1. Introduction
On the homeowner end, setting a realistic budget is the proper starting point for understanding how window pricing must be changed. Unfortunately for the window contractor, discovering the homeowner’s budget is often comparable to a game of poker in which the homeowner is holding all the cards. The homeowner is often wary of revealing the budget, thinking that it will lead to a price inflation by the contractor. Other times, the homeowner honestly doesn’t know how much windows should cost and therefore cannot set a realistic budget. The survey mentioned earlier revealed that 87% of dissatisfied homeowners did not discuss a budget with their contractor. This ultimately led to price disputes and quality sacrifice when the contractor tried to meet unclear financial expectations. In an effort to avoid these common scenarios, homeowners must understand that they are hiring the contractor for his expertise to deliver a quality product. This product should have a predetermined cost, rather than a cost that is determined as the project goes along. Assuming the price of quality windows is relatively consistent, it is reasonable to set a project cost by first understanding the market price of window replacement in which realistic price ranges can be discovered using various methods. The homeowner can then gauge how their specific project factors can affect the cost. These factors and cost determination methods will be discussed in detail later in the book to facilitate understanding between homeowners and contractors, but the main goal is to have the homeowner pinpoint a price that defines realistic yet quality window replacement. Once this price is determined, it can be relayed to the contractor in an effort to negate any guesswork about the homeowner’s financial expectations. With realistic budget being set, the next step in achieving transparent pricing is understanding what the windows should cost relative to the predetermined project price.
The key to understanding the critical relationship between budget and customer satisfaction starts with the concept of transparent pricing. Homeowners seek trustworthy contractors who will deliver a quality product that lives up to the price tag. They are often frustrated by the lack of honesty and consistency in the contracting industry, and perhaps no aspect of home improvement is more riddled with inconsistent and unreliable pricing than custom windows. A recent client survey by the author revealed that 94% of dissatisfied homeowners felt that the problems with their contractor stemmed from poor communication about the project. A main aim of good communication is setting and fulfilling realistic expectations. This is precisely the definition of transparent pricing – giving the customer a clear understanding of what he/she can expect to pay for the product. Pricing for window replacement (or any construction project) can be considered transparent when both the homeowner and contractor have a clear idea of how the price will be determined and have an agreement as to what the final cost will be. This concept is simple, yet is often not realized due to recurring and systematic problems in the home improvement industry. This book explores the obstacles preventing transparent pricing in the window industry, and offers a set of solutions aimed at helping both contractors and homeowners.
1.1. Importance of Transparent Pricing
Window products can be extremely diverse, ranging from simple builder’s grade vinyl windows to exotic wood windows from the other side of the world. No two windows are the same, and consumers should not have to wrestle with a high-pressure sales pitch just to get the actual price of the window that they want. A consumer knows the product that they are looking for, and they have every right to know how much it’s going to cost. High-pressure sales pitches take the fun out of shopping for a product. With the proper assessment, a salesperson should be able to give the consumer the exact price of their project. Consumers want to know that they are being charged a fair price for the product/service that they receive. The only way to ensure this is to get the exact price of the product and service that you are looking to have done. A great way to do this is to deal with a company that offers a “ballpark” price and an exact price. A “ballpark” price is a great way to get an initial assessment of a project, but a consumer should always know the exact price of a product or service that they are purchasing.
Many consumers who are purchasing windows find themselves extremely frustrated by the lack of straightforward pricing in the industry. Quite often, consumers are given a “price range” or “ballpark” price by a salesperson, only to find out that the actual price is at the extreme high end of the “ballpark” price. Sometimes, consumers will have to pay 20% or even more than the original “ballpark” price to get the window that they were looking for. Consumers quite often ask, “Why doesn’t the salesperson just tell me the actual price?” With the importance of home renovation and restoration (being at an all-time high) according to Harvard University’s Leading Indicator of Remodeling Activity (LIRA), this couldn’t be a better time for the window industry to change its ways and give the consumer the actual price of the product and service that they are looking for.
