Negotiating tips from tradies.
Do trade studies at TAFE include behavioural economics, sink cost theory and the application of the framing principle? Successful tradies are masters in applying these theories in their daily negotiations.
Giant tradie utes clog our highways as they travel from job to job. The fridge at the convenience store is packed with their preferred drink - iced coffee with names like Dare and Boss. Hi-Vis clothing is fashionable and, have you noticed our politicians regularly appear in hard hats and lurid clothing?
Though we appear to be overrun with tradies, for consumers, the ongoing scarcity of tradies creates an uneven balance when negotiating. To protect ourselves, we have to understand their common negotiating tactics and develop counters.
An example where the consumer is at a significant disadvantage is in roof repairs. Leaks start in mysterious places and few home owners are prepared to climb onto the roof to inspect.
Deidre Macken writes in The Australian of a tale where she was quoted $6,000 for a ‘complete fix’, but only $2,800 to fix the leak. By quoting and anchoring a large number first the tradie has framed the lower number as reasonable in the circumstances.
The tradie then proceeded to use their ‘expertise’ as a counter for a request for further information. When asked what the issue was their response was, ‘It’s complicated’. When pressed further to explain what they would actually do on the roof, they refused to answer on the basis of, ‘If I tell you, could fix it yourself.’ By controlling the know-how they protect their negotiating advantage.
Another common technique often used by tradies is to creep the price up with ‘extras’. When asked for a quote to paint a room, the tradie offers $715. Once the $715 price is accepted, the tradie then responds, ‘Want me to do the pelmets and the skirtings?’ and then quotes another $175 to include them.
While understanding some of these techniques will help us in our negotiations with tradies, it’s important to understand the expertise each tradie brings to the task. Instead of trying to win the negotiation, building relationships based on trust and collaborative negotiation puts you in a far better position to get the job done.
Happy negotiating!