Why Can't Home Repair Firms Quote Standard Prices

Question: It seems that every time I need an Electrical, air conditioning or plumbing contractor they give me the run-around in quoting a price. It's always so much per hour "plus materials," but they hem and haw when I ask for an estimate on how many hours it will take and how much the materials might cost. Surely they must have some idea of what it costs to make common electrical repairs, don't they?

Reply: Yes. Most electrical professionals in Illinois do have a pretty good idea, but only after they determine exactly what needs fixing. Trying to pinpoint an electrical problem over the phone based upon a homeowner's description is like a doctor treating a patient without an examination. You may think it's just the sniffles, but what if it's the onset of pneumonia? What if the medicine prescribed not only doesn't help you, but makes you even sicker? Likewise with home repairs.

Another part of the problem has to do with traditional pricing of labor on a per-hour basis. A company can lose its shirt if it guesses wrong about how many hours it might take to do a given job. Variations come into play based upon the system's complexity and accessibility. For instance, some repairs may require breaking through a wall or ceiling, which can add an hour or two to the job.

The cost may also vary with the skills of the service technician dispatched to the job. This is something most companies don't want to talk about, but their best technicians may be twice as fast as the inferior performers. In most cases it is simply the luck of the draw who gets dispatched to your house.

Then there are those unscrupulous operators who, when work slacks off, may compensate by slowing down to pad their labor hours.

Some progressive service firms are trying to resolve these problems by turning to a flat rate or "contract pricing" system. Once the problem is diagnosed, the service technician tells you the precise amount it will cost to fix the problem, no matter how long it takes him or her to do the work. It works just like you suggest - the contractors use their experience to average out the cost of doing various types of jobs. These prices are listed in a book or sometimes in hand-held computers issued to the service technicians.

However, most firms using the flat rate system still will not quote a price over the phone. Instead, they typically charge a diagnostic or travel fee to cover their cost of making the on-site inspection. This fee is often applicable whether or not you choose to follow through on the recommended repairs.

Some people get annoyed at this, but there is no other realistic way to do the job right. It costs the company money to dispatch a technician to the jobsite and must pay the person for time spent trying to figure out what's wrong.

For instance, if an electrical outlet stops working, it might be something as simple as a loose neutral wire. But it also could stem from something more complicated like a problem with the service entrance or breaker panel. There is a big difference in the cost of service.

Also, there may be more than one possible approach to fixing a problem. At some point, you might be better off replacing the broken equipment rather than repairing it. A knowledgeable Service Technician can't present intelligent options until he looks at the entire system.

This is why it is risky and unfair for a service firm to quote a price over the phone. Telling a homeowner something will cost "approximately" $400 to repair is a hair trigger to an argument if that person ends up with a bill for $800-900. Reputable companies can get their reputations soiled unfairly by innocent misunderstandings. This is why so many home repair firms are reluctant to quote prices over the phone.

On the other hand, what if a company covered itself by quoting the price of what they might "imagine" to be the worst-case scenario? Most people would call someone else to do the job. Or if they don't, that worst-case scenario could well turn out to be a self-fulfilling prophecy.

There are some companies that do give estimates over the phone. Some mean well but just don't know any better. They are counting on luck to bring them a job that isn't any more complicated than they anticipated. Others are desperate for work, and there are always those few bad apples who will purposely quote a low price just to get in the door, then come up with all sorts of "oh but" excuses to jack it up.

Personally, I think there's a lot to be said for flat rate pricing. The advantage to the home owner is that once you agree to the repairs, you don't have to worry about the meter running on labor charges nor about "extra" material costs. You will know exactly how much it will cost, whether it takes one hour or all day.

This system was developed precisely because of the frustrating situations described. Service contractors don't like hemming and hawing any more than their customers do. It is a constant struggle to find prices that are competitive, yet which allow us to stay in business and earn a reasonable profit.