1.2. Benefits of Budgeting for Your Custom Window Project
The most direct benefit is financial. With a budget in mind, homeowners can comparison shop with reinforced focus, knowing what they can afford and what they can’t. Far too often homeowners will fall in love with a product that is out of their price range with no way of determining how much they can afford before it’s too late. Typically, windows are a long-term investment. By setting a limit to what you are willing to spend for a specific window project, homeowners can increase the amount of money saved up front, or they can reduce the terms on a loan, both of which will help to avoid overpaying substantially due to interest. Finally, homeowners will avoid any sort of overspending on their project. Knowing exactly how much they can afford to spend on their windows leaves no speculation as to how many windows they will be able to replace at one time. By avoiding multiple project split-ups, homeowners will save money in the long run considering costs are likely to go up between separate installations.
2. Understanding the Costs
Factors affecting the costs of a window project can be split into two categories: the first is what work you need doing and the second is who is doing the work. What work you need doing refers to whether you need the window replaced or if you are putting a window into a wall that doesn’t currently have one. Obviously, the latter would be more expensive. However, replacing a window does not necessarily mean that it’s a simple job. If you have an old window in a building that is made of a material not common in today’s construction, such as steel or concrete, then there will be a fair amount of additional work to do in order to replace it with a standard wooden or vinyl window.
This part of the essay aims to help you better understand the costs of your window project so that you can budget effectively. First, it will discuss the various factors that affect the costs of a window project. Next, it will cover the different types of windows and their price range. Finally, it will cover additional costs that your window project may incur. By the end of this essay, you should have a clear idea about the costs of your window project and how to budget effectively.
Each custom window project comes with its unique costs, which means it’s important to understand what affects your overall price and how you can budget accordingly. If you’re not entirely clear about what goes into the costs of your window project, it’s easy to be caught off guard by your quotation and may embark on a project that is above your desired budget. With a thorough understanding of the costs, you’ll be able to allocate your budget effectively and your window professional will have an easier time working out a price that suits your needs.
2.1. Factors Affecting Window Project Costs
The type of window or door to be installed can have a dramatic effect on the overall project cost. Each different type of window has unique installation requirements, and some windows will require alteration of the existing opening in order to accommodate a larger or smaller window than previously exists. Usually window alteration adds between $50-$1000 to the project cost, depending on the extent of the alteration. Windows installed in new openings will add the cost of constructing the new opening, which can be quite expensive for openings in walls which are constructed of brick or stone. Windows in new openings can add between $500 to $1200 for wood frame construction and between $800 and $1500 for brick construction per custom window cost. Additional features such as higher energy efficiency and special coatings will add more cost to the window itself, but can reduce energy costs in the long run. These should also be factored in during the decision making process for your project.
Where the window is placed can affect the cost. A window with easy access from inside and out will be less expensive to replace than one which is on a second or third story of a home. Ease of access will also be a factor when installing windows or doors in new areas, as construction may be necessary to create the new opening. This leads us to the next factor, type of window.
Windows are designed to provide light, views, and fresh air, but they can also affect energy efficiency and home comfort. However, changing or adding windows can become an overwhelming prospect when the factors affecting window project costs are considered. There are many variables to consider when budgeting for specific windows or doors, and understanding these factors can help to give you more control over the costs and avoid undue expenses. Some of the major factors include location in your home, the type of window or door, construction work that may be necessary, and the additional features you may want to add.
2.2. Different Types of Windows and Their Price Range
Vinyl windows are an extremely popular choice for homeowners these days, primarily because of their high energy efficiency and low cost compared to other types of windows. Vinyl windows are made up of PVC, a material that is in fact derived from salt. Despite being made out of plastic, PVC has a high R-value, which means that it is very resistant to heat flow. This, in turn, makes vinyl windows the most energy-efficient windows on the market, with a cost that is affordable when compared to the long-run energy savings. The price of vinyl windows ranges quite a bit, but a good vinyl window will cost between $300 and $500.
