dealer dedicated to customer service selling a vehicle loaded with options. If you want to compare the value of the vehicles themselves, you have to ask the dealers to price the exact same car. The next step is to compare the businesses.

Design
Home owners who have been through many large scale projects operate more like general contractors. They may pay for  an architect to draw a specific plan and write a detailed scope of work. Contractors then price the execution of the same project. The owner is left with only the companies to compare. This is rarely the case for projects under $40,000 as the cost of the plan and scope is too high. Most homeowners provide a general concept and let each company "run with it". This is great for inspiration and when price isn't much of a factor. What you should consider is working with a budget from the start. Ask each contractor what they can do for $10,000. Personally, I'm very upfront with budgets. I prefer not to waste time for either of us and a set budget provides a framework allowing for more design creativity. More often than not, we have an eye for a Mercedes and budget for a Kia. It's part of the professional contractors job to ground these lofty visions in reality. The typical response to this is, "I have no idea, we are just getting started." While you may not have said your budget out loud, you certainly have one.

The budget discussion works both ways too, I've had $100,000 landscape budgets for a $225,000 home at which they didn't plan on retiring. While I have experience in real estate, I didn't need a license to explain why that may not be the best long term financial planning. Be honest with your contractor and yourselves from the start. If you tell me you have no budget, I'll propose an outrageous number. Most likely you'll say I'm nuts and we will shortly arrive at a budget you didn't think you had. With a seasoned professional, this can and should be accomplished on the phone saving us both time and money. We haven't even met yet and we are now both comfortable with the parameters of the project. I know I can deliver on your realistic vision and we both know that we value each others time. Using the car dealership analogy, how different of an experience would it be if you told each dealer, "I have $35,000 to spend on a Mercedes." It's now up to them to show why they are the best dealer for you and how much value they can provide within your budget.

Products and Materials
The products and materials proposed for a project can represent 35% or more of the total project cost. When comparing products and materials you must also consider the manufacturer of them. Are they local, or at least a US Company, what are the manufacturer warranties? Are they an industry leader in their field? What is the relationship with the contractor, have they purchased from them before?
One contractor may be more or less expensive than the other based on different material types, quality, quantities, and/or measurements. Are there more or fewer plants, what size are the plants, are they locally sourced? Again, working with a budget narrows the differences in measurements and quantities, now you're working with comparing value.

Company
How do the consumer reviews about the contractor look? How about the individual representing the company? If he or she is an employee and not an owner you should feel comfortable asking how they like their job and the company they work for. How a company contributes to our local economy, and society for that matter, also affects their pricing. Greenscapes provides benefits like dental, health insurance and retirement. We have extensive training and safety programs. Our equipment is maintained by our staff as if it was their own. When you instill a sense of ownership in your crew, they will, in turn, treat your clients property as if it was theirs as well. We have incorporated environmental practices and reward our employees for volunteering in the community. Does that make us a little more expensive than the guy with no name on his truck who doesn't even pay taxes? In the short term it might, but what it certainly does is ensure you have a safe, high quality job being installed at your home. It's being completed by well trained and educated employees who are happy at their place of employment. In my experience, happy people do excellent work and excellent work makes for happy clients!

Unilock's Before You Start Guide

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