I think that depends on where you live. I have a contractor friend who told me that all sorts of tradespeople are migrating from areas of Michigan, where work it slow, to his area (Greenwich, CT) because it's still booming. I think that the best, most in-demand people will probably not come down in their prices, but many regular, average companies have had to. I got a very fair quote to redo 2 hall baths in my home. But I also got 2 other quotes that were pretty high, so I'm glad I shopped around.

Jenna

I would think the credit crunch and loss of people's savings would force a change.

You're so so right. Today's economy makes it OHH so much easier for me to give people a much bigger break in price!! I mean, hell, I don't need the money!! I can live off the millions I've burned people out of for the last few years!

Now to get away from the sarcasm. In fact, I've had to absorb a 3% energy surcharge that my suppliers charge me on all sales. Kinda like now, instead of paying 5% sales tax, I'm paying 8%. Additionally, I have to pay the very exact same increases in gas that you do, only I don't have the luxury of driving a fuel efficient vehicle, not if I'm going to haul a few thousand pounds of tile and materials to your house, and then haul the garbage away afterward. Also, all MY costs of living have gone up considerably over the last few years, just like everyone else, and in all that, I've raised my base price a measly 25 cents a foot, in the last SIX years!! That's a 5% increase in my base price, during a time when my expenses have gone up closer to about TWENTY percent.

And you want me to DROP my prices???????

Not in THIS lifetime.

Bill -

Not sure what area of the country you're living in, and no one would dispute anybody earning a fair living. But the days of people using their homes as ATM's are *over*

I don't think that you would disagree that some homeowners went a bit overboard in the past few years, and probably overimproved....and just handed over a blank check to the contractor. Shame on them for not doing their homework.

There was a time when you couldn't get a contractor to call you back. Now, some are really hurting for work....

Bill...from one self employed contractor to another...THANK YOU!

You guys are crazy thinking a lower price will get you quality work. The price never changes for good contractors as there is a set amount that has to be charged to stay in business recession or not.
The worst home disasters are from guys who give a lowball price and then hurry the job to get out of there cause they are not making any money.

Interesting read here. Within the last 2 weeks we finished up a master bath remodel. I had the tile guy come by yesterday because about 6 inches of grout was looking "funny." He came by and fixed it, apologized that he hadn't seen it! Anyway, I asked if he still had work, etc. He said he was busier than ever - and could have all the work he wanted! I asked why he thought that with the economic times we are having and he said people are staying in the homes they have but fixing them up with very nice upgrades. Of course that was his opinion. But then again that is exactly what we've done. Two years ago all the flooring, last year the kitchen and this year the master bath. Heck, I've got a new home!!! And didn't even have to pack a thing!

I think the most likely impact is that the wait for most contractors won't be as long and more of them will call you back and show interest in bidding on your job. The contractor who just built the shell on a sunroom addition for us (we're finishing the inside) usually builds houses, but things have gotten slower, so he's branched out more into smaller jobs (roofs, remodels, concrete work) to keep his crews busy.

I wouldn't expect prices to drop significantly, unless you're in an area where profits were rapacious (I recall someone relating a conversation with a contractor friend in California who said when bidding he thought of the highest price he thought they'd pay and then double it). Other than that, smart contractors aren't going to bid at less than cost.

That said, our contractor did say he was surprised that the masonry subcontractor's bid came in as low as it did, and said "business must be really slow." So that seems to indicate that some prices have dropped.

The prices are not dropping in my area but it is easier to get on the calendars of the great contractors than before when the business was booming. If anything the prices are going up because, like Bill pointed out, the costs of running a business are going thru the roof. Everyone who is working on our apt is complaining about their margins getting thinner and thinner.

There is so much waste of materials in construction which explains overpricing of jobs. The other problem is math. Calculating how much material and supplies will be used. Most contractors are used to commercial jobs where no one questions their spending habits.

Contractors think homeowners have unlmited money to spend on renovations

Prices by me have dropped and have become consistent. You do not see the wide flucuations in pricing so you at least have competitive bidding working properly. Pencils have been sharpened. By me the workload has dropped so you do not see contractors gaming the bidding process. There is definitely a time lag too, I would expect in the next month or two some real changes will be felt as people feel the pinch. Many are in denial, but as they realize their retirement funds lost 30%, they will need to clamp down on spending if they are close to retirement.