The highest quality and most expensive window is the wood window. Wood windows are made from hardwood and are built with tradition in mind. The entire window is made of wood, from the frame to the trim, and it is often chosen by those working on restoring an old home or constructing a new home that they hope will stand the test of time. With wood windows, there is no question – you get what you pay for. The energy efficiency of wood windows is often less than that of other types of windows, but the gap can be narrowed by purchasing wood windows with clad exteriors. As with most windows, energy-efficient wood windows will cost more than their non-energy-efficient counterparts. The price of wood windows is very high, with costs ranging from $400 to $800 per window.
2.3. Additional Costs to Consider
One would think that after shopping around for the best price on windows and the type of window to install would end the decision-making process, however, it does not. Some of the hidden costs for installing windows are what you cannot see until the project begins. For example, upon removing existing windows, there can be water damage or other damage that is unforeseen until the window is actually taken out. This damage generally must be fixed before the new windows can be installed. There could also be obstacles when installing the new windows such as rotten wood or uneven openings. If this is the case, the homeowner may incur additional expenses. Glass block or tile windows can create an obstacle; there are no replacements for these types of windows. Glass block can be replaced with a glass block vented window which provides ventilation for the area. Tile windows can be replaced with an awning window or a specialty window, both provide the needed ventilation and ease of use. These types of changes generally require a carpenter and small changes to the window openings. An additional cost that many people do not consider is the cost of time off work to meet with contractors or supervise the job, this will eventually get done after the job is complete when the homeowners miss placed paid vacation time. Also, the amount of time that it takes to clean up after the job if the contractor does not remove the debris in a timely fashion. One of the largest hidden costs in window replacement is the decrease in energy efficiency compared to new windows. New windows have an approximate 60-90% return on the investment as it relates to increases in energy efficiency. This is measured by the amount of energy needed to heat the home. With new windows, there are no drafts and a reduced loss of heat.
3. Setting Your Budget
The first step in setting your remodeling budget is to take a close look at your financial situation. It’s a good idea to review your credit report and FICO score now in order to identify and possibly remedy any blemishes that could affect your project. Many people apply for home equity loans to fund projects. The rate on a home equity loan is typically lower than that of a personal loan or credit card. This makes a home equity loan a practical way to fund your project. Home equity loans also bring potential tax savings as interest payments may be tax deductible. Check with your tax advisor concerning your personal situation. A new purchase or refinance loan is also an option. Rates are still very attractive and you may be able to roll your project expenses into the loan with little impact to your monthly payment. With a clear understanding of your borrowing power, it is time to determine how much of your cash reserves you are willing to apply to the project. When using cash there is no interest cost, but consider that not investing the cash may be the equivalent of an investment loss. For example, if you keep your cash in a savings account or certificate of deposit it may be earning a rate of 3%. By using that cash to avoid borrowing at 6%, you have effectively earned a 3% yield on your “investment”.
3.1. Assessing Your Financial Situation
Now that you understand the cost factors, it’s time to evaluate your own financial situation. You will need to be brutally honest when calculating the total amount you can afford to spend on this project. In the short term, this means cash flow. Do you have between £300 – £1000 per window, and can you commit to this without detrimentally affecting the outcome for the prospective life of the window? In the longer term, it may be wise to use some form of project financing calculator to compare rates and terms of loans, lines of credit, or mortgages to assist in paying for the windows over an extended period. If you do not feel you can recover a positive return on high capital expenditure, it may be wise to consider downgrading the quality and functionality of your windows to something in a lower price bracket. In any such economizing, you will need to prioritize certain features of window quality over others. This can be done by considering the differences between basic, enhanced, and performance types for each factor of a cost factor category and aligning them to windows in the corresponding price ranges. For example, if you are considering energy-efficient windows, you may consider between basic, enhanced, and performance types for the insulation factor. The cost factor for insulation is incremental from £15 to £50 to £85 per window. By comparing window price with specific desired features, you can effectively determine the type and quality of the windows that will yield the best value for money. This will be further discussed in section 3.2.
