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On the 14th of Dec I gave a customer a price for a SS top of $3822.00 and said I could have the job done before the !st of the year. The customer then went to Lowes to get a price and Lowes gave her a price of $2580.00. I told them there was no way they could do their top for that price, but the the customer said no that is the price they are going to do the top for and said they would have their counter in 3 wks.
Well I talked to the X customer today. their counters were installed Jan 24 4wks after I said I would have them done at final price of$3800.00.
I lost that job over a lie and $22.00
You lost the job for the same reason we do. The box stores know how to market and they are willing to lie to the customers to close the sale.
Not to mention, we as fabricators are crappy sales people.
Dani,
The same thing happens to us all the time. I just did a quartz job where the customer picked a $49. sale price granite from Lowes and then they wanted me to price the top, at first I refused until they told me the final price that Lowes thought it would cost to do the job, ends up we were cheaper at the bottom line even though our sq ft price was a lot more. If you multiplied the job footage by their quoted price there was a discrepancy of about $1500. That is why when people call and wonder what we charge per square foot we tell them to forward a lay out to the office for a quote because people think that if Lowes gives them a price for $x and you tell them $xx you are going to be way more expensive.A number of years ago, lowes “unbundled” their pricing. Basically the sq ft price shown, is only the starting point. Edge build up, edge treatment, sub deck, radius, finished ends etc etc etc are all extra. This type of promotion is not new. Many years ago I ran an ad stating I gave 99% off on cabinets. I actually had folks come in asking how I could afford to do that. I said you have no clue what my “list price” is, so a % off meant nothing. My ad stated 99% off what… my price list that’s inflated more than others.. it’s the bottom line that counted.
Sadly most customers, even after explaining it, didn’t get it. They actually think a % off, or in this case a sq ft price is all inclusive. They see the sq ft price and that’s all that sticks in their head. Most folks are going to “feel better” about spending large amounts of money with a large company, rather than a small shop. Not sure how you over come that. That is where a good trade association, with real teeth, can help a fabricator. Putting their “seal of approval” on the shop, with some sort of guarantee for the customer, may help to reassure them.
On the other hand, not all customers want to purchase from a box store. Some actually want to buy from peeps in their local community. Guess that’s why I had good luck advertising in the Church Bulletins, it made me “more” part of the community.
That sucks Danny….don’t know what you could do, other than warn them about how the box stores bait and switch, and hope, that when it happens they will come back to you. They do have the customer locked in, since they get paid up front for the tops, then, after measure, hit them with the extras. At that point the customer may not feel they have options.
I know you would of given them a much better job Danny, then they would receive at any box store.
We only do job prices. Square foot prices mean nothing. If you educate a quality customer, you have a good chance of getting the job. Don’t forget to tell them to never, ever put a 100% deposit on anything.
A few things to ask the customer .
How much did you have to put down before they would schedule a template . I bet 100%How much to rip out the top. Will you dispose of my old top. How muchDo you have to rip out my old top before you templateHow long before you come backWill you disconnect my sink or do I have to pay for a plumberWhen you add all that up the box store will be moreThis sounds like what I have been hearing alot lately. Same things going on here in New York. We spent quite a bit of time with some folks a month ago. They picked out a product and liked the price.
A few days later they called to say they were buying appliances at lowes and by chance they gave them a price 1400.00 less then us. I explained lowes way of quoting and by chance it may change when all is said and done. They asked if I could come close to lowes price then, I would have the job. I explained that was not going to happen and told them why. The homeowners responce was for 1400.00 I’ll take my chances.Dani, Just wondering how you happened to talk with this people again, did they call you to let you know what happened?
Posted By Wags on 19 Feb 2013 02:19 PM
On the other hand, not all customers want to purchase from a box store.
I have had customers that told me up front ” I don’t care if I have to pay more, I will not buy a countertop from …. (big box stores)” We rely on word of mouth advertising and I’m a believer that if you burn someone, sooner or later it will come around to bite you, which is the reason I think some people need that attractive low, low price.
The ONLY advantage a box store has, is in advertising. They can spread the cost over a great number of products, and a great number of locations. They are still getting the product from a local fabricator, and then have to mark it up, typically in Lowes case, for counters, about 22%. You CAN compete against them.
Yes, typically they make you pay 100% up front, and, the successful fabricators will up sell upon template. I know one that does about 75% cove splashes, higher sheen finish, inlays etc. Most don’t do that. In fact, from experience, most that do the templating are NOT sales people.
I don’t know what the answer is, but I would do home shows, local events, even be a guest speaker at women’s clubs etc to make your company the experts in the field. Again I had good luck advertising in the church bulletins…everyone reads them ( instead of paying attention) they are cheap and do show you in a good light…supporting the community.
If I went to a church that had advertisements in their weekly bulletin, I’d find a new church.
I’ve been going to church for over 50 years, and have yet to see an advertisement in a bulletin.good questions Jon.
We make it known to the customer we are the sales person, the fabricator, the installer, also we may be able to take care of other small carpentry tasks while on site. We will be right there if you have a problem in the future not 80 miles up the road.
It does happen still but I have already seen that if the low bidder stays busy with his low bid jobs he wont last long…at least in my area.Box stores dont have crap over one stop shops imo
Let’s face it, we will all loose jobs to the big box stores, it’s just reality.
If you improve your sales skills, hopefully it will happen less over time. Price is not the determining factor in most consumer decisions so you should have a leg up if you educate the customer.
Len.. every church I have ever gone to, had ad’s of local company’s (most members) at the end of the bulletin. In fact, their are companies that sell the ad’s for them, print them at no cost to the Church. Perhaps in smaller church’s. or smaller markets it doesn’t happen, but in Chicago burbs (where my stores were) and here in Phx they have ads.. And everyone reads the ad’s rather than listen to the sermon lol.
A few links about advertising in Church Bulletins. I searched it came up with 73,000,000 sites ! yikes.
http://forums.finehomebuilding.com/breaktime/business/church-bulletin-advertising
It may or may not work for you, but it did work for me.
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