I've noticed the same thing - especially over the past year or so. Years ago we started DIYing almost all of our projects because a) we couldn't get anyone to show up even to give us a quote, b) if they did show up we couldn't afford them, and c) if we could afford them we regretted hiring them later.

Lately we've been able to hire people for far less than we anticipated and they've all done an exceptional job. In fact, I've paid the last 2 guys more than they asked for because I felt kind of guilty.

Contractors think homeowners have unlmited money to spend on renovations

You think so? Would you rather try and cut materials right to the point, and end up falling short, and then have delays because you have to wait the lead time all over again for the "extra" materials to come in? Which also throws a monkey wrench in MY schedule, and will end up costing YOU more, because now I have to make extra trips to your house, and as I already said, screw up MY schedule, just because you want to save a buck. You can BET I'll charge you for it, too.

I just had a job like that a couple of weeks ago. It was almost 4 hours from home, and trying to get it finished so I could stay within my time constraints, we fell TWO TILES SHORT, at 9 pm, the night before I was supposed to finish. All the tiles had to be set, so they could all be grouted the following day, and we ran two tiles short. Thank God, the husband was able to chase them down the following morning. If I'd had to come back down there, you could bet those two tiles would've cost them dearly.

I agree with weedyacres comment:

"I wouldn't expect prices to drop significantly, unless you're in an area where profits were rapacious (I recall someone relating a conversation with a contractor friend in California who said when bidding he thought of the highest price he thought they'd pay and then double it).

I think the contractors who have over-inflated their prices in the past are now faced with having to get back to reality and be somewhat comparable to others in the same trade, as I think nowadays most people are getting competitive bids.

As for the contractors who have kept their pricing fair during the "good years" I don't believe they are dropping their prices. JMHO.

Bill - THANK YOU THANK YOU!!! On behalf of my husband, you said a mouth full, baby cakes! He was beyond thrilled this summer to get a large job a mere 2 blocks from our house - he drove all the tools and materials there then took his bike to work each day (sometimes with a ladder on his shoulder - quite a picture!) and not buying gas from June to Sept was a lifesaver for us. The scope of his work changes when the economy slows. He does fewer over the top kitchens and baths, more repairs and small projects as people maintain their biggest investment, but the work continues.

To the OP - I'm sorry you've had bad experiences in the past and feel ripped off. There are certainly bad apples in any trade but there are an equal number of homeowners who don't practice due diligence in their hiring and are guilty of focusing only on the bottom line. If a pencil is sharpened a lot more than anyone elses, there's a reason. You're either going to see it in quality of materials or quality of labor - or both. Not saying that's necessarily what you did, but it does happen. My husband makes a good chunk of his living fixing the unbelievably bad work of others. Guess I should be thankful for those bad apples and the homeowners who hire them - it puts food on our table and pays college tuition!

Check out my local Home Depot, not many customers. And some have even closed.

And the illegals have generally left town, probably gone back home?

Yes, things are slow and prices dropped significantly. I am sure this will be similar across the entire nation at some point, yes, very sad. Most have been overextended. They now need to focus on saving. My neighbor spent $80K on a kitchen, and now says he cannot afford to send his kid to college, well, shame on him.

I will not be spending a cent on my home anymore. Pure maintenance yes, and that is it. Time for me to put my head on straight, save, and stay away from the Home Depot money pit. We should all have learned a lesson. I will be sticking with my 1960's kitchen and bathroom.

I'm with mowers. Frankly anyone who is considering any kind of unnecessary home improvement project these days may want to educate themselves on the state of the Global economy...

And for those obviously biased posters who felt the need to be obnoxious, rude and defensive when the OP had a very valid question... I hope you have saved a lot over the last 10 years because the real estate and home improvement industry will be the first to come to a grinding halt. You can charge whatever the heck you want, but there will be no customers to pay it. Put your head back in the sand and I'm sure it will all turn around, what do all the economists in the world know anyway...

And for those obviously biased posters who felt the need to be obnoxious, rude and defensive when the OP had a very valid question

It wasn't the valid question that got me going. It was the obnoxious rude and ignorant statement that was made afterward. Kinda like yours. It's funny how during the time when you want to get things done, people come to contractors to do it, but then begrudge them the money to pay them for their hard spent time. Along those same lines, there are those of us who come in here to give freely of our time to help those who need it, and when you need questions answered, well then, we're "the best"! "The greatest!" Obviously very nice people! Now that you suddenly decide you don't want to do any more work, we're not even worth as much as the scum on the sole of your shoes. What a piece of work you are.

