It is tough out there in the marketplace right now and I see many people getting confused about the difference between price and value. Since we are a green contractor we face these challenges quite often. Since we are not the most expensive or the least expensive in price we are able to make our homeowners feel like they are being treated fairly.
So what is this value term that we keep hearing about?
Is it possible to be a higher price and the low cost provider? Yes!
That is where value comes into play. We typically are not going to be the lowest price since we are typically providing more items than other contractors. Can you see the difference in the proposal or contracts? Sometimes, but not all of the time. Here are some key things to look for that may cost a little more but provide a greater value:
Energy Efficiency- this is the low hanging fruit and is easy to sell. By adding a small amount to the budget to make your home or building more efficient you are able to save money on your utilities. If you are financing the project for 15 years or more than you should be cash flow positive immediately. That is VALUE!
Durability- I love the phrase- “You get what you pay for” My wife and I were having a chat this morning about this very subject. She made the comment that most people go for the cheapest price thinking that they are getting a better deal. Well- we did just that a few years ago. We got a dishwasher that was a couple hundred bucks less than the what I should have purchased. We have paid hundreds in repair fees just to get the dishwasher to a mediocre performance. WAS A CHEAPER PRICE, BUT NOT A GOOD VALUE! It cost us more over 5 years than then higher initial price of the better dishwasher.
This does not take into account the mental anxiety that we both have had to go through when we unload the dishwasher and out dishes are not clean. So we have to wash them again- not resource efficient. I finally had enough about a month ago and have ordered a new dishwasher. Last week I got an e-mail letting me know that they just got ENERGY STAR partner of the Year! My clients have used this dishwasher and have been very pleased with the results.
HIGHER PRICE, BUT A BETTER VALUE! It also comes with a good warranty. This is something that we offer to our clients as well that our competition does not. All of our renovation come with a 3 year warranty where our competition stays with a 1 year one. How can we afford to do this? We use better products and install them with good craftsmen. This lowers that amount that we have to fix and pay for! THAT IS A GREAT VALUE!
The brand that I chose to go with for my house was a Bosch dishwasher. Here is the press release that I just received that added even more value to what I just purchased.