I used Mr. Electric for some electrical work and found out later that they charged way too much!
I had recently bought a foreclosure house that I was fixing up for my family and myself to live in. After a start fixing the house I found out that this house was built as a very base or basic model. There were many rooms that did not have full hookups or enough electrical outlets. So I looked in the phone book and found this Christian electrical repair service called Mr. Electric.
Mr. Electric
(704)359-8051
I had them come out and install some additional electrical outlets in various rooms throughout the house. They were very nice and courteous and very professional. He asked me how many rooms down the outlets they were going to be doing and then they gave me a rough quote over the phone and then when they showed up in person they gave me a more firm idea of what it would cost.
And yes the more firm quote was higher but I can kind of understand that because over the phone there is no way for them to know if there’s the correct or required wiring and shielding behind the outlet box. They also needed to look at the wiring in the house and the breaker box.
They were very professional and showed up exactly when they were said they were going to because I had no idea of what an actual bill for this electrical work should be. Their price was somewhere’s around $800. They were done with the electrical work somewhere between an hour and two hours.
They were very professional and everything looked right. The only thing or complaint that I could have after they left was that two of the outlets were installed upside down. That’s not a big deal it is something that I or anyone can easily fix, so I didn’t call them back to have that fixed as I fixed that myself.
But later on when we decided to buy another foreclosure as investment property I ran into some friends of mine that do investment properties and they told me when I told them about Mr. Electric and the $800 or so that I paid that I got seriously overcharged. They told me that they had this electrical guy that worked for one of the big name electrical repair services during the day and at night moonlighted on his own.
He said the quality of his work was phenomenal and his prices were usually one fourth of what the big-name electrical repair services charge. I ended up using this electrical guy that my friends referred me to and he was great. His prices were really low and extremely affordable.
One day, just to see what he would say, I told him about the job I had Mr. electric do for me. I told him exactly the same number of outlets and everything and he said his price would’ve been $150! That’s less than one fourth of the price that Mr. Electric charged me. Can we say price gouging – ouch!
This guy also told me said if you need someone to work on your house you could find people like him in your local Craigslist. There are lots of experts and specialists in everything from electrical to plumbing that can be found moonlighting that are far cheaper than the namebrand service companies that they work for.
My advice here is to definitely do your homework and I will research before you hire any big namebrand service company like Mr. electric. You could literally save yourself a ton of money on services and repairs for your house. Be sure and call around and ask for references first this way you don’t get praise gouged like I did.
Mistake #1 – You pick a contractor based only on price!
The old adage is really true: “You get what you pay for.” This is especially true in the contracting business. If you want good contracting you should decide to deal with a contractor because of the overall value you receive, NOT because they are the lowest priced.
Here’s why…
Value = Quality + Service + Price
It is impossible for any company in any industry to offer the cheapest price, have the highest quality, and provide the best service all the same time.
You can get high quality and super service, but you can’t get both and still get the lowest price. Just like in your business, you hire the best people and buy the highest quality product – consequently, you have to charge more for your services.
Total Value is all three: Quality, Service and Price!
The 3 most common problems YOU WILL have when you pick a contractor who only offers the lowest price:
1. The first problem is that dirt-cheap contractors usually don’t stand behind their work if there is a mistake. Sure, other contractors might do your job for a little less money, but how will they treat you when there is a mistake with your job? To give the cheapest price, they usually have low-wage, inexperienced employees that have not been adequately trained. They also cut corners by using cheaper material and labor to give that low price. The end result is that you get what you pay for. And the little bit of money you saved ends up costing you more in the long run! Believe me, this is a little saying we tell our customer: “The good feeling of a cheap price is long gone before the stench of poor quality is ever used up.” Also, “the bitterness of poor quality remains long after the sweetness of low price is gone.”
2. The second problem with a contractor who offers the lowest price is that they tend to also offer the lowest quality. Plainly said, “Shoddy or low quality contracting because of cheap price costs you money.” No amount of savings is worth this. You’ve worked too hard and spent too much money on your home to throw it away for the few cents you save on a contractor instead of investing in the life of the system.
3. And the third reason why picking the cheapest contractor is a problem is that you might get charged extra for things other contractors normally include in their quote in the first place. You’ll be charged extra for such things as a filter, thermostats, overtime due to bad estimates, or application of permits. Cheap contractors nickel and dime you to death. What seemed like a good price actually ends up costing you more in the end. This is just a tactic cheap contractors use to get in the door.
