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!