Price vs. Cost

posted in: Homeowners | 0

Price:

For years we have been told to pick two from price, quality, and service.  Does this still apply today?  Yes, but on a different level.  With the introduction of the internet and discount stores, one must be more careful when deciding what is important when purchasing floor covering.   

Before you start looking for flooring, ask yourself these questions.  What am I looking for in the end?  How long do I expect the flooring to last?  Do I plan to stay where I am, or will I be moving in the next few years?  What type of use is this floor going to be subjected to? Are there pets?  How many people and what are the ages of those who will be using this floor?

Often the end user purchases an entry level product, thinking they got a really good deal on a higher quality product.  An entry level product’s warranty often has fewer warranted occurrences and a much shorter warranty period than a higher priced product with a higher quality.  

One must decide if the budget will allow for a higher priced or higher quality product than the entry level product.  If the budget allows it, it is better to step up the quality of the product purchased.  However, all of the information on the internet does not necessarily give one the knowledge to find a high-quality product at an entry level price.  If the price is too good to be true, it is most likely is not true.

Quality:

The same questions need to be asked to determine what quality level is needed.  The Internet and discount stores provide a venue to sell goods of less than 1st quality. 

Not all, but many manufacturers list on their websites that these are the venues they use to sell their off goods or seconds they considered to be sale-able.  They chose to only market their 1st quality goods through the retail outlets in their supply chains.  These same manufacturer's websites often list that products bought from these outlets carry little to no warranty.  This does not mean all products sold on the Internet and in discount stores are not 1st quality goods, but one needs to be careful.

Off goods are marketed by many names.  Some of the grade names are called seconds, trial runs, off goods, tavern grade, cabin grade, Grade A seconds, Grade B seconds, and mill run.  Some are downgraded because the color may not be close enough to the control sample and cannot be sold as 1st quality goods.  Some have manufacturing issues that allow them to be installed but require a much higher level of waste than 1st quality goods, so more material will need to be ordered than would be needed with 1st quality goods.  One must consider if the extra product purchased saved any money, or if it would have been cheaper to buy the 1st quality to begin with.

The end look can also be deceiving depending on the quality of the product.  With hardwood, the rustic hand-scraped products generally allow for knots and splits in the wood (called checks) as character marks and part of the pattern.  These character features do not down grade the product and are to be expected.  However, some of these character items can be found objectionable upon a site inspection.  This may not be a manufacturing issue, but an over expectation by the homeowner wanting to achieve a rustic look. Today, what would have been culled out and thrown away at the mill just ten years ago is now being sold, often at a premium price. 

Service:

A knowledgeable salesperson can save you from disappointment and problems in the future by asking questions to help find a product that will perform in your setting and give you the end result look you are looking for.

A salesperson offering quality service will often offer installation services as well. It is important to make sure the person installing your new floor is familiar with the product and the installation requirements.  A similar product by a different manufacturer may have a different installation process.  A knowledgeable installer can alleviate future problems regarding installation issues as manufacturers do not cover installation related issues.

Price vs. Cost:

Let’s look at a scenario that will help you understand what is meant by price vs. cost.

A discount store is selling a hardwood for $2.39 a square foot, and you need 500 square feet.  A relative who worked for a hardwood installer a few weeks last summer that has offered to install the floor for a couple hundred dollars.  The total cost for the floor would be $1395.00 (hardwood at $1,195.00, plus installation at $200).  The full-service retail store has a hardwood with a similar look, but charges $4.49 a square foot for the hardwood, and the installation is $3.50 a square foot.  The total cost for the floor through them would be $3,995.00.

A year or two later the floor fails.  The reason could be low quality goods or an installation failure. The manufacturer may call it an installation related concern, and your relative is going to call it a manufacturing related concern.  The truth is, since it was purchased on price, it may not have been a product that would perform in the setting it was installed – leaving you with a floor that has failed and now needs to be replaced.

Now, you purchase higher quality flooring, and have it installed by a professional.  The labor to remove the old floor is $2.00 a square foot (or another $1,000.00), and the price of the new product installed is $3,995.00.  So, the total cost is now $6,390.00.  Buying the higher priced flooring initially and paying for professional installation would have been $3,995.00.  Even though the dollar amounts in this example are made up, the result is always the same.

Warranties on products do vary, and it is up to the consumer to make sure what is and is not covered by a warranty.  If a claim is turned down on a product, it can most likely be found under the not covered section of the warranty.  If a product does not live up to the warranty, the manufacturer wants it removed and replaced as much as the end user.  However, if a claim is turned down, the manufacturer is not responsible for the installation. Also, the consumer is responsible to follow the care information provided with the floor. If the information was not provided, it can be found on the manufacturer’s website.  Once the flooring is installed, the care of the floor transfers to the consumer for proper maintenance. 

By asking yourself what the two most important are from price, quality, and service, you can determine how high of quality you want when choosing a flooring product.  What two are you the most interested in?

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