Why We Won't Just Hand Out Vendor Referrals to the Lowest Bidder
A client recently reached out to us for a referral to re-side his personal home. We have a vendor list we trust and were glad to make the introduction.
After getting some quotes, he passed on using our vendors — instead, he chose a brand-new siding company had offered to do the job for a third of the price anyone else quoted.
Here's what happened next, and why it's a story worth sharing.
The Warning Signs Were There From the Start
Trying to save even more money, the homeowner removed the old siding himself before the new crew arrived. He tore off the existing siding and paid a 50% deposit to the new company to get started.
The siding contractor ghosted immediately. No response, no crew, no explanation. He simply disappeared.
Where the Story Actually Ended
The homeowner eventually tracked him down — in jail. He'd been arrested on drug possession charges, and police reportedly confiscated the 50% deposit, believing it was drug money. According to the homeowner, investigators have interviewed him several times, apparently trying to determine whether he was unknowingly involved in facilitating a drug transaction through the "deposit."
A home with no siding, a lost deposit, and an entanglement with a criminal investigation — all from chasing a price that was a third of every other quote.
The Lesson Underneath the Story
This is an extreme example, but the underlying pattern is common: a price that's dramatically lower than every other quote isn't a deal. It's a signal. Legitimate contractors price based on real material and labor costs, which don't vary by 3x between reputable companies doing the same job. When a quote is that far below everyone else's, something is almost always being cut — the materials, the insurance, the legitimacy of the business itself, or in this case, apparently everything at once.
It's also worth noting the homeowner made the situation worse by removing his own siding before the new company ever showed up, based on a deposit and a promise from a company nobody had vetted. That decision left him with no siding, no refund, and no recourse — a position he wouldn't have been in if the work had been sequenced properly with a vetted contractor.
Why We Maintain a Vetted Vendor List
This is exactly why we don't just hand out names when an owner or tenant asks for a referral. Every vendor on our list has been vetted — verified licensing and insurance, a track record of reliable work, and a real, checkable business behind them. It's not the fastest way to generate a referral, and it's not always the cheapest quote an owner could find on their own. But it's a filter that exists for a reason, and this story is a pretty extreme illustration of why.
If a price seems too good to be true, it almost always is. Sometimes that just means disappointing work. Occasionally, it means something far worse.
Working with unvetted vendors on your property?
A trusted vendor list isn't just convenience — it's real protection against exactly this kind of situation. Let's talk. Blair Allen Property Management serves owners across South Dakota, Montana, and Arizona.
Chris Twiggs President, Blair Allen Property Management 📞 605-545-1218 ✉️ chris@blairallen.com