You went out and got several bids from different companies. Good job! But the prices don’t completely match up, and you don’t know which one is the best choice for your needs.
Now what?
Take a deep breath. We’ve put together this guide to help you learn how to fairly compare quotes so you get the best bang for your buck. Let’s get started below!
How to Compare Quotes
When you compare quotes, you need to look at more than just the overall cost. There is no industry standard that every company has to follow when putting a bid together, so they will all look a little different. To understand what you would be spending and why, you should look through elements.
Let’s use contractors, for example.
When you get an estimate from a contractor (like the ones at https://5estimates.com/), they’ll be made up of the following things:
- Labor
- Cost of material
- Cost of different work categories
- Profit margin
- Etc.
If a contractor charges more for their materials than their competitors, they might have higher quality products. If they have a lower labor rate than others, they might have their rates set to reflect a different city’s averages.
Seeing this breakdown will help you make a more educated decision about which contractor best fits your budget.
Don’t Just Look at the Dollar Sign
You should never base your entire hiring decision on the money alone. Instead, spend some time researching the companies in your area to ensure you’re getting a reputable, high-quality service provider.
Some of the things you should consider include:
- Experience level (how many years have they been in the business?)
- Licensing and insurance (can they provide proof of these things?)
- Reviews from a third-party website (are they mostly positive or negative?)
- Timeframe (will they be able to finish the project/complete the service within your schedule?)
- Etc.
You should never hire someone that doesn’t have the proper licensing and insurance. Otherwise, if something goes wrong during the job, you might be liable to cover all the damages yourself.
It’s a good idea to look up the company on The Better Business Bureau first to make sure they are a legit and trustworthy business.
The Cheapest Quote Isn’t Always Best
It’s never a good idea to pick the cheapest quote simply because it’s the cheapest.
Remember, price tends to reflect quality. If you pick the cheapest quote, you might not be saving yourself any money in the long run. The company you hire might not do a good enough job on their work, meaning it won’t last as long as expected or you’ll have to hire someone else, in the end, to come in and fix their mistakes.
This doesn’t mean you can never hire the cheapest company, but you should always do your research first.
Finding the Right Quote Every Time
Whether you need to compare auto quotes or compare home insurance quotes, these tips will help you pick the right company for the job. As you compare quotes for your next project, don’t forget to take your time and look at the details. Otherwise, you might be caught by some unpleasant surprises later!
Want to learn some other helpful finance tips? Make sure you take a look at the rest of our blog today!
