Beware of the "Low Down Payment" Trap for Home Improvement

Ms. Lu, who is preparing to renovate her new house, told reporters that there are many owners in her community who are preparing to be renovated. There are no fewer than a dozen companies in the small and large decoration company. Some decorators told her that the decoration can be paid after the decoration. “If you think Work well and give money." Ms. Lv is both curious and does not rest assured. “Before you work and then pay, it sounds good, but will you have any problems?”.
According to the reporter's knowledge, at present, payment methods such as “first-decoration, post-payment” and “0 down payment decoration” are quite popular among small and medium-sized home improvement companies. For some home improvement companies or construction teams that use installments, consumers can also pay for the decoration. "bargain". In the interview, many consumers hoped to retain more end-of-funds and use it to “press” home improvement companies or construction teams. However, people in the industry said that such payment methods cannot really avoid risks, once the construction quality is poor. , low-reputation, non-standard home improvement companies, consumers may suffer greater losses.
Decoration industry claims new payment method or marketing “saucer”
Although "decoration, postpay" and "multi-payment" are quite eye-catching, some large home improvement companies have not adopted these new methods. Liu Sheng, general manager of Henan Longsheng Decoration, told reporters that for the payment method and proportion, the industry has a clear provision, namely the first paragraph of 55%, 40% of the interim paragraph, the final amount of 5%, the first paragraph in the design of the design, offer, After the signing of the renovation agreement, payment will be made and the intermediate payment will be paid after completion of basic renovations, hydropower renovations, carpentry collections, and other important items. Before paying the interim payment, the consumer must accept the project, wait until the renovation is completed, the quality inspection is completed, and the consumer approves. After the overall decoration effect, pay the final payment and sign the warranty contract.
“The initial payment of 55% is determined by the market and it is also an industry experience.” Liu Wei said that due to the early stage of renovation, workers' entry, equipment protection, and material use all require large amounts of capital, especially for the decoration materials. The proportion of funds is even greater. Some newly established companies need new profit points under fierce market competition. They break industry regulations and market rules and attract consumers through “multi-period payment” or “first decoration, postpay”. This kind of practice requires companies to make upfront advances, pay for materials, and labor costs. Once companies face cost pressures, the risks posed by these pressures are likely to be passed on to consumers, resulting in delays in construction and rough construction.
For these "fancy" payment methods, many people in the industry think that some newly-established or small-scale home improvement companies have come up with ideas for differentiated operations. "The real big companies will not attract consumers through this method." Henan Longsheng Decorations told the reporter that some small and medium-sized home improvement companies have considered making payment because of their lack of competitive advantages. However, some of these payment methods are It is also "hidden mystery."
Dong Yinglong analyzed the “0 down payment decoration” as an example. Some non-standard home improvement companies, especially some construction teams, did not really “don't spend a penny” on the so-called 0 down payment. Once the construction team enters the field, they do not charge only. The construction costs and material fees still require consumers to pay for the bills, and it is difficult for consumers to verify the material costs of the construction team. It is inevitable that the construction team will allocate the labor costs to the materials fee.
Renovation owners need to be vigilant to “buy” buy risk interviews. Much to consumers, such as Ms. Lu, said that she “sounds good” to the new payment method, but there are also many consumers who are skeptical and worry that this is a “trap.” Industry insiders remind consumers that due to the current unsatisfactory renovation market, for some home improvement companies lacking financial strength, such as “first-decoration, post-payment”, “0 down payment decoration”, “multi-period payment” and other payment methods, must be Raise vigilance so as not to cause trouble to the decoration.
"Although it promised to first decorate, postpay, or pay down the first decoration, but in order to reduce costs and maintain operations, some home improvement companies or construction teams will choose to participate in low standards," an industry source who declined to be named told reporters that some construction teams In the unfamiliar part of the consumer, they will cut corners and materials, and even rush to complete the project, in order to receive the decoration fee as soon as possible. Once the consumers question, the construction team will “work” and “grind”, delay the construction period, delay the owner’s check-in time, and require the owner to Pay the fee.
“These payment methods seem to be able to restrain home improvement companies, but if consumers choose a small company that lacks credibility, there may be many problems later in the period.” Dong Yinglong said that some non-standard companies or construction teams did not perform renovation contracts according to industry standards. However, it is unilaterally agreed that, and because of the cost pressures in the early stages of construction, the construction team may reduce the investment, and even use other decoration materials. In the end, it will not only cause problems in the quality of the decoration, but also may cause risks in the environmental protection and repair of the home improvement.
“When decorating, we should not look too much at the payment method,” said Dong Yinglong. “Even if we pay multiple payments, for example, pay 30% first, then pay 30% in the medium term, and pay the last 40% twice. If something goes wrong, Consumers are reluctant to pay the final payment, and some construction teams will also force consumers to pay in the name of no warranty."
“Changing the payment method is not an effective way to restrict home improvement companies and allow them to conduct good-faith construction,” Liu said. These new methods often pose risks due to immature operations. Once these risks are passed on, the consequences can be very serious. “A consumer had reached an agreement with the construction team and set aside 20% of the final payment for insurance, but in the end the worker took away his heating and caused the interior to soak in water and cause huge losses.”
Relevant persons in the industry reminded consumers that when refurbishing, they must sign a formal home improvement contract with the decoration company. All the detailed items are listed in the contract. The responsibilities and rights of both parties are clearly defined, and the additional items that may appear in the project must be clearly defined. In the acceptance of the project, it is better to have third-party supervision involved. Once the decoration company and the owner have different opinions, there will be more fair judgment.
Renovation experts say that attracting consumers still needs "real materials"
Consumers are interested in payment methods such as “first-decoration, post-payment” and “multi-period payment” because consumers have doubts about the construction quality of home improvement companies and hope that they can retain certain “active rights” during the renovation. He believes that if a home improvement company wants to attract consumers, it must rely on its brand and reputation to dispel consumer concerns rather than how to make payments.
Although fresh payment methods can temporarily attract the attention of consumers, once the construction quality is not enough, new ways to attract attention will also be revealed. Zhang Ren, Secretary-General of the China Building Decoration Association's residential decoration and decoration committee, said, "First renovation, After payment, "0 down payment decoration" and other payment methods, some decoration company and construction team's "credit commitment", in essence, lack of genuine guarantees, and the payment method is difficult to become a major factor in determining the choice of decoration companies, construction Quality, service methods and after-sales maintenance are the key conditions for choosing a home improvement company.

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