Pay Me Top Dollar, Everyone Else Work For Pennies . . .
Posted by Rich Brunelle on: 2005-08-07 15:59:53
In the Northern California San Francisco Bay Area some fairly high income figures are earned allowing people to afford and purchase property in one of the most expensive real estate markets in the nation. The property values have appreciated so dramatically in this area that many have found themselves suddenly wealthy from property purchases years earlier. But, it seems to me that all of these persons of wealth have one thing in common. They want to be paid top dollar for what they do, but expect to pay half or less for services they would like performed.
It isn’t rocket science. You made a good deal on a piece of property with a “fixer-upper” or small home and to enhance the value some remodeling is planned. I know of one person that recently invested $750,000.00 in a property. He expects me to perform some remodeling tasks that we would normally bid for around $23,000.00. He wants the job performed for less than $15,000.00. This amount does not even cover the projected costs of the job. The enhanced value of the property subsequent to the work would probably increase this property value to close to $800,000.00.
I recently made a bid on a remodel of an apartment in which the owner detailed the quality of the materials and such. The resulting bid was around $41,000.00. A few days later the owner advised me that he had received a much lower bid and decided to accept it rather than mine. When I enquired how much lower the winning bid was, he told me $15,000.00. I later looked over the bid that I had prepared and submitted for the job. $15,000.00 would neither cover my costs for materials, nor my costs for labor for the proposed work. Note the value of the property involved is probably close to $260,000.00. The enhanced value of the property subsequent to the work would probably increase this property value to close to $325,000.00.
We recently had to back out of a project we had commenced. The property owner had talked me down to performing the job at my actual costs without reserve or additional budget. Then, immediately after the project began . . . additional expense and tasks were added to the job. When it became apparent that it would be necessary for us to pay for a significant portion of the work performed, we opted to withdraw from the project. The involved property is probably valued at close to $350,000.00. The enhanced value of the property subsequent to the work would probably increase this property value to close to $400,000.00.
Do you see a pattern here? I do. And, it leaves me questioning the ethics, if not the intelligence of people as of late. First of all, why would you expect someone to work for half the value of their service? Will you? Go ahead; tell your boss you are willing to take a 50% pay cut tomorrow. Next, why would you even consider suggesting that rates be reduced, possibly requiring your having to settle for lesser results relative to such an important investment? And last, don’t you realize that “you get what you pay for” is a relative term? If you want champagne, pay for champagne.
About the Author
Rich Brunelle is a Project Manager for a General Contractor that serves the San Francisco Bay Area. You may visit their web site at http://djam-promo.com/mgl/ or direct your questions regarding this topic to mgl@djam-promo.com