Quality is More Important Than Price
Quality is More Important Than Price To Homeowners
Have you ever stopped to wonder why folks remodel their home? Or why they choose to do a project themselves vs hiring a professional to do it?
Well I think about this stuff a lot and I’ve always believed that Quality is more important than price to homeowners when choosing a re-modeler.
Let’s look at some reasons why homeowners typically remodel their homes:
- to update their homes to their taste or the latest trends
- to address the changing needs of their family
- to increase the home’s market value
- to address the needs of a home business or one’s professional work
While remodeling can be fun and rewarding, not everyone can tackle every project. I recently came across a survey where homeowners were asked specific questions on their remodeling projects. The survey was conducted a few years back and was commissioned by the National Association of the Remodeling Industry (NARI)
Quality wins out over price for remodeling jobs
- One interesting finding in that survey was that Do-It-Yourselfers (DIYers) take on remodeling jobs because they enjoy the work, not because they want to save money.
- DIYers reported that they were also but they are more likely to hire a professional re-modeler for larger and more intensive projects.
- Quality was listed as more important than price.
Quality More Important Than Price
95% of the homeowners surveyed reported that quality was very important in a remodeling job, while only 60% reported price as very important.
When asked to choose one factor as most important:
- 56% said both were equally important,
- 41% chose quality
- 2% chose price
Factors In Choosing A Re-modeler:
As for why they selected the remodeler that they did, respondents’ most common reasons were related to quality:
The majority said they wouldn’t sacrifice workmanship or materials to meet a budget and ranked price #13 of all reasons given
Professionals Influence Product and Material Choices.
Professional re-modelers are a valuable resource when homeowners are faced with the vast array of products and materials on the market. The survey found that re-modelers assisted their customers with product and material choices 80% of the time. 20% chose product and material outright for their clients.
Trustworthiness Most Important Reason For Selecting Certain Re-modeler
In making a decision about which remodeler to hire, respondents felt that trustworthiness (79%) was the most important factor.
That was followed closely by:
- service & dependability (75%),
- capability (73%),
- schedule accommodation (72%)
- best size for the type of job (71%).
- Quality (69%),
- reputation/referrals (63%),
- helpful advice (57%)
- personality (54%)
Of moderate importance were:
- design skills (49%),
- certifications (45%)
- years in business (38%).
Price (27%) did not appear to be nearly as important.
Referrals are far BEST way people locate re-modelers
69% of the homeowners listed using a referral to choose their contractor.
Referrals were compared to compared to all other responses – such as print advertising which ranked less than 10%). 44% of the folks listed that they hired a company because they had some sort of relationship to someone in that company.
DIY Still Popular
44% of survey respondents were DIYers. However, DIYers are more prevalent for less intensive jobs.
In the less than $5,000 category, homeowners said they were slightly more likely to do their own remodeling.
For jobs between $5,000-$50,000, homeowners were almost twice as likely to hire a re-modeler.
For jobs over $50,000, respondents almost always hired a professional re-modeler.
Why DIYers Do What They do?
The main reason respondents said they did their own remodeling was because they enjoy the work (79%).
Other reasons listed were:
- expense (58%)
- budget (35%)
Most Common Jobs for Contractors
Homeowners are most likely to hire remodeling professionals for certain types of jobs, such as:
- roofs (75%),
- siding (65%),
- new additions (60%).
The most common remodeling project overall is still the kitchen. Decks are still popular DIY projects, while quite a few also choose to do their own bathrooms and basements.
Little Comparison Shopping
The survey found it very common for people to hire a re-modeler without seriously considering very many others. Over half (57%) seriously considered one or two professionals (36% of which only considered one). Another 28% considered three, while only 15% of people considered more than three.
For those who only considered one re-modeler, a trustworthy reference was the most popular reason (77%). A large percentage of homeowners also listed:
- a previous good experience (65%)
- personal relationship (59%) with that re-modeler.
Pro Lesson Learned?
Don’t try to give your customers the best price. . . Give them the best value for the price and you will see more business!
If your a re-modeling pro this article should get you thinking about how you and your company is perceived.
Do people think your trustworthy? Do you and your crew exhibit these qualities:
- service oriented
- schedule accommodation
- do quality work
- have a good reputation and get referrals
- give helpful advice on planning the remodel
- have a friendly and approachable personality
- have a professional contract
The links above will bring you to other helpful articles to assist you in improving your business strategy. Good Luck!