For those homeowners who don’t know what http://www.servicemagic.com is, it’s a site where as a homeowner you can detail what type of contractor you are looking, give details about your job, and then contractors (who pay money to http://www.servicemagic.com) call you to service your need. Essentially, http://www.servicemagic.com is a lead service…they collect leads from homeowners and then sell the lead over and over again to any contractor who will pay for it. Each contractor must prove his company is insured, but that’s not that hard.
Here’s why Voyageur Flooring has stopped working with http://www.servicemagic.com. We have nothing against anyone at ServiceMagic, but feel like sharing why we left will ultimately benefit you (the consumer)!
1. As a homeowner, you have a need within your home that you are willing to pay someone to solve. You don’t need 10 companies to solve it – just one. ServiceMagic.com sells your lead until they are blue in the face often times resulting in a “mad dash” to your doorstep.
2. The best companies don’t always win – which means as a homeowner you don’t win. Companies that don’t spend money on advertising or other traditional business practices can simply be a member of ServiceMagic and call it a day. It’s not a sustainable business model but it can work for awhile. In the meantime, the loser is the homeowner.
3. Because “the lead” is sold more than once, twice, three times, etc., this eventually will result in a degradation of the services provided. For example, if company A knows they need to bid the work REALLY low to get the job, because they are bidding against 6 other companies, what do you suppose will give way in this scenario? The answer is something that hurts the most important part of the equation – the homeowner that has a need! You see, company A is going to bid it really low to get “the work” and then will skimp on the supplies (using poor quality materials) which pads his already slim profits.
As a homeowner, you have a lot of research tools at your disposal via the web. We encourage you to utilize those tools (ie: look for letters of reference, reviews, etc.) and make an informed decision about your contractor (on your terms). Don’t fall for the low price leader – when it comes to hiring a contractor, you get what you pay for.