After getting several proposals for an HVAC install, there are two companies that we feel most comfortable with. However the project is really stretching our budget. Their estimates are roughly 25% more than the lowest proposals we got. What kind of wiggle room can we expect without offending them? What are you (as a contractor) usually willing to negotiate these days?
Negotiating room?
killwhat
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fair enough, but when i pay someone to work on my brakes i don't negotiate. I go with the people i trust to do the right job the right way and i pay them what they tell me is due. their asses are on the line afterwards and i'd like to think they know that when they add things up. i don't mean anything personal, but your wiggle room is in the various bids you have asked for.
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3,785 Posts
the lowest bid has no wiggle room.
I like the good better and best type of bids,
and think that this gives the home owner a range
of prices..same size but lesser efficiency..pay less now
and more monthly or more up front and benfit for
life of unit.
good for you shopping several companies and
best of luck.
I like the good better and best type of bids,
and think that this gives the home owner a range
of prices..same size but lesser efficiency..pay less now
and more monthly or more up front and benfit for
life of unit.
good for you shopping several companies and
best of luck.
The car analogy is an interesting one, however considering the price tag is that of a new small sedan (2 ton system), it feels a lot more like buying a car then changing the brakes. And while, I wouldn't haggle for a service/repair job with my mechanic, I would certainly negotiate the purchase of a car.
4 tires at TireRack.com $400. Install at local tire shop that I trust $100. Total price $500.
Same Tire Shop quoted $150 per tire installed for a $600 total.
I went the TireRack + $100 install approach to save $100 on total costs. After the local shop finished they job, they asked me what kind of deal I got on the tires. I told them and they said they would have matched it if I told them......Well I told them if they didn't quote me $150 a tire I would not have had to look at TireRack.
Long story short, for people (ie read homeowners for HVAC) not actually in the business, it is not always clear when you can and cannot negociate the price. I think the homeowner on this post was just looking for general thoughts from the pros on the board.
Same Tire Shop quoted $150 per tire installed for a $600 total.
I went the TireRack + $100 install approach to save $100 on total costs. After the local shop finished they job, they asked me what kind of deal I got on the tires. I told them and they said they would have matched it if I told them......Well I told them if they didn't quote me $150 a tire I would not have had to look at TireRack.
Long story short, for people (ie read homeowners for HVAC) not actually in the business, it is not always clear when you can and cannot negociate the price. I think the homeowner on this post was just looking for general thoughts from the pros on the board.
Sorry, thought a not too specific price range was OK. corrected the copy.
Joined
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8,069 Posts
see what happens when one blows out or gets a nail in the side wall
the 16% you saved (NOT including your time, shipping, travel to local shop, absence of face-to-face transaction with internet company based in Indiana, sales tax, potential warranty issues, potential return costs, etc) might have been better invested with the local guys you trusted well enough to put the tires on for you. I don't mean to be defensive about the op's query, but dumbing down a quote dumbs down the install and that effects the whole trade. A new system is an investment.
Fenian, read through my responses but of the 5 companies I consulted, 4 have so far given me their proposal and 3 of those 4 have made it very obvious that there was room for negotiation without me even hinting at it.
Then your question has been answered as best it can be on this site.
Most contractors on this board have no room. So we can't tell you how much would offend the contractors you have had out.
Let know how it works out for you, after its been in for a while.
Most contractors on this board have no room. So we can't tell you how much would offend the contractors you have had out.
Let know how it works out for you, after its been in for a while.
I agree and I understand the reluctance to come forward with any percentage or figure for those that would even consider it. While we negotiate all the time in my line of business, I don't know that I would go online and display the math in full view. 
Will report back at some point. I appreciate everybody's responses. thanks.
Will report back at some point. I appreciate everybody's responses. thanks.
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8,069 Posts
catmanacman,
Unfortunately, that company is not the one we feel most comfortable with, but it was very obvious from our first meeting that they were more than willing to negotiate. As I mentioned in my other posts, 3 of the 4 companies that have given us their proposal so far, have made similar overtures.
Unfortunately, that company is not the one we feel most comfortable with, but it was very obvious from our first meeting that they were more than willing to negotiate. As I mentioned in my other posts, 3 of the 4 companies that have given us their proposal so far, have made similar overtures.
Embarassing!!!! That certainly isn't professional of you. "someone has made me make less" Wrong, nobody is making you do anything. You would have had to agree to the amount before starting the job. To suggest you would not do what is expected and/or not put your heart into the job is a disgrace. Hopefully your brake mechanic doesn't have the same attitude.
I think this is a clear example of why HVAC is so frustrating to the homeowner.
HVAC is so frustrating to the homeowner because it is a specialized trade that most people don't understand. We are trained professionals, as business owners we carry a lot of overhead and must turn a profit. It is frustrating to us when homeowners think we should do work for nothing.
It's frustrating because HVAC is a skilled trade, having a system installed is not like buying a car or refrigerator. The quaility of the finished product actually depends on the skill of the installer. So the frustrating part for a homeowner is choosing the "correct" installer.
There are many of us who take pride in our work and install systems that work and look great and provide many years of trouble free operation. I am more costly than most contractors, but in that cost I have extra time built in to pull proper vacuums, use N2 while brazing and use the best materials.
There are many of us who take pride in our work and install systems that work and look great and provide many years of trouble free operation. I am more costly than most contractors, but in that cost I have extra time built in to pull proper vacuums, use N2 while brazing and use the best materials.
nice.
to further it again, assemble it in the basement with a flue pipe taped to the exhaust. Same deadly potential that the installer is liable for. Some things should not be nickle and dimed.
I feel bad for the contractor who has to lower their quote. I'm sure they need the work, but they will take shortcuts and human behavior would suggest to me that they'll be thinking about having to compromise their margins while doing so.
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