By Stan Veuger
Imagine! Your roof is leaking. You call a roofer, and ask him to fix it. Instead of asking for a quote, you suggest the following: “I will pay you 5 percent of the price of all the tools you bring, and I’ll pay for whatever materials you need to fix the problem. Honestly, I really believe that’s the only fair way to deal with this.”
What do you think? Will the roofer bring more tools than he would have if he were receiving a flat rate? Will you end up paying more than if you had asked five different roofers to provide quotes?
Unless the roofer is overcome by moral qualms about the damage he can do to your future prosperity, he will probably bring every single somewhat relevant tool he’s ever bought, as well as multiple borrowed vehicles and solar panels to decorate your roof with. And those materials? Why, his buddy happens to be in the shingle business! His products aren’t great, and his prices are worse – but hey, it’s not his money! And suddenly what started out as a minor nuisance has turned into a major financial burden. (more…)