Angies List Says Contractors Offerining 30-40% Discounts

Ed the Roofer

According to a Poll that Angies List is referring to in an e-mail that I received today, NOW is a Good time to purchase remodeling, because a recent Contractors Poll revealed that Contractors are offering between a 30% to 40% discount now due to the economy.

I don't know about you, but I sure don't have that much fat to cut off and if I did, I would be doing every single job at a Net Loss and be out of business shortly.

So, are these "Fake" discounts that they are getting information about or poor businessmen contractors?

Or, is it like the Window Companies that sell a standard double hung for around $1,000.00 but start off with a no-frills option of $189.00 dollars?

Could you stay in business if you offered a 30% discount?

Ed



Read the e-mail information below:

60% of Angie's List members say now is the time to invest in your home because there are so many deals to be had. A recent poll of contractors revealed most are lowering prices - some as much as 30% - 40%!

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Ed the Roofer

Here are the responses to that blog post of theirs.

At least, the staff response stated that you should not buy on price alone, but yet, I feel that the topic title insinuates that very concept.

But, according to them, in their poll, 76% would offer a 10% discount and some other contractors would offer More. I see no indication where the 30% to 40% comes from in their original post on the topic.

Sounds very misleading to me.

Ed



The daily reminder that now is not the time to sell your house is prompting many homeowners to take a fresh look at their surroundings. According to a nationwide, commissioned poll of Angie's List members, 50 percent say now is a good time to invest in their current home.

And in a recent poll of 150 highly rated service providers on Angie’s List, three out of four said they’re lowering prices, some as much as 30 percent to 40 percent.

A little negotiation can go a long way in getting the best price possible for your project. And while the current market is great for bargain hunters, it's critical that your focus be on more than just cost. Finding the right person for your particular job is still the most important decision you’ll make as a homeowner.

Which projects offer the steepest discounts?
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Hiring tips to weed out bad contractors
How to survive a remodel Comments

Alex I only gave one star because only one of the links worked. 2/16/2009 3:10:14 PM Report abuse Report abuse


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Angie's List Staff Alex:
We fixed the links. Thanks for honest feedback. 2/16/2009 3:32:54 PM Report abuse Report abuse


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Roshele Regarding "good deals" on remodeling...sadly we contractors are seeing NO deals or discounts from our vendors/subcontractors/suppliers. On the contrary appliances, plumbing fixures and windows (just to name a few) have all RAISED their prices at the start of the year. In order for contractors to stay in business for now and the years to come we need to keep our costs where they are so that we CAN be here to service our client's. If we were getting discounts I/we would be happy to forward that onto our client's so that they get the benefit too, I'm just not seeing that happen. I just hope our client's understand that we want to stay in business and not just barely get by. We would like to be here for another 30+ years helping people get the quality remodel they deserve. 2/17/2009 6:27:34 PM Report abuse Report abuse


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puttingonthefix I want echo Roshele's comments. A contractor's expense has overall slightly increased. We have seen some decreases in supplies such as lumber but overall, many supplies have slightly increased in cost. I am sure there might some contractors who "offer deep discounts" but usually you get the quality of work that you pay for! 2/18/2009 9:36:08 PM Report abuse Report abuse


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Angie's List Staff Roshele and Puttingonthefix make a good point – not every service provider in every industry is able to offer discounts of 30 – 40%. But a survey we did in December 2008 revealed that 76 percent of respondents would cut labor and design costs to win bids. Of that group, 70 percent said they’d offer discounts of up to 10 percent, and 30 percent said they’d cut even more. As a consumer, you should feel free to inquire about discounts but you should never hire based on price alone. 2/24/2009 4:10:15 PM



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ChainsawCharlie

I'm going to offer 40% off.

Right after raise my rates by 50%

DJ9222

I just called my insurance broker and asked him if he could give me a 30-40% discount on my comp. liability and auto policies, needless to say he is still

DarrenS

Isn't it nice when someone forces you to reduce prices just to get business!

SelfContract

The goal for service magic is to sell MORE leads, and the goal for angie's list is to solicit MORE customer's fighting & registering their complaints against the contractors. They want customers have/gain more power to fight contractors even lying a little bit. The more web traffic they had, the more coming ads$$ money they made!

DarrenS

And that's the problem with Angies List. Once a customer logs a complaint, it is guilty until proven innocent for contractors...which never happens. You guys are really getting screwed on that one. You should start a a Contractors List of homeowners to avoid (aggressive price concessions, Non-payment, etc)!

SelfContract

I agree!!

BreyerConstruct

Darren, There are a few such lists, though I don't know them off-hand.

Angie's List is a tool. Not perfect, but it can be used to help you.
Again, not perfect by any means!
~Matt

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DarrenS

You are right, but when the wisdom of the crowds is left to those who feel slighted, are ill-informed, or not wise, you guys don't have a prayer to combat that.

Tiger

Like most contractors, in a good year the net profit is single digit. This year is in the red. A lot of contractors have lost their businesses in the past two years. Deep discounting can be the final mistake many contractors make before they go out of business.

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ChainsawCharlie

Airlines and hotels have customer blacklists,so why not?

ChainsawCharlie

Better to make no money than to lose money. I WILL NOT lower my prices.

Tiger

I'd rather sit in the office for no money than to work for a loss.

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