And just for the record, it WILL all turn around, sooner or later. The sky really isn't falling. I promise.

I agree with Bill. I've been alive long enough to see the economy take major swings. It will come up again and it will drop again. Sooner or later. I just wish I knew when the upswing is coming. I have been lurking here getting tips for my soon to start bathroom reno. Now I think I should put it on hold.

I'd rather not do it at all than do a cheapie compromise job.

My son is a contractor in CA and is still quite busy. If contractors do lower prices, the difference will be eaten up in rising material costs. Has anyone checked the price of a copper pipe recently?

I think too many people got too excessive. Throwing out perfectly fine tube TVs for the latest trendy flat screens. Gutting a 10 year old kitchen or bathroom in perfectly fine condition to have the latest granite and stainless kitchen showpiece. God forbid they have formica countertops. Or throwing out a 5 year old washer and drying because they had to have the glacier blue LG front loading set. I know people that spent 20K to get fancy cabinets in their garage. The statistics show most have no savings and spend as much or more then they are taking in. This is scary. I worry because I am a saver and will probably be taxed at some point to bail out the reckless spenders. I personally feel some gratification that these reckless spenders are losing their homes or cannot send their kids to college. Good riddens on them. They need to learn their lesson now before it impacts me. This downturn needed to happen.

On a related thought, does anyone ever go to their doctor and try to get a cheaper price? Or hope that the can of pepsi at 7-11 might be cheaper if they reduce wages because of the downturn?

It is funny how people think contractors can just chop their price because it is slowing down.

It's because they think they're paying way too much to begin with. In some cases, they are. But with most conscientious contractors, they're not, even though those same conscientious contractors might cost more.

My point was just that. In my area contractor prices were artifically inflated. As the boom occurred they got too busy and were able to go on a bid and throw out crazy prices knowing the customer was desperate to get someone to do the work because no one returned their calls. And if they did not get the job, they did not care, and if they got the job, it was a windfall profit. And then many hired illegals from Mexico further adding to their profit. Funny, my re-roofing estimate from 4 contractors 3 years ago was $8000, $9600, $11,000, and $8,400. For a tiny cape cod house. I could not afford that cost at the time. Now, 3 new estimates I have from 3 weeks ago are $4,100, $4,300, and $4,550. And 2 of the 3 contractors are the same that bid on it last time. This was my point. It seems like some reality has finally come to the marketplace. At least the estimates are now in the same ballpark so it shows things are at least competitive.

Couple more points, first is that i can't imagine any roof being in that price range with any kind of tear off and replace. Cost of roofing material alone has gone up at least 20% in the last three years so something has to give. Be careful because they will be taking shortcuts to make some money.
The contractors are in a race to the bottom to see who can go broke fastest, i doubt they are paying compensation or insurance etc.

Having said all that take the price while you can, roofing is not like a remodel or addition or a bathroom gut and replace they are fairly easy to do but you should read up and watch them closely especially given that they are doing it for a fire sale price.

I'm going to contradict the advice given by westcoast. The VERY LAST thing you want to do is take low prices. If the price is low, it's low for a reason-- like the guy's having a hard time finding work. Anyone who does quality work and charges a fair price will STILL be charging that fair price now, and won't be having any problems finding work. It might be slower than it has been over the last 5 years or so, but using myself as an example, there are ALOT of tile guys out of work in my area. Just in the last week, I know of four who've come to the showroom where I get alot of my work. EVERY ONE of them, with out fail, has offered to cut my price by ATLEAST 2.00 a square foot. Considering the fact that most of the homes I do START at about 600 feet, that's a considerable savings.... IF we are talking apples to apples. They're still sitting home watching Oprah every day while I'm working.

The best advice is now, just as it's always been-- get atleast 3- 4 estimates. That way you can see who's close, and who's running off from the pack, either low or high. Either way, I'd stay away from them, unless they can show with good reason why their prices are so different from the rest.

