Integrators are the same price…

You will find good quality electronic integrators across the country generally have the same costing structure.  The difference in price usually has to do with the difference in scope – or even the perception of the scope.

When creating a proposal, most installation firms locate the costs of goods and services into one of three buckets.  The electronics and installation material pricing are typically set by the manufacturer.  The ‘labor’ category covers all the human resources (and overhead) to produce the desired project outcome.  Companies typically formulate this labor cost into a ‘per hour’ estimate or sometimes as a percentage of the of the materials installed.

Since most companies pay similar overhead, and most owners try to be competitive, the biggest discrepancy between proposals comes down to the perceptions of the project guidelines.  This can create great confusion when comparing proposals.

A properly prepared, industry termed RFP can help to narrow this perception and give the client a more acurate choice between companies.

A loose proposal request, especially if communicated separately by a builder and homeowner, will lead to more confusion and will naturally focus on price, and not the appropriate design criteria for the client.  

 

 

Posted in Who to hire?