I am going to end the week with a question. How much would you pay for a 2nd opinion on anything?
My parents own a condo they rent and they have to have some plumbing work done. They got a few quotes and they asked me if I thought it was fair. I sheepishly had to say “I dunno.” I am not in a trade and I don’t know if all the quotes had hidden industry fees or were charging my parents for things that aren’t necessary.
I would be equally lost if I had to get a quote to have my car fixed, my house rewired or my accountant to fight the tax authorities. Personal service industries are so mushy in terms of fees. Unless you know something about the industry or do a great deal of research, costing has a great deal of subjectivity to it (I remember a client asking me why drafting the same legal agreement was quoted at $500 for one lawyer and $1500 for another and I could not give an intelligent response – the quotes seemed so random given the work).
Getting 2nd or 3rd quotes really doesn’t help because the people quoting also want your business so they may under-cut on one thing and then make up their money elsewhere. They are so adamant that you really need this and not that but how do you know? Plus, I am always weary of the lowest quote in personal service as well. You get what you pay for in life.
I have often thought a great 2nd career or quasi-retirement job would be someone who gave nothing more than 2nd opinions on quotes with the explicit promise they are not in practice anymore so there’s no hidden agenda other than to get the best deal for you. For example, a retired accountant could basically advise you if you were paying too much or too little (there is such a thing) to have your taxes done.
Because there is no vested interest other than the fee for the 2nd opinion, there would be, one hopes, real candidness in their opinion.
There is a growing movement in the financial industry to do this. For example, Preet Banerjee, a frequent guest poster on this blog, has a $100 second opinion service (Preet, remember the referral fee is paid in small bills only. Haha!).
I would seriously consider paying someone for some real candidness on quotes. What about you?
Have a great weekend.
September 19th, 2008 at 9:08 am
Oh, wow… we have never fully appreciated what a huge help it is to have a close (and trusted) friend who is a contractor. He is more than willing to tell us what is reasonable and what is not – he isn’t selling us a bill of goods, and he looks out for us. That makes an enormous difference for us having him to call upon if needed. He also helps us find reliable people with insurance and experience to get work done. What a relief!
Jerry
September 19th, 2008 at 9:47 am
I offer a free second opinion (portfolio analysis) and give people the choice if they want to go forward with a fee based complete financial plan or have me implement the plan and drop the fee.
September 27th, 2008 at 2:34 pm
[...] My Wallet asks if you would pay for a professional second opinion. As you’ll see, I think it’s a good [...]