Monday, April 11, 2011

Negotiation Strategies for Home Owners

The topic of negotiation may make a lot of people cringe or feel uncomfortable.  It could almost be considered to be in the same category as confrontation, which a lot of people resent.  Negotiation is an art, and just like any other skill it can be perfected.  Contractors use negotiation everyday within there scope of daily work, which means they are pretty good at it too.  This should not be something to discourage you from trying to negotiate with contractors because you have the upper hand on the final outcome.  This is because you make the decision on who gets your cash/check for the project.

People are always willing to negotiate for something they want especially when it’s for something that is scarce.  What this means is contractors want the business of homeowners and are willing to negotiate to get the project.  This means only good things for you as a homeowner, a bit of a discount when booking the job with the contractor.  However, a small drawback to this idea would be that if a contractor is in high demand then negotiating price might be a little difficult but not impossible.

There are a few strategies one can use to help sway the outcome to benefit you, the homeowner.  First, when the contractor comes out to your house make it a point (only if he asks) that you’re going to receive other bids even if he’s the last person to come out.  This will at the very least physiologically put the contractor in the mind set of giving you a great price for the work you want completed.  Once the contractor has come up with a price you have the upper hand to asking for more value if need be. 

Here are 3 proven negotiation tactics that will get you more value out of your contractor:

                  1)      Create a win-win situation

Example: Bill the contractor gives you an estimate for a room addition.  He quotes you for $9000 dollars.  You say that the price is too high.  He says the price is set.  You come back and ask him to throw in a small fence for your yard for the $9000.  He acknowledges and agrees to the terms.    

2)      Create a win-win situation

Most of the time contractors give the homeowner a final total for all the labor and materials included.  Contractors don’t like to break the bid up into separate amounts, but if you politely ask for it to be broken down you can help justify your budget and maybe do some of the work yourself to save money.

3)      Create a win-win situation

Supplying materials can also get you money off the job.  Believe it or not contractors always say they get the best prices on things but they too mark it up to make a profit on there investment too.  If your able to get the price of materials from the contractor than you may want to consider on using your own materials if it cost lower for you.

1 comment:

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    http://www.ripoffreport.com/kurth-contracting/builders-contractors/kurth-contracting-rob-kurth-st-29095.htm


    http://www.ripoffreport.com/kurth-contracting/builders-contractors/kurth-contracting-rob-kurth-st-29095.htm



    http://www.ripoffreport.com/kurth-contracting/builders-contractors/kurth-contracting-rob-kurth-st-29095.htm


    http://www.ripoffreport.com/kurth-contracting/builders-contractors/kurth-contracting-rob-kurth-st-29095.htm



    http://www.ripoffreport.com/kurth-contracting/builders-contractors/kurth-contracting-rob-kurth-st-29095.htm


    http://www.ripoffreport.com/kurth-contracting/builders-contractors/kurth-contracting-rob-kurth-st-29095.htm



    http://www.ripoffreport.com/kurth-contracting/builders-contractors/kurth-contracting-rob-kurth-st-29095.htm

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