3.2. Determining Your Window Project Priorities
Windows serve as more than just sources of natural light and ventilation. They are often the primary means of revealing the personality of architectural spaces – especially residential environments. Windows frame our view of the outside world, and they greatly influence our sense of living space. Remodeling with windows involves the re-creation of an opening in an existing wall. It may be just a simple sash replacement or the change of an existing window to a door. Or it may involve a larger opening or a reconfiguration of an entire wall. At times, the best way to deal with a window problem is to add a new one. The decision to proceed with a window replacement or addition is followed by an evaluation of design parameters and an assessment of the range of window options. This leads to a consideration of the relative value of each option, and the determination of the best course of action. In every case, we are concerned with not just the cost, but the best use of the client’s funds to achieve long-term satisfaction. Figure 1 provides a method of evaluating relative value for window options.
3.3. Allocating Funds for Different Project Phases
When dividing your budget into the different phases of a window project, there are some standard proportions that you may want to use. If you have hired someone to do your windows, contractors typically expect payment on a different schedule than homeowners plan to use. It is common to have to pay the entire cost of the work up front; however, you can protect yourself by stipulating in the contract that final payment is not due until the work has been completed to your satisfaction. An alternate plan is to pay one third at contract signing, with the second third due upon completion of the work, and the final third due thirty days later. Keeping this payment plan in mind, the most efficient way to budget your window project is to allocate the funds evenly across each phase of the project. Assuming that half the project’s total cost is for labor and half for materials, paying for each at the same time that it is being done is the best way to ensure proper cash flow. This can be simplified even more by saving half of the total project cost to be paid out at the end of the project. At this point, funds from the current phase will be used to pay for that phase’s remaining costs, and savings will cover the difference between the total cost of the phase and the funds allocated to it. If you have money left over at the end of the project, remember that a few hundred dollars extra applied to the final phase can probably stretch your remaining materials and labor into another phase of work, free of charge!
4. Finding Transparent Pricing
Professional home remodeling companies are easy to identify through their online presence. Suppliers will have websites that are informational, well presented, and will have a bunch of features for buyers to read through. Here’s a quick breakdown of what to look for in each window supplier’s website that will save you time considering a potential supplier. A website with a question and answer section often signifies that the company is honest and transparent. Often times these sections are very direct and to the point, eliminating the need for you to contact the supplier for simple questions. This can be a real time saver and a good indication of transparent customer service. Another great feature to look out for is a real-time chat system. This shows that the company is in fact willing to take time to answer any questions you have and can sometimes lead to negotiation of better pricing just for asking. A well-written and updated products page is also a good indication that a supplier is organized and is doing well enough to constantly improve product availability. Websites with very few product offerings or websites that carry products that are from over 5 years ago could be an indication of financial trouble, poor service, or lack of confidence in the quality of the company’s products. You can eliminate small or contractor-based window suppliers and installers from the get-go, it is unlikely that they will have a very informative website or that their service will be worth comparing. Another way to look for a window contractor or installer is through an online yellow pages service, although the previously mentioned methods are generally more preferable as this more direct and may take some digging.
4.1. Researching Window Suppliers and Contractors
Check independent sites like Yelp, Angie’s List, or the BBB. The BBB is a great place to find any filed complaints and it rates businesses on a lower to higher letter grade scale. A company’s BBB accreditations are based on the business not only meeting BBB accreditation standards, but passing a comprehensive business review. Angie’s list reviews are written by paying members and the site does not allow companies to post or remove reviews. Yelp is another popular resource and employs customer reviews and ratings. Keep an eye out on all sites for consistent bad reviews or poor company ratings. This can create a clear impression of a company’s consistent work quality.
