The Cost Of Goods Is Going Up. What That Means For Home Improvement Projects
We have all seen the news reports, and if you don’t have cable you have felt it at the checkout line – Everything seems to be costing a little more. One of the most affected industries is construction. Steel, diesel, and lumber have all skyrocketed in price the last 3-6 months and it has shown no signs of slowing down. So today, we are going to take a completely apolitical approach and discuss how these prices will affect customers looking to hire a home improvement, concrete leveling, or foundation repair company like Liftech.
According to a report released by Bank of America, the increased costs of lumber alone have added 34% to the cost of a new house. That is no small feat to overcome. Especially considering the time it takes to build a home, and the rapid increase in lumber prices, the market is seeing contractors have to go back to customers that are already building and increase costs. There is just no way for contractors to absorb this large of a cost increase. This is very frustrating for expecting homeowners and contractors trying to provide the best customer service. Over the last 5 years leading up to this, Liftech would honor concrete leveling and foundation repair quotes up to 1-2 years old, sometimes even longer. Prices generally increase but at a slow enough rate that Liftech could honor those quotes to keep the customers happy.
Recently, Liftech had to change all their quotes to only be valid for 30 days and even reserve the right to be changed within that period if we get hit with a sudden price increase in inputs like steel. Liftech or any other professional contractor does not revel in putting customers in this position, but small businesses just can’t incur massive losses due to sudden price increases without at least attempting to split that with the customer, or next year there won’t be any good contractors left to do any repairs at all.
So what does that mean for customers? What are some good pieces of advice on navigating home improvement during these crazy times? Here at Liftech, we have put together a few words of advice to help customers not just looking for concrete leveling or foundation repair, but any home improvement service.
Tips For Home Improvement Projects in 2021
Be Ready to Make the Decision Hastily
If you are looking at getting a repair done, set a firm timeline of 2 or 3 weeks to make a decision after receiving quotes. This will ensure that prices you receive will still be able to be honored and you don’t get ready or excited for a repair only to call the company 6 weeks later and the price has gone up 20%.
Choose a Company With Reasonable Lead Times
Sourcing material in a reasonable time frame is also becoming increasingly difficult. Well-organized contractors, like Liftech (we think so!), have spent a large amount of time forecasting, organizing their supply chain, and managing their operational capacity. Liftech is also one of the largest purchasers of Polyurethane in Colorado, so we get first dibs when it comes to a chemical that is incredibly difficult to source today. What that means is when you agree to a concrete leveling repair with Liftech, you will have your repair done within 3 weeks – with almost guarantees you will not get hit from a cost increase because we keep at least 1 month supply on hand anyway. If you are getting quotes on any home improvement project and they say they cant get to it for 6+ weeks, or “a month or two” make sure to ask about potential price increases and why they aren’t able to offer a more accurate timeline. Long timelines exponentially increase the risk of having a sudden price increase even if you already have agreed to the project.
Ask Upfront About Price Changes
Don’t be afraid to ask your contractor if they’ve experienced price swings or had to raise prices on customers. Professional contractors should have no hesitancy explaining the reality of the situation, they know it isn’t their fault. If some contractors are just trying to seal the deal they may wash over it, but we all know the reality of the situation and it’s important to find a contractor that is honest about it.
Understand What Inputs are in Your Project
Lumber and steel are two examples of inputs that have risen 50%+ each. Before starting a project, think about all of the inputs that go into it, where they originate from, and if they have spiked in price. This will at least prepare you for what you are getting into, and potentially help you prioritize one project over another. For example, Liftech’s new concrete prices have not seen near the spike as lumber. So instead of a new wooden deck, you may choose a concrete patio in its place.
In Summary
We don’t know when the prices will stabilize, or what the right solution is. We do know it has been a frustrating experience for both contractors and customers, and the more we do know to work together, the better we can get through it. We hope these tips helped you, and if they did feel free to follow our blog for more information!
