ᐅ Negotiating with Contractors – Getting Market-Style Price Advantages?
Created on: 17 Apr 2020 10:37
A
annab377
Hello everyone,
I wanted to ask how you approached negotiating or trying to get better prices with the various trades and contractors involved in building a house—from A to Z (that is, from structural work to plumbing, plastering, and even photovoltaic systems).
Some people consider haggling or bargaining to be inappropriate or rude towards the tradespeople or the companies involved. How is this usually handled in Germany when building a single-family home?
Do contractors or companies (for example, electricians or plumbers) typically include a small markup in their price that they are willing to lower if the customer asks for a better deal? If the customer doesn’t negotiate, they are happy with the price, but they still want to make a profit, of course.
Some might say, “We’re not at a market bazaar here.” Is it generally seen as disrespectful in Germany to try to shave a few percent off the price, or is this a common and accepted practice in the single-family home construction industry?
I’d love to hear about your experiences. I don’t want to come across as difficult to local companies since negotiating in the single-family home building sector might have a bad reputation.
Best regards
annab377
I wanted to ask how you approached negotiating or trying to get better prices with the various trades and contractors involved in building a house—from A to Z (that is, from structural work to plumbing, plastering, and even photovoltaic systems).
Some people consider haggling or bargaining to be inappropriate or rude towards the tradespeople or the companies involved. How is this usually handled in Germany when building a single-family home?
Do contractors or companies (for example, electricians or plumbers) typically include a small markup in their price that they are willing to lower if the customer asks for a better deal? If the customer doesn’t negotiate, they are happy with the price, but they still want to make a profit, of course.
Some might say, “We’re not at a market bazaar here.” Is it generally seen as disrespectful in Germany to try to shave a few percent off the price, or is this a common and accepted practice in the single-family home construction industry?
I’d love to hear about your experiences. I don’t want to come across as difficult to local companies since negotiating in the single-family home building sector might have a bad reputation.
Best regards
annab377
Difficult to answer, as the wording already has a somewhat negative connotation.
In our case, the architect always talked about discounts and cash discounts. This worked in about 80% of cases, typically between 3 - 6%. In the other cases where it didn’t apply, it was usually because the tradespeople offered lump sum prices instead. That was fine as well.
In a tender process, I think it’s quite fair for the architect to give the tradespeople a chance to improve their offers after the initial bids and price comparison. However, trying three times to squeeze out an extra 1% or negotiating further afterward feels like haggling, which I don’t like.
In our case, the architect always talked about discounts and cash discounts. This worked in about 80% of cases, typically between 3 - 6%. In the other cases where it didn’t apply, it was usually because the tradespeople offered lump sum prices instead. That was fine as well.
In a tender process, I think it’s quite fair for the architect to give the tradespeople a chance to improve their offers after the initial bids and price comparison. However, trying three times to squeeze out an extra 1% or negotiating further afterward feels like haggling, which I don’t like.
First of all: Builders should understand that it is not a craftsman’s job to deliver their service at a lower price to compensate for the cost of a special request elsewhere. Applying brick veneer costs money; tilers and window installers cannot make up for that loss.
I recommend the usual procedure in the construction industry (not only for single-family homes), which is to hold a tender instead of "negotiating."
This opportunity is silently expected by many suppliers. Therefore, I always mention in my inquiries that I only ask once for the price—but this only works if, on the other hand, a fair rather than a “dumping” price is expected.
A sensible bidder first assesses the customer. With a part-timer cowboy, they’ll build in a discount right away; with a teacher, they factor in that small defects will only be reported after scaffolding removal—and that this is a tactic to mask their eagerness for discounts. And someone foolish who thinks they’re cunning must expect that the professional is much more experienced and skilled than they are themselves.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
annab377 schrieb:
I just wanted to ask how you handled negotiating or pressing for lower prices with the different trades/craftsmen. [...] I don’t want to make a bad impression on local companies, because negotiating hard is really frowned upon in the single-family house construction industry.
I recommend the usual procedure in the construction industry (not only for single-family homes), which is to hold a tender instead of "negotiating."
face26 schrieb:
In a tender process, I actually find it almost fair if the architect gives the craftsmen a chance to improve their offers after the initial bids and price comparison.
This opportunity is silently expected by many suppliers. Therefore, I always mention in my inquiries that I only ask once for the price—but this only works if, on the other hand, a fair rather than a “dumping” price is expected.
Libero5 schrieb:
A reasonable company has already calculated every discount they grant into their pricing anyway.
A sensible bidder first assesses the customer. With a part-timer cowboy, they’ll build in a discount right away; with a teacher, they factor in that small defects will only be reported after scaffolding removal—and that this is a tactic to mask their eagerness for discounts. And someone foolish who thinks they’re cunning must expect that the professional is much more experienced and skilled than they are themselves.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Except for discounts on almost all trades (which in total really adds up), we didn’t negotiate ourselves — our construction supervisor handled that, as he has known the companies for a long time. I’m not sure to what extent this was already included in the pricing beforehand.
However, the price generally felt fair, so everything was fine.
Apart from that, I hate negotiating because I’m not good at it. I already struggle with it at flea markets and usually avoid going there because of that.
However, the price generally felt fair, so everything was fine.
Apart from that, I hate negotiating because I’m not good at it. I already struggle with it at flea markets and usually avoid going there because of that.
E
eigenheim-nrw20 Apr 2020 15:52I also find negotiating quite exhausting; after all, in Germany people aren’t really used to the typical “haggling” mentality. It definitely helps to obtain several quotes beforehand (which include the same services) and mention them during the conversation if needed. Sometimes you can still get a better deal, but in the end, it’s up to you whether to accept the offer or not.
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