Be diligent at checking out each contractor or window supplier. Web searches and surfing on Google can open up a number of interesting information. Most company websites offer customer reviews, testimonials, and detailed company info including licenses, contact information, and a company history. Be suspicious if the company has little to no reviews, dubious company history, or unavailable or no contact information. These can be red flags and you would be better off skipping the company, no matter how flashy their website may be.
4.2. Requesting Detailed Quotes and Estimates
Once all of the quotes and estimates are in, review and compare the pricing from each supplier. Be cautious of extremely high or low estimates. High prices may be unjustified when compared to others and low prices may reflect low or incomplete service. Cross check pricing with the information you have gathered on product ratings and energy efficiency. This is the time to ask suppliers to adjust their price or explain a large discrepancy. Some suppliers will match prices of competitors in order to get your business. When price matches are offered make sure to get this change in writing on the estimate. With the right preparation and effort, you will be able to find a window supplier that offers the quality products you are looking for at a competitive price.
Window contractors and suppliers receive multiple requests for quotes and estimates every day. It is common for sales representatives to give a very rough quote on the spot, but a detailed estimate can take days to compile depending on the size of the project. The best way to receive a detailed quote or estimate is to have the sales representative come to your home. This way they can take all necessary measurements and assess the condition of your current windows. Walk the representative through each room/window and explain the reasons you want or need to replace each window. Discuss any customization you are considering and ask for product literature or technical specifications. Make sure to mention that you are gathering multiple quotes and you will be using them to make your final decision. Being up front about your intentions will encourage the sales representative to take the necessary time and effort to give you a competitive quote.
4.3. Comparing Pricing and Services
When comparing services, the first priority here is to ensure the same type of product is being compared with regards to quality. For example, if you are searching for an all-wood window, it will be to no benefit that you compare an all-wood window with a window that is a wood interior with aluminum clad on the exterior. It is also worthwhile to obtain detailed literature on the competitors’ products so you can do a comparison on your own time without a sales representative in your ear.
If you have already compared our quote with those of other reputable companies in the industry, then you have begun to realize this stage can be the most difficult. Many sales representatives do a fine job in creating a comparison against competing companies whether or not their information is accurate. In order to make an educated and knowledgeable comparison, it is absolutely necessary to obtain all the information on the competitor.
5. Negotiating and Finalizing the Deal
When you have gathered enough information to proceed with negotiations, but want to be more certain that you have valid expectations for the terms and conditions of the agreement before investing more time into the project, you may want to seek out a professional to review the plans and inspect the work site. At this point, you will provide these people with copies of the work specifications, the list of offers, and the inspection report from the work site. They will be able to give you reliable advice on the value of the offer and what you should expect to pay for the work. Be sure that the plans and information provided are as comprehensive as necessary for a suitable evaluation. If you have no plans to hire an agent, it is advisable that you let the contractor know that you have friends in the business who can assist you in understanding the details of the agreement. This may discourage the contractor from attempting any form of deceit. Be sure to keep any advice you receive confidential between the people giving the advice and limit the discussion to a simple evaluation of the expected value of the job. Usually, representatives can provide a good comparison between the expected value of the contract and the estimated cost from the offers. This is vital information for effective negotiation.
5.1. Tips for Effective Negotiation
In the contract stage of purchasing your replacement windows, timing is important. Most contractors have prepared pricing, but are willing to negotiate to win your project, especially during slow times. As a result, you may be able to get a good deal. Start by asking if the contractor is able to reduce the price. If the answer is no, ask if there are any services that can be omitted or any product downgrades that can be done to reduce the cost. If the answer is still no, ask if the contractor would be willing to do additional work (i.e. paint the replacement moldings or touch up interior walls around the windows) for the same price. Remember that the contractor will ultimately agree to a price that he is comfortable with. It is often heard of after a project is completed, the homeowner hears of how much money the contractor lost on the project. To avoid feelings of guilt, be reasonable and do not push too hard or you may find that the contractor becomes unwilling to go the extra mile to satisfy you as a customer. A dissatisfied contractor will unlikely go out of his way to ensure you are pleased with the project outcome and a tight profit margin will have him looking to complete the project as quickly as possible, cutting corners to save time.
