Price Comparison Guide
Same Products, Very Different Prices
Do you ever wonder why a lot of companies use the same products, but the price difference is so far apart?
How do you think some companies quote as low as they do? There are a million ways a company can cut corners to create the illusion of a deal, but is it worth it? Low prices are very tempting until things don't go as planned.
Why do you think some companies' prices are so much higher than others'?
That’s because not all companies are the same.
About This Guide
Lift the Estimate Fog
This guide was designed to help customers make informed decisions and lift the common estimate fog. There is a lot more to construction projects than price, materials, and warranty. If that is all you plan to consider, you will likely be missing the most important part of your investment.
Here are the top 6 reasons why.
Not All Companies Are the Same
The Top 6 Reasons Prices Differ
01
Becoming popular in our community
Private Equity Groups: Local Companies Sell Out Under the Same Name
A private equity group is an investment firm that pools money from wealthy individuals, pension funds, insurance companies, and other investors to buy businesses. This is why most good local companies get run out of business or sell out. They typically have the lowest pricing in the industry, making it difficult for actual local companies to be profitable and cover overhead. They often do all or most of the things described below to give that tempting price. Our small towns have all but dissipated, and without local businesses and tax revenue, things will continue going backward.
02
Very common in our community
Licensed Contractors Subcontracting the Labor to Unlicensed Subs
It is state law that anyone performing roofing replacement must carry an Illinois roofing license and workers' compensation on all employees. If a contractor subcontracts work, both parties are responsible for having their own license and workers' compensation policies. This information can be verified at idfpr.com and by directly contacting the company's insurance provider.It is very common for contractors to bypass workers' compensation costs to offer a much lower price. It may sound crazy, but this is one of the leading ways many local contractors underbid those who go by the book. Roofing workers' compensation rates add 43% on top of wages paid, to cover roofers for death and injury. Most consumers automatically assume everyone is covered, but guess what… they are not. Per Illinois state law, it is the customer's responsibility to verify all employees onsite have workers' compensation coverage, or they can be liable for death or injury lawsuits. Homeowners' insurance policies do not cover employee injuries.
03
Very common in our community
Completing the Work per Insurance Scope Instead of Manufacturer Specs
Insurance replacement estimates reflect the quality of materials that currently exist. Most products advance in technology, and manufacturers require updates for things like code and warranty compliance. A lot of contractors will do exactly what the adjusters pay for instead of guiding their customers to make necessary changes. Examples include reusing materials such as brick flashing, not replacing step flashing, and using minimal nails per shingle.
04
Very common in our community
Rushing Jobs to Make Up for Low Labor Rates
We often see rushed workmanship. Most consumers won't have any clue until the problem arises down the road and the project has to be redone. We also see crews not using fall protection, and this greatly puts consumers at risk. Rushing also affects the crew's jobsite preparation and cleanup. Private property and landscaping are commonly damaged during this process if the proper steps aren't taken, costing a lot of grief and out-of-pocket expenses.
05
Very common in our community
In Business for Less Than 5–10 Years
We are not saying that new companies are bad; they just haven't had time to develop and serve the community. Remodeling is a hard and dangerous job, so it is important to work with people who have experienced everything and know how to handle every situation professionally. It is very common for a contractor to go out of business or change names in the first 10 years. We see companies come and go every year. It is very frustrating for customers to hire a company that goes out of business when they have a problem a few years later. Most established businesses will not touch another contractor's work to avoid liability.
06
Common in our community
Inexperienced Employees, Poor Training Programs, and Mismanaged Jobsites
Exterior remodeling is a very hard and dangerous occupation. The labor to do the same work 10 years ago would have been at least half of what it is today. That being said, low labor costs are a huge red flag if you want professionals. Professionals often cost more because of their experience levels and quality of workmanship.
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