To avoid buying on price alone, we suggest you choose two or three contractors and rank them in the order that is important to you such as Quality first, Service second and Price last.
Mistake #2 – You Think All Contractors Are The Same
Every contractor is different. No two contractors are really the same. Every contractor has different equipment and different employees who know how to do certain kinds of jobs well. Every company has a different number of employees, each with different abilities.
Contracting is art and craftsmanship combined. Most people who hire contractors don’t truly understand that despite all of the technological advances, contractors still use the same quality work habits as twenty years ago.
Contrary to what a lot of people think, It takes craftsmanship to turn out quality work. Contractors have to diagnose, measure and perform complicated calculations before they can start a job.
Communication is the key to picking the best contractor for YOU.
- Ask what type of work they do.
- Ask how long they have been in business.
- Ask what is the timing required to finish the job.
- Ask if they or subcontractors do the work.
- Ask if they are using skilled technicians or cheap laborers.
- Ask any other questions that are unique to your needs. This will help you decide whether they are the best contractors for YOU!
After you ask your questions, it will become obvious which company you should choose. The company that wants your business will prove to you that they are the best contractor to do your work. Take your time to decide which contractor you would like to use – but when you decide, you must be loyal to them (See Mistake #3).
Mistake #3 – You always have three or more contractors competing with each other for your work.
You may think this is good way to do business; it is to some extent. But here is why it usually isn’t a good way to deal with contractors.
A good contractor has enough loyal customers so that they don’t have to deal with price shoppers. Once you find a good contractor, you must be loyal to them. If you flip-flop from contractor-to-contractor, a good shop won’t be too motivated to keep YOU as a customer, and you’ll be left “out in the cold” literally when you most need them.
Price is important. But price should not be more important than good quality and good service. This is what people typically like to do. They try to get everyone fighting for the same piece of pie. This might be an OK short-term strategy because you save a few bucks. But when you need a favor or super fast service, not one of these companies will instantly bend over backwards to help you. (And if you have been a price shopper in the past, they will probably charge you more!).
Every contractor expects to bend over backwards for their loyal customers now and then. He or she might have to work all night or on a weekend to do a super rush job or pull off a miracle. Provided the customer is loyal, the contractor will do all he can to help you meet your needs.
All good contractors will be loyal to you if YOU are loyal to them.
Are you kidding me? Your advice here is to use the cheapest guy you can find? These are guys that are willing to come out and do the work without any insurance and any warranties for you. This is similar to a politician that cheats on his wife, if he has no loyalty to his spouse, or in this case his employer, what makes you think you can trust him yourself? This is a guy that is most likely stealing those parts he’s installing from his own employer, in case thats not clear for everyone that is theft, there are no ifs ands or buts about it. Now god forbid something goes wrong (it happens all the time), or in the case of electricity something burns down who is going to cover the loss? Of course this guy is cheap, he has no work comp, no liability insurance, no warranty, no licensing, no anything! I require All of these things when I hire someone, I know someone that had a simple sprinkler guy damage their main sewer line, he was doing the work on the side and they got the large bill when they realized their decision to hire this gut on the side left them with no help in the matter and since he was so cheap he had no money to pay for the damage. Have fun with your moonlighters, I personally still believe in commerce and protection from idiots.
Also anybody on Craigslist working for 1/4 the cost:
Doesn’t have the overhead that a shop paying federal & state tax’s, bonded and insured and paying licensed electricians to work on your house.
They dont buy permits, so good luck collecting on your insurance when your house burns down.
Most states require proof of permits, when you sell your house also.
And most moonlighters take material from there day job, thats why there material costs are non existant.
No pro is going into a house , fishing outlets in rooms , buying there material from a store, paying labor and able to pay tax’s and make money and charge 150.00 out the door, and do it legally.
Craigslist is where you find non tax paying, moonlighting, material stealing people, working only for there labor .
Good example of why alot of skilled trades are screwed right now.
Homeowners will spend more time doing research on a new flat screen for the family room, then researching quality contractors.
And homeowners have no problem having a person without a contractors license, and no insurance,no warranty, work on there home , if they can save a couple hundred bucks.
But they wouldn’t buy that flat screen tv without a warranty.