5.2. Ensuring Transparency in the Contract
The contract is to include both the “Scope of the work” and the “Price and Payment schedule”. To enable effective comparing of estimates, a detailed description of work in the contract is to be made. This could simply be a list of tasks to be completed, material specifications, and any special requests. The price and payment schedule should be a reflection of the estimate given, providing the estimated cost for completion of each task and relating to the total price of the contract. This enables the consumer to match each point of the payment schedule to work completed. Any extra work or a changed order is to require an equivalent change to the contract in the form of a new task with a new price. This way the contract is a reflection of the job at all times.
One major problem consumers face is the inability to compare estimates effectively because most contractors do not give all details in their estimates to allow for comparison. Furthermore, some estimates, when converted to a contract, allow for changes and additions to the original work for an increased price. This brings us to the need of the homeowner asking for a detailed contract of the work to be done.
Frequent complaints of unfulfilled contracts and increasing litigation between homeowners and home improvement contractors point to the necessity of consumers understanding and documenting “the basics” of the contract. Escalating costs for home construction and remodeling projects are attributed to the lack of consumer knowledge and understanding of the construction contract. This is due to contractors charging more for the same work, using poor quality materials or taking shortcuts, all of which are usually not in the best interest of the homeowner.
5.3. Finalizing the Agreement and Payment Terms
The final step in formalizing the deal is to complete the contract and ensure that all payment terms are unmistakably stated. The agreement should specify the products to be installed, including brand and amount of coating, and should carry over the details from the original proposal. All changes and additions to the contract should be put in writing and initialed by both parties. The customer is generally asked to sign the contract and return it with a deposit ranging from 25% to 50% of the total price. Be cautious of the companies that ask for a small deposit. They may be more likely to take on bigger, more lucrative jobs throughout the course of your project and the delayed service may result in poor timeliness and performance. Companies requesting a large deposit may have financial stability issues and it would be unadvisable to pre-pay for products and services before they are installed. Finalizing the payment schedule is the most important phase of the contract. The contract should feature a complete payment schedule including specific dates and amounts, corresponding to the value of work or products delivered at a given time. The most secure payment schedule will be tied to the actual delivery of products and services. It is highly advised that you do not sign a contract with only a down payment and a balance due upon completion. This creates a strong incentive for the company to deliver the cheapest products and services, finishing with a product that is less than satisfactory. A payment schedule tied to the delivery of product and completion of service minimizes this risk. The final say on payment is that nothing is due until you are satisfied with the products and services delivered.
6. Monitoring and Controlling Costs
It is important to differentiate between an expense which causes a cost overrun and an expense which is simply a variation to the original contract, but will not affect the total cost of the project. High quality tracking of expenses will enable you to provide evidence to a client or main contractor as to the reason for a cost overrun and whether it might be recoverable at a later stage in the project. If an overrun is identified, a decision will need to be made as to whether it is offset by an equal reduction in other costs, or an increase in the project budget and crucially what effect this will have on the profitability of the window contract. An increase in project budget should be a last resort measure and will require an amendment to the contract.
Dealing with unexpected costs
There are numerous expenses involved in completing a window project, some of which are unexpected. By tracking all expenses in a detailed log, you will be better equipped to deal with unexpected costs and make adjustments throughout the project. Expenses generally fall into direct costs, those spent on materials and products, and indirect costs such as labor, supervision, and temporary facilities or equipment rental. Direct costs can be monitored by comparing the estimated cost of each item to the actual cost. Keep in mind that there is often a difference between the cost and the price of an item or service. Failing to include the price of an item which incurred a cost in the project budget is one of the most common budgeting errors. Indirect costs are usually more difficult to monitor and should be estimated on a cost per time basis. Comparing each type of cost to its budget will enable you to see where cost overruns are occurring. It is often useful to code different costs in a project to a budget in a way which helps to identify its major cost elements. This can be undertaken using a simple colour code or number code system on receipts and an analysis sheet showing the budget for each element.
