Five Hidden Costs That Nine out of Ten Customers Don't Know About

Nine out of 10 customers ignore hidden costs such as labor rate fluctuations, material waste, and post-sales maintenance when consulting on pricing.We reveal five common but often overlooked pitfalls that can cause you to exceed your budget.From construction details to contract clauses, this book will teach you how to precisely control your overall renovation costs.

Why is your final price always higher than your estimate?

Many people feel that the prices quoted at the time of signing the contract are quite reasonable, but when they add up the bill after the work is finished, they find that they have ended up spending much more than they thought.The problem is that some of the costs are "hidden" --not written in plain sight, or glossed over with ambiguous language.Today we'll take a closer look at how this money is "stolen.

The tricks of the trade.

The master's "experience premium.

Don't think that all the prices quoted by the masters are the same! For example, a beginner might quote NT $ 50 per square meter for tiling, but a master might dare to ask for NT $ 80.The key is that they won't tell you how much the difference in skill is worth, so you end up choosing a low-cost team that ends up costing you more in the end.

The cost of labor for unexpected work.

Changing a socket position or adjusting the height of the ceiling are simple tasks, but they are not included in the original contract price. The contractor will charge a premium of more than 30 % for these "extra" jobs.The worst thing is that some workers deliberately leave out important steps, and then jack up the price when you ask them to come back and fix what they left out.

The truth about material waste.

For main materials like tiles and floorboards, the 5 % loss rate that dealers talk about sounds reasonable. But in practice, if you have a wall that's not square or you've got a workman who isn't very skilled, the loss rate can shoot up to 15 %.Even worse, some foremen would take away materials they had bought in excess, so you wouldn't even notice.

The hidden consumption of auxiliary materials.

Adhesives, plaster, and waterproofing paint--these unglamorous auxiliary materials are often listed in a bill of materials as "to be charged according to actual usage.When the time comes to start work, they'll say that they need more materials than you originally estimated. You have no choice but to pay up.

transportation, and garbage collection.

The fee for getting the goods upstairs may be even higher than the shipping cost.

Especially in older buildings without elevators, large materials must be carried up floor by floor.The estimate lists a material transport fee of NT $ 500, which sounds reasonable, but then when you get to the site they say you have to add another NT $ 800 for carrying things upstairs.

Don't throw away your building waste.

Many landlords have a contract with a particular company, and charge NT $ 300 for a load of trash, when the market price is only NT $ 150.Even worse is not asking in advance about the costs of clearing the site.

A long-term pitfall.

A warranty is not the same as free service.

The contract stipulates that water and electricity will be covered for five years, so you feel quite secure. But if there really is a problem, the workers who come to check it out will charge you NT $ 200 for the service call, and you have to pay extra for any replacement parts.Some companies even expand the definition of human damage to include a wide range of things, so that you end up paying out of your own pocket.

Cost of replacement parts.

When you buy a custom-made cabinet, the manufacturer will warranty the hinges and the tracks, but if they break, he won't replace them.If a problem arises after a year or two, they'll charge you NT $ 80 for an imported hinge--twice the market price.

How can you avoid these pitfalls?

1. Before signing a contract, have the general contractor take you to the site to measure the amount of waste.

2. The contract clearly stipulates that the total cost will not exceed 5 % of the original price.

3. Ask for a list of all auxiliary materials used, and their unit prices.

4. Confirm with the property management company in advance what the charges will be for the removal of waste.

5. The warranty should be specific, stating that the company will pay for both labor and materials.

Keeping a close eye on these details can save you at least 20 % of your budget.The next time someone offers you a price, remember to pull this list out and ask them to explain the details. I guarantee they won't dare to try to fool you!