Riddle: How Can His Prices Possibly Be That Low?!?
[Editor’s Note: For obvious reasons, no names or other identifying info on this post. However, I heard the following anecdote from an “extremely reliable source” (as they say), and believe it to be true.]
So, how does one very cost-competitive Twin Cities builder deliver such eye-popping prices?
By “exploiting” (I had another word in mind) his subcontractors.
How to, ahem, “Take Advantage” of Contractors
According to a client who heard the builder’s boast firsthand, here’s how he gets $20,000 of electrical work for $12,000:
The builder will drag his feet paying the electrician, then — at the last possible moment, when the home is about to close — offer to settle up for 50¢ on the $1, in this case $10,000.
When the justifiably furious contractor rejects that offer, the builder’s response is, “fine, sue me.”
After several hours (days?) of heated argument(s), threats, counter-threats, etc., the still-furious electrician decides to cut his losses and accept $12,000.
Net “savings” realized by builder: 40%.
Multiply that by 8-10 subcontractors, and pretty soon you’re talking about real money (I mean, “savings”).
Playing with Fire
Should you hire such a builder?
I wouldn’t recommend it, for LOTS of reasons.
I equate it to having a firearm in the house: the odds of it harming you or a family member are a lot higher than the odds that it will help you thwart an intruder.
Ditto for getting bit by such an unscrupulous operator (vs. benefiting from his shameful tactics).