Why are contractors rates going up?

[abodolma]

I got to think with the economy the way it is, they will hopefully be dropping the rates soon. It seems like over the past 5 years everyone that is quoting me rates to do a job has cranked up the prices so high it's not even funny. OK gas going up is one reason and i understand that impacting prices, ok inflation, but after that, come on, give me a break. I'm going to start learning how to do all household repairs myself for now on -

[Brett]

I just got a bid to install a new water heater for $1,600. I told the contractor he was nuts. They tried to make me go through permits and all this extra stuff to comply with regulations. I went to home depot, paid $299 for a new water heater and installed it myself in a hour and a half. I told the contractor I would give him 500-600 and they refused. They lost a few hundred dollars on a sale and I saved $1,300.

[fast2008]

I've noticed this too and it's getting expensive. With the price of everything going up including gas, groceries, products and services, it's getting to the point where you just have to pick certain items to go without and this includes contracting services to make my home look a little better. Unless it's an emergency, i will repair it myself or leave it until my budget says it's ok.

[Brett]

I am seeing more and more of this too. Rates for every service I want are going through the roof. I hear the contractors come back with reasons such as gas and the cost of items, but this is too much. The middleman is disappearing in america my friends.

[protectmyassets]

I had a fencing quote recently and it went up over triple the cost of doing a similar job from the same company a half dozen years ago (they may also have grown and now have so much business they just raise the rates - i think before they were newer in business and hungry for my business).

[hardinvesting]

I think the economy will force them to lower their rates and be more competitive. I understand contractors need to make a living and perhaps need to charge more to make up for the jobs they don't get or bids that don't turn into jobs...

But I think contractors should have another option for cheepskates like me with no money (if we refuse to do the job with you 100% due to price alone, then they should have the dirt cheap option with no frills and put it in writing if you have to).