There are several different ways and methods that contractors use to develop pricing for homeowners.The most commonly used method is called ” cost-plus pricing’ this is when a contractor calculates their material list, adds that to their labor cost and then adds that to a multiplier to the sum of the whole thing. The most common cost plus percentage is 35%. The problem with cost-plus pricing is that it incentivizes contractors to order too much material or to inflate their labor prices. Under this pricing system, the contractor is not incentivized to save the homeowner on their project cost. In all honesty, it incentivizes companies to keep the homeowner’s project cost high, so that in return the company makes more money.
Our company does not offer our homeowners cost-plus pricing. We try to maximize the bang for their buck that our customers pay for their siding, window, or roof replacement. However, Hatch Homes provides our homeowners with individually itemized pricing. While this method takes more time, we think this method is better in the long run for homeowners. We do this for two reasons:
1. Transparency – Hatch Homes believes it is essential that homeowners know what their remodelers are buying. This also prevents hidden fees and/or unexpected costs in the form of a change order.
2.Flexibility– When all of the project cost are listed individually, homeowners can select what they want and disregard what they don’t. The typical remodeling contractor offers one price or three prices in the form of ” good,” ” better” ” best.” When remodeling companies provide blanketed prices, the homeowner does not have the freedom to customize their project to fit a specific cost.
Hatch Homes agrees with the progressive insurance model. You name your price, and we will come up with a project around that price.
Lastly, Hatch Homes offer three pricing columns for all our proposals:
1. Total cost– Seems pretty self-explanatory. Total cost is the price that is given for the value of the project.
2.Cash discount– Our company offers a cash discount. This is for homeowners that pay for their project with cash/check/or an electronic ACH payment.
3. Monthly payments– We also offer 0% interest financing over 18 months. This financing agreement is made through our partner, Synchrony Financial. The financing is the same as cash. Hypothetically speaking, you can defer cash payment for 17 months and 27 days without paying a cent in interest.
To receive your transparent and hassle-free consultation, call the office of Hatch Homes today! You will be glad that you did!