Bolster Blog

Pricing Disputes: How Transparency and Clear Communication Saves Your Reputation

Written by Bolster | Oct 3, 2024 2:39:53 PM

In any service-based sector, even one negative online review can tank sales numbers and end up sinking the ship. In the construction industry, one of the most common causes of complaint or negative review is the feeling of being overcharged. Whether it comes from unspoken costs, surprises on the invoice, or poor expectation setting, the result is always going to be the same: a frustrated client who feels like they didn’t get what they paid for.

While that conversation is going to be uncomfortable, the damage likely won’t end after you hang up the phone call. Today’s consumers, whether justified or not, are quick to jump onto Google and share their experiences, and these negative reviews can spread like wildfire.

To avoid these issues, contractors and housebuilders need to tighten up their processes, from the first site visit to issuing the invoice and everything in between. In this article, we’ll explore three of the most common reasons why clients feel overcharged and how transparency, clear communication, and a structured quoting process can eliminate 90% of these problems.

The Most Common Reasons for Overcharging Complaints

  • 1. Surprises or “Hidden Charges” on the Final Invoice

Let’s say you’re out for a delicious dinner, and your server asks if you’d like another round. It’s been a wonderful night, so you say sure, it couldn’t hurt, right? After saying yes to that question a couple of more times, you might just forget how expensive those drinks were, and when the bill lands, you’ll be faced with a drastically higher cost than you originally planned for. 

This happens in construction too, but that bill won’t just be a couple zero’s higher; it could be thousands. 

Clients find this one of the most frustrating aspects of receiving their final invoice. For them, it might look nothing like their original estimate, and those horror stories of the “awful contractor that scammed me” are going to be top of mind right away. 

During a construction project, unexpected issues can come up at any time, leading to cost increases. But if these changes aren’t communicated upfront or communicated clearly, clients are left feeling blindsided and upset.

In an invoice, you can’t lump an item in with its labor and other expenses and show only one number. Clear itemized quotes are essential. Providing a detailed breakdown of labor, materials, and other expenses helps clients understand what they’re paying. 

But to make absolutely sure that there are no surprises when it’s time to settle the bill, regularly update your clients (and ideally have them sign off) on any changes during the project, rather than waiting until the end. Many software tools on the market, like Bolster, can automate this process for you. 

  • 2. Disparities Between Work Expected and Work Conducted (Work promised and work delivered)

Bear with us here, but let’s jump back to the restaurant theme for a moment. Those menus on a late-night Denny's run can make the food look like it’s fit for a king. But when you order the plate that looked delicious in the photo, only to receive a half serving of hash browns and runny eggs, you’re going to feel cheated. 

In the same way, when a completed construction job, or scope of work, doesn’t match what your client expected, they’re going to feel cheated. This can happen if estimates are vague or if you or a member of your team fails to explain exactly what the project entails. 

Clients often don't have enough technical knowledge to evaluate the work themselves. For example, if a client is having a new fence put in, they might expect light landscaping work to be included. Or if they’re having their siding painted, they might assume that the fascia will be included to “complete the project.” 

This lack of knowledge leaves them vulnerable to the feeling that they've been taken advantage of when the final bill hits. But this issue is easily solved. 

You’ve got to ensure your team is setting clear expectations from the start. Take time to explain each phase of the project in detail, using general language that the client can understand. Another key step is to provide regular updates throughout the different phases of the project, so they can see the progress and connect it to the charges they will see later on.

  • 3. Lack of Transparency Around Materials or Labor Costs

Many clients don’t have in-depth construction knowledge. They don’t work in the industry, so oftentimes they won’t have a frame of reference for construction pricing, which can lead to a heck of a lot of suspicion. 

When customers don’t understand the costs of specific materials or why a job took longer than originally quoted, they may feel like they’ve been overcharged or “scammed.”

Not to beat the dead horse here, but transparency is critical. Offer your quotes with an itemized breakdown of material and labor costs, combined up front and in the invoice. This shows the customer exactly what they’re paying for and how a specific item might’ve increased in price. If costs rise during the project, but they don’t see the exact reason a “door installation” was more expensive, they’ll likely be confused or concerned. (Note: it is not good practice to separate labor and materials; most contractors won’t do this and it’s too much transparency.) 

The saying “it’s easier to ask forgiveness than to ask for permission” does not ring true in restoration. Whether it’s due to unforeseen circumstances or a common situation, communicate these issues as soon as they occur. This builds trust with your customers and keeps them informed, so there’s no sticker shock when the final invoice arrives.

The Role of Structured Quoting and Using Technology in Preventing Overcharging Complaints

Now, all of the tips provided above must sound like a whole lot of communication. And that’s true, but the good news is that many of these issues can be solved by standardizing your quoting and invoicing processes. By leveraging construction estimation platforms like Bolster (or others), contractors can create transparent, standardized, and detailed quotes that leave little room for surprise charges. 

But to take it a step further, instead of just creating transparency in your quoting, what if you could perform all of the communication through the quote itself? Better yet, what if you didn’t even have to communicate manually? With Bolster, that’s the reality that hundreds of contractors are living. 

Bolster, among many other things, offers interactive proposals that allow clients to review the project in real-time, view pricing changes, and request change orders in the quote itself. This seamless communication keeps everyone on the same page without needless  back-and-forth.

Bolster’s instant Changer Order feature also helps contractors track their changes in real-time and never forget to note down a change order or lost money on a project. Clients are notified about any extra work, materials, or time needed, and by the time the project is completed, there are no ambiguities—everything is documented, tracked, and explained.

How to Build Client Trust and Avoid Bad Reviews

As you have seen, most negative customer reviews stem from simple miscommunications throughout the project. Clients just might not be aware of how much effort goes into their projects or how complex construction pricing can be. By taking the quick 5 minutes to educate them, update them regularly, and be transparent about costs, you will go a long way in building trust. When clients understand exactly what they’re paying for, they are less likely to feel like they’ve been overcharged.

But if you’re looking to make this easier and take your customer service to the next level, check out Bolster. With features like our interactive proposals and real-time project updates, Bolster helps you streamline communication, reduce miscommunications, and ensure your clients feel informed every step of the way. You can say goodbye to those 1-star reviews and hello to a sea of glowing 5-star reviews in no time. (keeping your ship afloat/going in the right direction/sailing smoothly/Calm waters)

If you are ready for a change of the old ways, take the next step. Book a demo with our team today, and we’ll show you how we can revolutionize your client experience.