Customers and flooring companies lose on this one about half the time. A customer will buy a certain type of padding from a flooring company that they want installed with their new carpet. The flooring company then takes the customer's order and provides the correct ordered padding with new carpet to their contracted carpet installer. Carpet installers get paid 2.50 a yard or .28 cents a square foot to install carpet. If the home is empty (no furniture) then they get paid less; about 1.50 a yard to 2.00 a yard or .16 cents or .22 cents. The carpet installers that get paid .16 cents a SF are 90% of the time illegal immigrants and property management companies for large apartment complexes usually get away with paying this amount to theses installers since when they recarpet an apartment the tenant moved out already.
This being said most carpet installer has an incentive to steal from the home owner and flooring company.
Scam one: The carpet installer never removes the old pad from the customer's home for the new carpet install. The carpet installer then takes the customers new pad they were supposed to install and resells it after the job on the black market. A typical roll of 6lb or 8lb carpet padding is 270sf and sells on the black market for – a roll. Home Depot and other stores sell this same padding for 5 a roll; 8lb padding sells for 0 a roll. The installer makes instant profit. So let's do the math. A carpet installer is paid .28 cents a sf on a normal home owner's install of 12x125sf roll of carpet. That means they will make 0.00. That same job requires 5.5 or 6 rolls of carpet padding to do the job. 6 rolls of 6lb padding can sell on the street for 0.00 at the lowest bidders buying price. Or to put it in layman's terms some carpet installers never install your new padding you paid for and sell it for an overall increase in job profit of 50%.
Golden Rule: If you're buying a new house or it's your current house be in the house and make sure the carpet installers change out the old carpet pad. The customers that usually get ripped off on this scam can't be home or present for the installation and no one ever checks or pulls up new carpet to see if the old pad was changed out.
Scam two: The customer pays for an 8lb pad that cost considerably more than a 6lb or 4lb pad and the carpet installer installs a cheap 4lb or 6lb pad in the customers home and sells the 8lb pad on the street after the job is completed. Most carpet installers have storage units out in town that they store old pad from the jobs they do. One roll left over from one job and another roll left over from a different job adds up. Carpet installer are always ready to switch out 6 or more rolls of expensive 8lb padding with cheaper padding they have stored somewhere else.
Golden Rule: Check the padding that shows up at your home on the day of installation make sure it's the pad you paid for and watch to make sure that pad is the pad that is installed.