Contractor prices not dropping? I do not believe that for one second. We are in a recession and had another record wall street loss today. Most have lost 60% in their funds and many are foreclosing on homes. In my area, contractors are not working. The silver lining, the mexicans will hopefully leave.

I've said the same thing all along, but about fly by night contractors, rather than Mexicans. I don't care WHERE they're from. If they can't do the work properly, these timees will "cut them from the herd". The one thing these times WILL do is slow work down enough where GOOD contractors with solid reputations will be able to take on all those who request them, so that people won't have to settle for whoever they can get.

How can we as a nation not care where they are from. It is NOT in our best interest to have illegals reaping the hard earned benefits from taxpayers when they are not taxpayers themselves. They have burdened the schools, hospitals, and prison system. They are getting scholarships before our own citizens. I hope they all go packing. But unfortunately, this nation has too many liberals that like open borders. We need more integrity characteristic of our nations "greatest generation" who would not tolerate this attack on our nation.

Yes, of course they are dropping, and lead times are shortening. But certainly there are talented people worthy of what they charge. I think it is important to keep in mind that materials & energy costs are increasing for contractors, so seeing a simultaneous revenue decrease can be painful. But it is simply supply & demand, and demand is dropping fast. Anecdotally, my architect said she has been working on 7 projects, and just this week 4 of them were put on hold or cancelled. This is all fairly recent, so it may not be as obvious to workers who are in the middle of pre-booked projects, but there will clearly be far fewer projects going forward.

I don't necessarily think it has been unethical for contractors to have enjoyed large profits in the recent building boom. It is simply a matter of market forces (sure, there may have been people taking advantage of the situation and doing shoddy work, but hopefully this isn't the rule). But I just hope they saved up some of those unusually large profits to get them through a time of much leaner profits.

Personally, I disagree with unilateral statements about not taking the lowest bid. I've done 4 reasonably large renovation projects, and I've until now used a higher or middle bidder. On my recent master bed/bath project, i went with an amazing man who came in at only half of what my prior contractor bid. I loved my old contractor, and had intended to go with him if he was not more than 15% over the other 2 bids. But this was a huge difference! My new current contractor is so incredibly skilled and doing a wonderful job. I realize that much of the difference in cost is their infrastructure. The higher bidder has a really nice office building, a personal secretary, a small fleet of the newest and best trucks, and drives the biggest Lexus I've ever seen. The current contractor is far more modest, and if you look at his used truck in certain lights, you can see a hint of sheen that says "Rainbow Rentals" from the prior owner. No secretary and fancy office. No large staff of workers who he charges out at $75 per hour, to ensure his profits support his infrastructure. Now I wouldn't say the old guy was unethical, he was just covering his costs and in a boom time he allowed them to grow very high. But I'm absolutely impressed with my low-ball contractor; his work is at least as good. So remember to give the little guy some opportunities! Many are very talented, and their low bids may simply reflect their lower infrastructure costs and more modest expectations of a reasonable earning potential.

good luck to everyone in this tough economy!

How can we as a nation not care where they are from. It is NOT in our best interest to have illegals reaping the hard earned benefits from taxpayers when they are not taxpayers themselves.

This thread should actually be in the Hot Topics forum, but here goes. I don't give a DAMN if they have Spanish accents, French (-Canadian) accents, or NO ACCENTS AT ALL. If they come in and start doing slip-shod work, screwing people over for the almighty buck, then I'm on their a$$. You're right about it not being in our best interests to have illegals taking our work. The problem is there are plenty of homegrown morons to go around, and THEY need to be dealt with as well.

Also, Mexicans aren't the only illegals in this country. HISPANICS aren't the only illegals in this country. You might need to broaden your view a little bit.

In the end, its always about supply, demand and negotiation. There will always be people who want quality work at a fair price. There are those willing to pay more for quality. There are others that want cheap prices and could care less about quality (within limits, usually but not always). There are still other people who don't know what a fair price is or what quality consists of, and others willing to take advantage of those folks. A contractor's time is revenue stream. This is basic economics 101 -- what will the market bear? Some contractors take a simple "strike while the iron is hot" approach and raise prices when demand is high, lower prices when demand decreases. That approach tends to attract the fly-by-nighters when demand is high and shake them out when demand shrinks. Others, like Bill, take a more long-term view factoring in reputational risk of such an approach and keep prices steady, resulting in roughly mid-range prices (compared to market price) in both high and low demand times, and resulting steady employment. Nobody should be terribly surprised that nationwide we are seeing prices of some contractors fluctuate -- its just different business models and levels of sophistication. No need to bring accents into the equation.

