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Quality is More Important Than Price

Benchmarking For Small Remodeling Companies

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: 

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

The survey focused on  homeowners who had remodeled in the last five years. Both those who hired professional remodeling contractors and those who did it themselves were surveyed.
the survey was designed to get a better understanding on the homeowner decision-making process.  Here is some interesting facts I gleaned from the survey:

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:

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:

 Of moderate importance were:

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:

Most Common Jobs for Contractors

Homeowners are most likely to hire remodeling professionals for certain types of jobs, such as:

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:

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:

The links above will bring you to other helpful articles to assist you in improving your business strategy.  Good Luck!

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