There is always been a debate about pricing of services such as electric, heating, cooling, plumbing, and so on. People typically refer to the adage “you get what you pay for”! Should that mean you need to pay a lot for a good service? The answer is obviously NO! But super cheap can sometimes mean you’re not getting the proper job or a licensed & insured contractor. The one thing no one ever really explains is why there is such a huge difference in the cost for the same service. Well that all changes today, I’m going to lay it on the line for you! There is different pricing for different business models.

1. The prepackaged business model: Most of these companies have bought in to a business operation system, where a contractor will pay huge sums of money each year for these companies to come in to their business and show them how to run a profitable business. With this model comes some seriously high priced branding, advertising, and over head which obviously get passed on to you the consumer. For the most part, these companies do offer a good service and good products, but they employ or sub-contract the sales people and technician which come at a premium price. For the most part, you get the same product here that you would if you had hired a smaller professional company.
2. The Phone book advertiser model: These guys rely on the consumers who need service right away or have an emergency situation that needs to be remedied immediately! Unfortunately, these companies pay a premium for prime placement in the phone book and these days the call volume is on a steady decline when compared to the call volume of prior years when the phonebook was the primary source for finding a contractor. The continued decline in call volume has forced these types of companies to increase their prices to cover the additional advertising expenses while offsetting the lower call volume. Again you will probably get a good job and service but at a higher cost.
3. The illegitimate contractor model: The guy who could care less about licenses, insurance, good business practices or the safety of their customers. Unfortunately, these guys are everywhere, BE WARNED getting things done right at a fair price is a whole lot better than getting unsafe junk… cheap.
4. The Traditional model: A businessman that is price consciences, customer oriented and professional. There are good contractors out there; these are guys that answer the phone when you call and do what they say they will do in a professional manner with quality products and fair pricing. They are not hard to find but you should always check someone out before you hire. The internet has made it very easy to review a company and find information that will lead you to hire a good contractor. Being cautious when hiring a contractor is simple. Do your due diligence; it’s your home, your safety, and your money, so make good, sound choices when you need your next project done by a pro.