No one wants to pay more for something than they have to, so it’s no shock that many homeowners make their hiring decision based on which contractor presents the lowest bid. Not surprisingly, when it came to hiring pros, 58% of homeowners told HomeAdvisor that their deciding factor was whether the pro charged what they considered a “reasonable” price for their projects.
Unfortunately, making a decision based solely on price can be a major mistake, especially when it comes to remodel projects where homeowners want to reflect their individual style and taste. But how do you prevent them from being too focused on dollar signs? Easy. You help them establish realistic expectations of how much they can expect to pay and what they’ll be getting for their money. The challenge is to align their expectations with what’s actually possible within their budget.
Take kitchen remodel projects, for example. Over the last five years, nearly four in ten home improvement dollars have gone into kitchen projects. On average, most HomeAdvisor users spent between $17,983 and $24,637 on their kitchen remodels, with homeowners reporting projects ranging anywhere from $7,500 to upwards of $40,000.
Given a broad variance like this, it’s easy to see why homeowners might get confused when figuring out how much they should spend. In fact, 75% of them reported to HomeAdvisor that, when starting a remodel project, they really have no idea how much their project should cost.
That being said, given the fact that they’re likely getting estimates from other pros, you know your initial bid must be competitive. One way to see where you stand is to use the HomeAdvisor Cost Guide to compare your rates with other pros in your area. Based off real costs provided by real homeowners, the Cost Guide lets you filter costs by project type and zip code, giving you current insight on how much local homeowners are spending on their projects.
At the end of the day, homeowners want to know that theyre getting good work at a fair price. And you want to know that your bids are competitive, yet fair to you. Taking the time upfront with your customers to outline what their project will cost, why it will cost that amount, and what theyll get for their budget and supported with a third-party tool like the HomeAdvisor Cost Guide gives them realistic and clear expectations. It will also help avoid misunderstandings down the road, and goes a long way towards building strong customer rapport.