And speaking of which, I can't believe the racist dribble pouring out of your mouth mowers. Its the same anti-immigrant rant the KKK used in the 30's to swell their ranks into the millions, so go don your robes and light some fires and leave this forum alone. And yes, it is anti-immigrant, not anti 'illegal" immigrant because the legality of it plainly has nothing to do with your stunted philosophical development. Yes, slipping in undocumented is illegal. But hell, I bet you've been known to speed, or shave on your taxes, etc. We all do. And most of these illegals (from wherever) ADD to the American economy and standard of living, not detract from it. Study after study shows that immigrants (legal or otherwise) are the most productive group in society. Why? Think about it -- they are here because they want to be, choose to be, not because they just happened by luck of the draw and accident of birth to be born here. And they come here, oh TO work. To get jobs and prosper and raise a family.

Bradleyj, you are a piece of work. Shame on you for defending illegals. Oh, I bet you hire them to clean your dirty toilets for $3 an hour, you have a warped vision of how this adds to the American standard of living. Shame on you. Get off your seat and mow your own lawn. Geesh, what kind of snot nosed kid are you?

Wow. That was quite a response there, Matt. Thoughtful, insightful, well developed, analytical and chock full of detail. Guess you showed me!! And now that you have, why don't you trot on back to your fascist-trainee kindergarten pep rally and leave the complex stuff to the grownups. Okay? THX!

Bradleyj - stick a rag in your fat mouth. You were the first childish poster to make this personal with your response. You need a little a_ _ whooping.

It's clear Bradley that while you are trying to look at the topic of illegal aliens from a broader perspective you have forgotten a couple of very important facts. One they are breaking the laws of this country by being here without proper documentation. There are many people here from all over the world legally, and they are welcome with open arms, but being here illegally should not be condoned.

While in some situations, many illegal aliens are doing work that maybe some people here legally do not want to do, it's not accurate to say they are doing only jobs no one wants to do in all parts of the country because it's not true. There are severe differences between who works the minimum wage jobs depending on where you live and the saturation of illegal aliens in the area. Maybe some pay taxes on a false social security number but the majority don't. They are paid in cash, so no taxes are paid to help replenish the funds that pay for the resources they use. These are provided and paid for by the legal tax paying citizens of this country. They do however receive free medical care without insurance, free education with special attention in schools to learn english as a second language, and additional police services for our borders as well as higher crime areas, all of which has drained our resources for people who are contributing to the system. (and those are only a few of many examples) Heck many live here for years and years but won't even learn the primary language of English so they can properly communicate with people. In many circumstances we're responsible to provide translators and printed material in THEIR language.

I lived in Mexico for a year, and I guarantee than no one spoke a lick of english to me. If I wanted to speak to someone in that country, I needed to learn spanish. So it's a double standard IMHO. I lived in Monterey as well as a ranch, in a mud hut in the middle of a no where, I understand first hand what you mean by not having the same opportunities. While that is unfortunate is does not justify the burdens placed on the hard working people in this country or the illegal manner in which they are here.

Bill is right, this conversation belongs in the hot topics room.

Again, Pete, thx for the intelligent discourse and setting me straight. Had me scratching my head for a comeback, you did.

And keepingitsimple, several things. First, just remember that the 9-11 terrorists were in this country legally with proper documentation. All of them. Second, I never said anything about illegals doing work others don't want to do. As for "taxes" -- which taxes are you referring to? Not all states have income taxes, and federal income taxes provide little in the way of medical care, schools, police services, or the other "resources you mention. Legal and illegal immigrants alike pay sales taxes when they buy things and property taxes through rent or home ownership, just like citizens do. THOSE are the tax resources used to pay for the services you refer to. Third, high crime? Get real. Illegals are flying under the radar and commit statistically significant fewer crimes than economically similarly situated US citizens. Free Medical care? All poor people in this country get that, and they get exactly what they pay for. Just spend some time at your county free clinic if you don't believe me. Free education? Again, everyone of all income levels get that paid for as noted above. So exactly WHAT burdens are you referring to? They are, by an large, figments of imagination spurred on by grandstanding politicians and media. Fourth, I live in Dallas and surprise, surprise, we have a few illegals in the area. As a group, they speak English as a second language a high percentage of the time depending upon where they grew up (border towns and larger cities see a higher level of bilingualism). Those that can't or don't learn English usually don't because they have neither the means (time or teachers or learning ability) nor really the need (keeping to themselves to fly under the radar). But generally speaking, Hispanics are the only genuinely bilingual segment of American society which is really, really sad. You lived in Mexico? Great! I lived in Belgium for a year and every one of them spoke English as well as either Dutch or French, most spoke all three and a good percentage spoke German as well.