6.1. Tracking Expenses Throughout the Project
Once you have begun tracking expenses, it will be easy to compare your actual expenses to the estimated costs outlined in the budget. Be diligent in making sure all expenses are correctly categorized. This will be helpful in assessing where money is being spent and change allotments of the budget if need be. If a purchase is made that was not planned in the budget, write a note about how this purchase affects the budget and whether the change was approved. A good habit to start is routinely going over project expenses. Set aside a time each week to sit down and examine your project finances. Check off expenses that are complete and verify that money is being spent as planned. This habit is very helpful in preventing small expenses from snowballing into large costs that were unplanned in budget. Adjusting the budget in reaction to the expenses is a normal part of the process, and changing financial allotments in the early stages will make it less likely the project will require alterations if unexpected costs occur.
The process of tracking expenses should start at the very beginning of the window project. It is much easier to accurately track expenses as they occur than to go back and try to remember where your money was spent at a later date. Start a file specifically for tracking expenses. Save all receipts, write detailed notes about each transaction and what it was for, and keep all papers together in the same place. Doing so will assure that any warranty information for product is not lost and can be referred back to if need be. Some people find it easier to track expenses using a computer spreadsheet program. If that is not your forte, a simple pen and paper journal can get the job done just as well.
6.2. Dealing with Unexpected Costs
A cost is unexpected if the project has to absorb it without, or before, spending plan provision. At the point when the cost is realized, the extent of the work influenced and the options accessible will decide if the task can be continued yet regularly the nature of the work is affected. Keeping an eye on progress already recorded in the work breakdown structure will help right off the bat recognizing those items that are probably going to experience either increments in cost or stretches extending. Fast consideration regarding such wrongdoers may permit restorative activity to be initiated. The monitoring of changes is a specific case of progress control and it is during the time spent controlling changes that the project spending plan might be protected. If cost increments have been perceived in some work packages however it is resolved to keep up the general project cost inside its unique total, it might be conceivable to redistribute the expanded expenses to other influenced work groups. It is when figures on the aggregates included are not, at this point vague that point by point adapt and keeping adjustment can be accomplished. Indeed, even in a circumstance where the general task financial plan isn’t to be surpassed, the capacity to understand that additional usage here might be balanced by a decrease on an option that is higher level work bundle is significant data.
6.3. Making Adjustments to Stay within Budget
When efforts to stick to the budget seem futile due to the wide array of custom options available, it’s necessary to start eliminating or reducing costs in order to stay within the budget. Since the original quote was for a specific dollar amount, the more effective strategy is adjustment of the specifications until the dollar amount in the quote is equal to the desired expenditure. In most cases, decreasing the quantity of product is a short-sighted solution. For example, reducing the number of windows to be done now only increases the cost later as inflation in the building industry generally surpasses bank interest. Similarly, reducing the level of quality on certain products may seem helpful, but later result in higher costs due to repair and/or replacement. Therefore, the best solution is to find like products that are less expensive. An example of this might be using an alternative type of wood that is cheaper and more common. We are selling you our quality with the expectation of a fair price. Since you are expecting quality, the only savings option is to find equal products for a lesser price. Any other method of decreasing the cost will likely result in a reduction of the value our company is providing for you. This would be a lose-lose situation as the value to you is decreased and the cost to you is increased. Any time you are considering a cost-saving solution, please consult your salesperson to ensure you are making a decision that will best suit your needs. In doing so, as well as following the strategies listed below, you will be able to make well-informed decisions that result in both parties feeling good about the transaction.