Proprietary Information, Contractors 2000, Inc., Copyright 1994
When To Do It Yourself -- And When Not To ΚΚ

Gigantic home improvement centers and hardware stores have sprung up to service virtually every community in the country, with a vast array of tools and building supplies available to every home owner. You can find literally hundreds of books and magazines dedicated to the subject of home improvement, many in the form of do-it-yourself (DIY) manuals. The craze has also been popularized by TV shows such as the long running PBS "This Old House" series and various clones.

Saving money is perhaps the main motivation behind most DIY projects. Coupled with that is the fact that some people simply enjoy working with their hands. They derive a sense of satisfaction out of building things and doing their own repairs. As professional tradespeople, we fully understand this feeling of pride at seeing the fruit of one's own labor take shape. There is nothing more satisfying than completing a home improvement project successfully. We would be the last to discourage anyone from tackling a project.

However, as professional tradespeople, we also get to see the flip side of that coin on a regular basis. Hardly a week goes by when our company isn't called to finish or repair a botched job by someone whose expertise didn't quite match his or her ambition. Here is just a short list of the many unexpected things that tend to arise in home improvement jobs:

• Incomplete instructions. Mr. and Mrs. Home Owner buy one of those packaged products at the home center that comes with installation instructions. However, the instructions are not always written in clear language, or sometimes leave out critical steps. It's like a cooking recipe that uses terms such as "dicing...simmering...basting." People who know their way around a kitchen know what to do, but a beginning novice may not be familiar with common cooking terms. Same with do-it-yourself work.

• Coping with the unexpected. No matter how detailed the instructions, they cannot account for every possible situation that may arise with a home improvement project. The box containing the kitchen faucet you bought at the new home center may have instructions telling you how to remove the old one and put in the new, but what happens when you discover stripped threads and a rusted "frozen" nut that resists turning by even the strongest hands and pipe wrench?

• Harder and more time-consuming than expected. Most people tackle larger projects on weekends, and maybe for an hour or two at night after they arrive home from their regular jobs. The first few weeks of this is a labor of love. As time passes though, the project takes up all of a person's free time and becomes drudgery.

According to the National Association of the Remodeling Industry (NARI), many professional re-modelers won't even take on a DIY job gone bad. They find it too difficult to fix the problem and too many liabilities involved in taking on the work. Often the rescue job may end up costing more than a project started from scratch by a professional, because the professional may have to first "undo" much of the DIY work.

Here are some guidelines for deciding which jobs to tackle on your own:

• Painting is usually a good DIY job -- in fact, it's the most popular DIY project among homeowners. The best part about paint is that it is just paint. If you mess up the job, you can always paint over your mistakes. Local paint companies can offer advice for the best finish. However, if you have high ceilings or tend to be clumsy, you may want to call in reinforcements and avoid climbing your ladder.

• Cleaning out gutters and checking the roof are other good spring-cleaning tasks; however, replacing a roof should be left to a professional. It is essential that your roof prevent moisture from entering the home. A poorly placed shingle or flashing could mean leaks and water damage.

• If you are patient and detail-orientated, you may be suited to some larger home improvement tasks, ranging from building a patio to replacing a faucet. However, larger projects can get unwieldy for a weekend DIY job. Be certain that you have the skills needed for the job. Moreover, many product installations require special tools that are not always found in the average household toolbox.

• If the job involves electricity, call a professional. One mistake here could be fatal. Many jurisdictions require that only a licensed professional perform certain types of work in order to meet building codes.

It's also best to leave structural work to a professional. Not only could a mistake be dangerous, your home may not meet the local building code. This could make it impossible to sell without corrective measures.

In addition, EPA regulations forbid the venting of refrigerant gasses into the atmosphere. Keep this in mind when tinkering with an air conditioning unit or refrigeration project.

*How long can you afford to be without full use of your home?
Remodeling is messy work that often renders one or more rooms off limits. Or, you will be without a key piece of equipment, such as a furnace or water heater or toilet. Professionals can do the job a lot faster and minimize the time your home will be disrupted.

In the end, the decision boils down to common sense. If you enjoy DIY projects and are good at them, by all means save yourself some money. But don't lose sight of the fact that saving a few dollars now, often increases the cost of a project in the long run.

Proprietary Information, Contractors 2000, Inc., Copyright 1997

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