I am sorry, this probably does belong in a different forum, but it started here. And "illegals" as a source of "burdens" on American society is just as imaginary as Jews being the source of Germany's problems in the first half of the last century. Its pure scapegoating -- identifying a target group as the cause of a problem as a way to provide a simple answer to that problem because Joe the Plumber cant get his head around the subtle and intricate complexities of the real causation chain. Will Rogers once said that for every problem there was a simple and easy solution -- and also a right one. Wise man.

I didn't read your entire response, once I saw how ignorant you are, I lost interest. Please take it to hot topics. thanks.

I do apologize for saying you're ignorant. You, like everyone else are entitled to your point of view. We should all be respectful to each other even if they are different.

Geesh, Bradelyj. Give it up already. I guess you are the type that needs to have the last word? I personally found your remarks offending to mowers. From a comment made on illegals, you turned around and made personal attacks towards him (or her).

I'M sorry, but I found mowers remarks offensive. First, it's all about illegals who are lowering the price and doing crappy work. Sorry, but it's not just illegals. Not even close. Then illegals translates into Mexicans. Once again, wrong-- thank you for playing! In addition to people from all KINDS of Hispanic countries, there are also many from Europe and eastern Asia here illegally. Up in my neck of the woods, alot of Canadians coming down for work without permission, as well.

So this can't be laid just on Illegals, and it CERTAINLY can't be laid just on the Mexicans. That whole post REEKS of bigotry.

I've worked with some great people who really knew what they were doing. And I've talked to some real losers, too. The folks my neighbors hired to reno their basement and bathrooms comes to mind. (The bathroom tiles are installed with mastic, and they used a chemical remover on the basement VCT adhesive and just put thinset over it, for just a start. Their masonry work when reframing windows was beyond shameful, too--mortar all over the bricks, and no attempt made to match the same kind of mortar lines! I talked to their plumber for about five minutes, and he didn't even know what an indirect hot water tank on a boiler WAS, much less how to install it, and he uses ONLY copper and no PEX in even the trickiest remodel--just take out another wall, y'know!--not because he has any objections to it but because he's just never bothered to learn to use it.)

I've worked with some great folks who had really reasonable prices. T&M is my fave way to go with these guys, and depending on the job, I'm cool with being fit into half- and quarter-days left over when they've gotten to a bottleneck in another project. Then, when selling my house, I've had one company with the gall to bid $1,500 to fix a "problem" with the hot water in the hall bath when all that was wrong was that a stem valve got clogged by sediment because the house was empty for too long--a $50 minimum-to-drive-out (I was a block away from my fave plumber, so drive-out was cheap) fix, with a warrantied part.

That's lazy, dishonest, or BOTH.

Out where I live now, it seems like there's a real dearth of owner-operators and a huge number of large and EXCEEDINGLY mediocre and overpriced companies. They brag about things like their employees all having uniforms and company trucks. Guess what? I don't give a flying flip about your company uniforms OR that there's a cool company logo on your trucks. If you're going to send out some wet-behind-the-ears guy who's sloppy and clueless and who gets maybe $20/hr of the $120/hr that I'm being charged, I don't want him. I want to pay $30-$80/hr plus materials, depending on the trade (sheetrocking-low, plumber-high, for ex.), and I want the money to--gasp--go mostly to the guy whose body is in my house. I want him to be worth it, and if he's worth it, I want him to be getting the money. That seems to be a mind-blowing kind of novel thought around here, though, the fact that I want a TRADESMAN, not a corporation's half-trained lackeys.

But maybe that's just me...

As quoted below. It is about time people curbed spending. It is about time all those flat screen TVs and credit card debt are biting people in the rear.

