Why Price per square foot is a red flag

Pricing per square foot is more commonplace now for insulation contractors, especially in the Los Angeles and Southern California areas, particularly with residential jobs. It has become more common due to convenience—both for the contractor and the customer. The contractor can provide a price quickly without needing to spend time traveling, and the customer can avoid the stress of a potentially high-pressure sales situation. Another factor that made pricing per square foot more common was the rise of virtual estimates during COVID-19, as people were working from home and reluctant to meet in person.

However, there are several problems with pricing per square foot. One major issue is that not all jobs are the same amount of work per square foot. Factors like the construction of the house, the size of the attic space, the type of insulation, the way it was installed, and the layout and accessibility of the home can all impact the difficulty of the job. When pricing is based solely on square footage, the central focus becomes the price, and customers may compare multiple quotes without considering the differences in quality, installation process, or long-term care.

Another problem with this pricing model is that larger, established companies with more purchasing power can afford to price lower, which forces newer companies to undercut prices. This often leads to jobs where there isn’t enough money in the budget to do the work thoroughly. Many times, companies that offer the lowest price per square foot cut corners, such as not removing all the insulation or not completing the job properly. This is a common complaint on social media pages, Yelp, and Google reviews.

At my company, we create custom-tailored pricing for each job. While we can provide a rough budget over the phone, based on past jobs of similar size, the final price is only determined after visiting the home. It’s important to look at factors such as the condition of the home, electrical work, plumbing, and even the customer’s long-term plans for the property. For example, some homes, especially older ones, may have dangerous wiring like knob and tube, which requires extra care when installing insulation.

There are also several factors that can make an attic insulation job more difficult and time-consuming. Homes built in the post-World War II era may have hand-cut rafters and joists, while homes from the 1970s onward often use engineered trusses, which are more difficult to navigate. The roof pitch, attic clearance, and type of existing insulation can also impact the time and labor needed to complete the job.

By taking all of these factors into account, we can provide a more accurate and fair price for each job, ensuring that every customer gets the appropriate solution for their home, rather than a one-size-fits-all approach.