Interior and Exterior House Painting Services in Houston, Texas
Since 1986

 

 

Pricing Differences

 

While reviewing a proposal with a customer, we are often told that our scope of work includes work not included by other contractors. And, because our price is often considerably higher than the other estimates, the customer wonders if perhaps we inflating our price by including unnecessary work. This is certainly an understandable concern, and it raises numerous issues that homeowners should consider.

There are many possible reasons why contractors do not include certain items in their proposals. However, I believe that there are only two primary reasons: price and ignorance.

Many, if not most, contractors believe that price drives the market-that homeowners make their purchasing decisions purely (or almost so) based on price. If this were true, we'd all be driving Yugos (or something similar). Clearly this is not the case.

If a contractor believes that price is all that matters, he will endeavor to keep his price as low as possible. He may omit items that are marginally necessary, use less expensive products, or simply cut corners. He may give the customer limited options, believing that the more expensive alternatives will not be considered. No matter his specific tactic, he tries to have the lowest price, because in his mind that is how the job will be won.

Such a belief does a disservice to the contractor and the customer. The contractor suffers because he is wrong-price is seldom the primary consideration. The customer suffers because he does not have the opportunity to learn about all of his options, and select the one that is best for him.

Because many contractors do not belong to their trade association, attend conferences or seminars, or engage in continuing education, they often remain unaware of new products, technologies, or practices. As a result they cannot offer their customers the benefit of these new opportunities.

One example is ventilation. Few painters are aware of the impact of improper ventilation on painted surfaces. Consequently, when faced with an improperly ventilated home, they cannot offer a solution. They simply prepare and paint the house, and the homeowner is faced with the same problems (mildew and peeling paint) several years later. If the homeowner receives 4 or 5 estimates, and only one contractor addresses the ventilation issue, that contractor may easily be greeted with skepticism.

(This does not mean that every contractor that proposes a more extensive scope of work is legitimate. There are certainly contractors who propose unnecessary work, either intentionally or unintentionally.)

Homeowners purchase home improvement projects infrequently. They call professional contractors both for their skills and their expertise. When the experts differ and offer conflicting advice, the homeowner can be very confused. The homeowner must determine which expert to believe.

I believe that a professional contractor is much like a doctor-we must diagnose a problem and then recommend a solution. As in medicine, technology and new discoveries are continually changing the construction industry. As professionals we have a responsibility to stay abreast of those changes so that we can properly diagnose and solve problems. Unfortunately many contractors do not share this view.

 
 
THE POWER OF PRINCIPLES

A principle is a guide to action (mental or physical), and therefore, requires an identification of the goal sought, i.e., the purpose of the action. This does not mean that principles are arbitrary (or that all principles are equally valid), but defined within a specific context.

In business, certain principles apply regardless of the industry. For example, a business transaction is a voluntary exchange in which both parties benefit (or perceive they will benefit). Within each industry, other, more specific principles apply. And, each business will have specific principles unique to its own goals.

These three sets of principles are hierarchical- a particular business’s principles must be derived from the industry-specific principles, which in turn must be derived from general business principles. If this hierarchy is ignored, the result is a clash between the goals of the business and the requirements for success.

Long-term success requires planning- setting distant goals and identifying the means for achieving them.

The outcome of an action may take months, years, or decades to materialize. Yet, success requires that we project these long-term consequences. Principles provide us with the means of projecting the outcome of our actions. Principles tell us which actions are harmful, and which are beneficial, not simply in the immediate moment, but in the long-term.

A business may believe minor deviations from the principles of business are acceptable, that no long-term harm will result. It may believe that strict adherence to a set of principles is impractical idealism. To place expediency above principles is to reject the meaning and function of principles; indeed, expediency is a principle dedicated to the immediate moment.

A business which rejects principles is akin to a rudderless boat upon the ocean. It is subject to the prevailing winds and currents, it cannot steer its own course, it can set no goals. The well-being of its occupants is left to chance. That is the power of principles.

 

 

Philpaint provides professional interior and exterior painting services throughout Southwest Houston,

including the following communities: Bellaire, West University, Rice Village, Southampton, Montrose, The Heights,

Braeswood, Meyerland, Tanglewood, River Oaks, Sharpstown, and surrounding areas.

 

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