How to negotiate the best rates with contractors so that they’re happy and you get the BEST work from them…

How do you negotiate the best rates with the contractors you might want to work within your agency?

Over the years, I’ve worked with a LOT of contractors, from design to programming to sales and everything in between.

I’ve learned a ton about how to get the best rates from them without beating them down. When I hire someone to work with me, I want them to be excited about it and deliver great work! Not be feeling like they got the short end of the stick.

Let me give you an example.

After I bought my first house, I wanted to make some improvements to the yard. One of those projects was to build a 30 ft retaining wall in my backyard. It was a short little thing to separate two different yard areas.

I had a guy come out to give me a quote. I was SHOCKED when it came in at $15K.

I thought what I was asking for was no big deal. I was planning to use those $1.00 gray cinder blocks from Home Depot and only go 1 to 2 bricks high.

Since I didn’t have that much money to spend on the project (and no skills to do it myself), I got resourceful in the only way I knew how.

Here’s what I did:

I drew up a map showing exactly where the wall would go. I bought a few bricks, dug a small footing, and stacked them up so I could take a few photos of what it should look like. I then wrote up a complete description of what I wanted and posted it on craigslist with these instructions:

“Please review my plans for my wall and submit your quote along with a short description of how you’ll approach this project. If you’re selected, I’ll invite you over to take a look in person, and if I’ve misrepresented anything, you are welcome to revise your quote.”

I got a ton of responses. I invited one guy over who had a good write-up and quoted $1,500 for the project, including materials. WOW, what a difference!

He ended up doing the job for me, and the wall got built exactly how I wanted.

Now, how was I able to save $13,500? Because I was specific and broke down this big job into its components. I could attract a contractor that didn’t have to worry about me being a difficult client that wasn’t clear about what I wanted.

Think of it this way. Not only did the first company I spoke to quote 10X the price and have a lot more overhead because they were a more established company, but they had to plan for me as the client to be indecisive or unclear about what I wanted finished product to be. They needed to plan for me to change my mind and want the wall higher or done differently.

There is a HUGE cost associated with having no plan and being unspecific. There’s wasted time in communication, labor, and materials.

So, how does this apply to your agency?

I took this lesson and created what I like to refer to as “agency recipes,” where I designed all the components and steps associated with how I wanted to deliver my services. I found contractors willing to execute on one or more of these components.

They were willing to provide me with the best rate when I gave them clear directions and expectations.

The bottom line is this:  If you’re working with contractors and they’re taking the lion’s share of the money from the projects you’re selling, you’re doing it wrong.

Break down the project into its components. Be specific and negotiate better deals for yourself.
If you want to know more about my agency recipes, I have a video training clip you might be interested in checking out. Drop me a message on FB, mention “agency recipes,” and I’ll get you the link.