I had a contractor call me back with a 25% reduction in cost. He admitted he was slow and looking for work. I liked his honesty.

Consumers Cut Back Sharply on Spending
WASHINGTON Â Consumers, taking a beating from the worst financial crisis in seven decades, cut back sharply on their spending in October, pushing retail sales down by a record amount.

I did a quick calculation on how much my contractor charged. We're his only job for 3 months. Even if I assume a 20% profit he's making a good living but by no means getting rich. And he was the highest bid we got--we went with him because of recommendations from 3 neighbors, and because he doesn't nickel and dime us (he's had to make a few significant changes in the job and he hasn't raised his price.)

When you figure material costs, paying his subs, fuel (although that's a little better), dumpster hauling, it seems hard to make any money at all. When he keeps telling us about the surprises he's found I assure him we want him to be able to eat, and if it's something unforseen we understand if the price has to change. But so far he's managing it. The one thing I'm learning is it's not easy to make a living as a GC, and ours depends on his reputation and his quality of work to get him the next job.

My trade is stone and tile care and I can say this: There are carpet cleaners and housekeeping services who offer tile and grout cleaning and sealing, the most expensive of which is about half my price per sq. foot. No matter what the economy does or how full or empty my schedule may become, I will not lower my prices. Why? I didn't just buy an attachment for my carpet cleaning equipment and start branding myself as a tile and grout cleaning specialist. I don't buy my products at some big-box store or local janitorial supply place, and shipping costs are just a bit expensive these days. I don't expect to effectively seal a floor without my knees ever touching the ground. I not only have experience in tile and stone care, but I've spent the time and money to ensure that I'm well trained, educated and informed in my trade. I believe in my products, ability and work-ethic enough to back it all with a written guarantee that is actually worth having. Because I understand the issues, conditions, products and procedures of my trade, I will not underbid a job just to compete with someone less knowledgeable or capable, and then worry about having to knock out the next three jobs quickly and inexpensively just to make up for the one I underbid.

Make no mistake here, you will always get exactly what you pay for regardless of the state of our economy or where the Dow closed for the day.

I'll tell you something that no one has touched on, but it causes a lot of concern for me. In a post above, it was mentioned that many people have spent beyond their means, which is true. It was followed in the next sentence that the poster feels "some gratification that these reckless spenders are losing their homes or cannot send their kids to college. Good riddens on them." This is sad, folks. Is this really the state we want to live in? It's not to say that they didn't overspend or that they should be bailed out. But it seems to me that seeing someone lose their home and seeing children struggle for their education ought not be a source of gratification.

FWIW; 2 years ago we tried to get a contractor to install some doors (exterior and pocket) and ceiling fans (no wiring in place). We added a few other small jobs in the hopes it would make a big enough job to be worth someoneÂs time. More the half the people who made appointments never showed up. We did hire someone (not the cheapest guy, actually the second most expensive but we thought he knew what to do). All summer he put us off until it was too late to install that exterior door. I started over with new bids the next year. That time either no one wanted the job or we didnÂt feel confidence in their work. (Meanwhile I had 5 doors inside the house leaning against the walls!)

Then this last spring I started over. This time everyone showed up for their appointment and the bids were maybe 10 to 20% less than what they were 2 years ago. (None of these were the same people I interviewed the first time.) In talking to these contractors I found that unlike the "small" contractors we were dealing with 2 years ago, almost all of these new guys normally build houses. Since new home construction is way down here, they are filling in with other smaller jobs. So the prices WERE lower for us, but since the kind of contractors were different, that may account for the difference. We were much more pleased with the firm we hired than we had been before. These guys were efficient, more professional, and better organized than the people we had dealt with before. I think the efficiency of a full timer who has encountered everything imaginable before and doesnÂt have to build in "figure out how to do it" time into the bids may lead to a lower price for a given job: it is not that THEY have lowered their price: itÂs just that they are available to do this kind of work for the time being. We were pleased with the results and hired them back immediately to do some more small jobs while we could still get them.

Funny-- I still haven't lowered my prices, and I don't have time to turn around. I've got a commercial project going during normal working hours for the next month, as well as a remodeling project beginning this weekend for the next couple of weekends, and a residential new construction project during the weeknights starting tomorrow night.