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Updated almost 11 years ago on . Most recent reply

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George P.
  • Property Manager
  • Livonia, MI
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dress code when meeting a contractor

George P.
  • Property Manager
  • Livonia, MI
Posted

i used to use individual tradesman (painters, cabinet guys, windows, tilers, etc) on my previous projects. i use to meet them in my paint stained work clothes thinking that i am showing them i know how to do their work, thus expecting a "honest" quote.

boy was a wrong. this project i am starting now I am trying to use general carpentry guys for the whole project instead of individual contractors.

i have pants and shirt, new truck (happened to purchase) is in the driveway. I am immediately treated differently from the initial handshake. have not gotten quotes yet, but i expect a different result this time.

any similar experiences??

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J Scott
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  • Investor
  • Sarasota, FL
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J Scott
Pro Member
  • Investor
  • Sarasota, FL
ModeratorReplied

First, I *LOVE* negotiating...and I think I'm generally pretty good at it. But, for various reasons that are beyond the scope of this thread, I also believe that when negotiating bids with smart contactors (the type I like to work with), I'm generally going to be a major negotiating disadvantage. So, I generally don't negotiate bids with contractors.

Instead, I prefer negotiate BETWEEN bids, when I do believe I have a negotiating advantage...

Here's an approach I use relatively often with new contractors, and with a few exceptions, it works pretty well to help me get the best bids with the least amount of negotiation (and the least amount of risk, since again, I'm not usually going to win a bid negotiation with a smart contractor)...

I'll walk the contractor through the project. I'll let him know that I'm getting multiple bids, I don't like to negotiate on prices, so just give me the absolutely best price you can, and if it's good (and if the rest of my due diligence checks out), the job is yours. When we part, the last thing I say is a reminder to give me their best price because I *really* don't like to negotiate.

Invariably, I'll get a bid higher than what I believe the contractor would be willing to do the work for (they don't believe I won't negotiate and are managing their risk). I'll thank the contactor for the bid and I'll tell him that, unfortunately, it's more than I can afford to pay...but hopefully we'll have a chance to work together in the future.

9 out of 10 times, the contractor will ask, "Well, what *are* you willing to pay for this job?"

At that point, I'll throw out a number that I would be willing to pay for the job. Many times, the contractor will say, "Sorry, I just couldn't do it for that price." But, on many occasions, the contractor will say something like, "Okay, I can do it for that," or "I can probably get close to that number."

I'll then very nicely remind them that I hate to negotiate, and I wish they would have just given me their best price right off the bat. I'll then say, "Would you like to come out and bid the next project...if you can just give me a great price like the one we just discussed, but without having to negotiate -- I HATE negotating -- you'll likely get the job."

Sometimes they'll be pissed and feel like I'm playing games. But, other times they'll tell me that they look forward to bidding my next project. When they do bid my next project, I can be fairly confident I'll get their best price on the first bid. And on all subsequent bids.

I believe I get pretty good prices on my rehab work, and yet 90% of the time I don't try to (or have to) negotiate a single penny off a bid.

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