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Price vs Cost

Tuesday, December 30th, 2008

It is easy to be confused when comparing various contractor bids.  In tough economic times it is even more important to choose wisely. Comparing price to cost is critical. Price is what you will pay out of pocket now. Cost is what you will pay over the life of the purchase.  Low bids and even choosing the middle bid can be much more expensive than the high bid. Did you ever buy a shirt that didn’t make it throught the first wash? How about a car that suddenly needed numerous repairs after 50K miles?  I think you get the point.  So how can you judge the right Price? Evaluate your “contractor” not the “bid.” Check online references such as Kudzu and the BBB. Check how long they have been in business through the BBB or verify thier incorporation date through the state registry. Generally past perfromance is a good indicator of future performance.  Walk away from anyone you can’t find extensive information easily through the internet.  There is a reason companies hide. It is a choice, not by chance.