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Tips when Dealing with Contractors/Laborers:

Sometimes it just takes one phrase that you can say that will help you reduce your costs and save hundreds to thousands when dealing with service sector businesses. Some of these businesses, such as contractors/laborers, are extremely competitive when trying to get your business. They will all claim to be the best and claim that they do jobs for all of your friends and neighbors, but this may not be the case. It is all an illusion that they create in order to get the price that they are asking for. Before settling on a certain contractor, plumber, electrician etc. know your stuff. Know what other companies charge, around how much it should cost, and most importantly ASK QUESTIONS.

Ask why the prices are so high, if they are. There may be a good explanation or there may not be.

Ask, "Is that the best price you're going to offer?".

Don't be afraid to ask this question. It will ultimately make the person question whether they are offering a fair price and what they can do to possibly lower their price. While you're waiting for their answer, keep quiet.
They may answer with, "Yes that is the best deal I will offer" or they may say, "No, I am willing to discuss the price if I am given the job".

If they think that you know that you can go to other contractors to get the job done, are going to wait until you find the best price? They can't push you around and you could be employing them. Chances are they will negotiate a price with you.

By using the simple 9 word phrase "Is that the best price you're going to offer?" it could possibly save you thousands in the long run.

Another tip to live by is to be fair to the contractor in return. If they underestimate the job and it ends up costing more than expected, help them out. There is nothing worse than burning bridges with people who you work with.

THREE STEPS TO LIVE BY

Again try out the simple phrase with your rehab real estate deals. Here's an overview of how you should deal with contractors/service sectors.

1. Know how much the job should cost- again do your RESEARCH. Ask for referrals from other companies and friends who have had work done themselves.

2. If the quote is higher than the costs that you have gathered, ASK WHY- they might have a good explanation and be willing to work with you to lower the prices.

3. Finally, before ever giving the person a job ask, "Is that the best price you're going to offer?"- don't be afraid to ask this and remember it may save you thousands in the long run. Negotiation can start here.

Good luck when dealing with your contractors and remember these 3 steps- research, ask why, and the big question.

I'm a wholesale investor. My company, LBHoldings, is located in Ann Arbor. I spend a lot of time negotiating with banks to get the best deals on Metro Detroit REOs.A great deal of my time and money is spent on marketing to find the best Metro Detroit real estate. One of the reasons investors keep coming back to me is that I find a TON of deals and make just a little on each of them.

Article Source: ArticlesBase.com - Tips when Dealing with Contractors/Laborers