Sometimes Choosing the Highest Bid is a Wise Choice


contractor pricingIn a blog post last month – Cost of Window Replacement – we explained what you could expect to receive if you didn’t spend much money on a window installation project. Probably not surprisingly, the cheaper a project cost the cheaper the materials and labor.

Today at HomeProHub, we’re flipping over the coin to take a look at the other side. We’re going to show you exactly why some companies continually submit the lowest and highest bids, why there are certain situations where the highest bid might be the best option, and what you can expect for the extra money you’ve laid down.

Let’s say you have received five bids on your window project. Sometimes the highest bid you’ve received is really just that: the highest bid. By no means is it the best bid. It just happens to be the highest of the lot you’ve received. Let’s look at making sense of a five-bid scenario that – while not always 100% the case – is usually a reliable way to help you choose the best contractor.

The Lowest of the Lows

First, you have a bid that is low. We mean really low. In fact, it’s less than half of the highest bid. Sometimes the lowest bid is so incredibly low that the contractor is doing the project at a loss. Why would he do that? Well, he needs to keep his workforce busy. If there’s a huge lull in projects, those skilled workers could jump ship to another company. In addition, if he’s doing the project at a loss then you can be pretty darn sure he’s cutting corners and trying to complete the project in world record time.

What’s key to note here is that a drastically lower bid could be a big warning sign that this contractor isn’t running his business very well. We’d recommend you throw this bid out. It’s just too “scary-low” as we like to say.

The Highest of the Highs

Now you have three bids that are somewhere in the middle. But let’s take a closer look at that highest bid. Almost every time this bid will come exclusively from one or two home improvement companies in each market. No matter what market you live in, you can routinely expect the highest bids to come from these same folks.

Here’s why you would consider this bid: the company is charging you more because what you’re getting is significantly better than the others. These high-charging companies aren’t trying to bang out your window project in a day or so just to make a quick buck. They focus on repeat customers and word-of-mouth. Therefore, they give their project lots of TLC and dedication to perfection. The companies tend to hire better-quality installers. They use better nails, caulking, higher-grade wood, and additional materials. As the cliché goes, “You get what you pay for.” Well, in this instance you are paying for – and getting – much better quality all the way around.

No Such Thing as a Sure Thing

No matter whom you hire, whether it’s corner-cutting Chuck ‘N the Truck or the best window installation company in the entire state, things can go wrong. Here’s where going with the highest bid can be a lifesaver when things go awry: the resources a big company has are nearly endless. If something catastrophic happens during the project, they have the ability to make amends. Not so with the cheapest bid. If the project goes all sorts of wrong, you will be out of luck. The cheap contractor simply has no way of helping you in this situation.

In the end, choosing a contractor at any price range can be a tricky endeavor. Talk with HomeProHub today to examine both sides of that coin to see which one is right for you.

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