I decided to write about something that is coming across my desk daily and often times with alarming results.  So many of us today are negotiating deals and prices in every category and yes, we are coming up with some great bargains. From homes, to cars, to clothing, it has been tremendous for all of us to find  “real” deals out there, and so many of them are real.

Many of my Client’s and their projects require design, research and bidding. Building a custom home or renovating a space can be an expensive endeavor. Its common-place to request bids to cost compare and to assist with the budget development.  Where I am finding the problems, is the over-promising by a salesman (in my industry this could translate to a tile & stone salesman, hardwood, furnishings, appliances, plumbing and more). The over-promising is so common today for the obvious; cash flow for so many has essentially stopped, resulting in a common hardship. We can all be compassionate and identify, but you need to ensure what you are getting for the purchase and make sure “the promises” are documented, and the extra step, approved by a manager.  Recently, Client’s have been submitted formal deals with promises, and then the changes come once the contract is signed. In many cases, what they thought they were getting was not the case at all.

Be savvy when shopping, especially for the big purchases, and don’t assume you are going to find high-end quality for low-end prices. You can expect a savings of up to 20%, but not half (of course liquidating showrooms, discontinued product, etc. are all a different story and can get great finds for a steal, to assume this in design however is not realistic, it is just simply a bonus).

The biggest concern is “who” you are doing business with today.  Again, this is an area where compassion is natural, but being savvy is key.  I have Clients that may want to obtain two and three bids, but may not have been cautious about “who” is bidding the project.  I am very finicky to work with in this area because my very first concern is my Client, their project and its successful completion. My second concern is the product.  Example: if you have invested into wonderful stone tiles that are going to transform your home into a timeless, Old-European space, DO NOT put the stone in the hands of an unqualified installer, or someone that bid the job so low.  Simply, he bid the job so low because he needs the cash flow. Essentially failing companies are using Client’s cash to stay afloat. Regretfully Client’s making deals with installers, fabricators, etc. facing hardships will have horrific results.

Example: An installer may take an upfront draw and then not have the money for the materials required on your project. You may notice that things start out wonderfully, resulting in cut corners, delays, and perhaps “no-shows”. A horror story to share; – Perhaps the installer pickups your material as authorized and never shows up to the job….material also missing equating to thousands of dollars.  These stories go on, and yes all very real.

In addition, you must be able to confirm that the bids are apples to apples. I have seen more “vague’ bids in the last several months, then in the (22) years in the industry. A vague bid is set up to protect the bidder, not you.  A vague bid allows the bidder ins-and-outs that were never agreed upon. A vague bid will not provide you what you are looking for …. In my opinion, a vague bid goes into the shredder and into the recycle bin…period.

If you opted to aggressively negotiate and it was agreed upon, you then need to ask the question, “How were you able to reduce the costs and how does it affect the quality of the project?” You need to be aware that something has to give.  It may be that the nature of the project allowed for a cost reduction; (i.e.: no travel required, no warehousing, the right team is in place for a successful completion, the demo is straight forward, etc.) It is crucial to ask the questions and document the results. A nightmare outcome could be; you have installed a beautiful stone floor, but steam-cleaning & sealing, nor the proper installation was not included because the costs were reduced….Well, you have a beautiful floor… for a year and in a year your floor will be dirty, dingy, stained, cracked and a problem. Think through what you are asking for and what the results will be. Be cautious, be savvy, and be realistic.

My suggestion when hiring a general contractor, painter, plumber, cabinet-maker, fabricator, etc. is rely on the very, “old-school” method of contacting owner’s of his/her current projects. Current references are going to reveal what is going on today. The history may have been great, but these last few years have taxed many very good builders & installers and they may be doing business differently with current economic times. Have a list of questions prepared and review all of the them. Ask the builder/installer/tradesman if they have a D & B (Dunn & Bradstreet) so you can request & review their financial profile. The current Client reference combined with a D&B will give you a real sense of what is going on with this person/company and if they are a risk to do business with.

Some of my Client’s might say I am stubborn in these categories; agreed, I am stubborn about who I do business with.  I do know from personal experience that those of us that have always worked hard for our Clients are still working today. Many of my tradesmen have been busy through these tough times because they have been trustworthy, respectful of the project needs & the Client’s materials and look to the future in building strong business relationships.  Remember, if the “bid” seems too good to be true, IT IS too good to be true. BE A SAVVY SHOPPER!