Why Do Some Contractors Upcharge in the Country Clubs?
I hear all the time from clients that they feel certain contractors are giving them “country club pricing’ on services. Meaning as soon as they go through the gates of said “gated community” that their pricing goes up.
These contractors feel that it is acceptable to charge them more because they perceive they can pay more. I am always blown away by this phenomenon because it goes against everything we have built our reputation upon. It is troublesome that some bad apples have made it difficult for the rest of us, striving to run our business ethically.We have been in business 20 years this year, and we have always priced our flooring customers using the same type metrics. Gated communities are plentiful in our area especially near our Johns Creek store, which was voted one of the most affluent areas in the United States a few years ago. We continually go into these neighborhoods and have for years, it has never affected the way we price jobs.
The job price can be affected by factors such as: complexity of the job, an abundance of furniture to move, or proximity to the job-site. But when all things are equal the square footage, labor, price of materials should not vary that much. On the flip side, larger volume jobs can net a better price due to the fact that the labor is spread within the entire price of the job. Volume discounts from the vendor can be obtained so that could be helpful.
There are always companies that will do things cheaper to maintain cash flow. But be careful when securing that type of lowest bidder. If a business is running that tight it may not be around for too long. And who will you call if there is an issue? We maintain the same level of service to everyone and want clients that will appreciate that.
We often get asked if we can meet or beat a competitor’s price because with having a good reputation and longevity in the business we are trusted. I even had a client tell me recently that a company quoted her such a cheap price she was ready to go with him, but now he won’t call her back. Or when potential clients will send us a competitor quote that is alarmingly low, and ask us to match it?? By staying consistent with our pricing it has allowed us to stay in business for 20 years and maintain the highest level of service so we can be around another 20 years.
Originally published at Gregorys Paint Flooring Color Atlanta.