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Old 10-04-2008, 09:10 PM   #21
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How do you guys feel about low price guarantee?? the way we have talked about before.
It depends on who you're targeting. Some of the areas I'm targeting aren't looking for the lower priced. They want the best & want to pay for the best.

On the note of Free Estimates. Most know it's a norm, but I have had a few people state "I'm calling about your free estimates", so it does indeed stick in. I think by atleast mentioning it, it may possibly toss some off into thinking "maybe others charge for this, I don't want to pay for that so I'm calling this company". Or maybe it reminds them it's free, so what do they have to lose by calling. Who knows, but it's not going to do no harm.
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Old 10-04-2008, 09:20 PM   #22
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My question to the guys who dabble in low price guarantees would be...how (when we spend time advising the "how much do I price" guys on painttalk that everyone's business structure, overhead and costs are so different) can we possibly suggest to customers that we would be willing to match or beat anyone's price?

I can see George's concept of apples to apples, however there are many PDCA members within 10 miles of us whose pricing I would not want to be anywhere near.

I am not among the more savvy marketers here, but I personally don't care for the low price and discount angle. I am surprised it is so popular when we talk so much about promoting the value of our services.



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Old 10-04-2008, 09:51 PM   #23
 
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I see a low price guarantee working for a retail store. For example:

You look at let's say 2 electronics stores. Both get that same 42" TV for around the same price from their distributor. Store 1 sells it at $1000, the other for $1100. Store 2 offers a low price guarantee, matches Store 1 and wins the sale. But what matters is that both these stores have a markup of 500%. So really, they are still laughing, because instead of losing a sale, they made less than usual on that sale - but at least sold it.

Painting a house doesn't have a markup - which is where a low price guarantee becomes risky. We don't purchase the job, and then resell it to the homeowner. Which takes that stability of knowing how much you can make on each sale. The only markup we see is maybe the paint. And everyone's estimating abilities and systems differ. I trust my systems - but I do not trust Joe Blows Painting enough to offer a guarantee.

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Old 10-04-2008, 10:12 PM   #24
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My question to the guys who dabble in low price guarantees would be...how (when we spend time advising the "how much do I price" guys on painttalk that everyone's business structure, overhead and costs are so different) can we possibly suggest to customers that we would be willing to match or beat anyone's price?

I can see George's concept of apples to apples, however there are many PDCA members within 10 miles of us whose pricing I would not want to be anywhere near.

I am not among the more savvy marketers here, but I personally don't care for the low price and discount angle. I am surprised it is so popular when we talk so much about promoting the value of our services.
The purpose of the low price guarantee is to promote the value of our services. There are many ways to make this point. We are in an indsutry where price is often an issue. Why not address that head on? That is what the low price guarantee can do.

Brian Phillips
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Old 10-04-2008, 10:36 PM   #25
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How's about

"we speak your language, we're American, we're legal, and will be here during harvest season"
not a call to action, but all of my trucks, signs, website and literature all have "American Owned and Operated" with an American Flag on it. Very few can claim that.
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Old 10-04-2008, 10:58 PM   #26
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The purpose of the low price guarantee is to promote the value of our services. There are many ways to make this point. We are in an indsutry where price is often an issue. Why not address that head on? That is what the low price guarantee can do.

Brian Phillips
It really depends on your clientel. Discount or low price guarantee work is not the work I market towards. This is exactly why I have a 80%commercial 20% residential mix. The commercial and NC work keeps the machine running and the residential work is the cream. Never cut the cream short ...like it nice and fat. Id rather have 50 jobs a year at 30% than 150 per year at 10%.

But with that being said I do like the "Winter Coat Sale" slogan ....now just find a way to incorporate a item to add that wont effect your margin ....free ceiling with any room* (*no cathedral ceilings, rooms 14x14 and under, must have purchase of walls and trim) ....or something like that......I hate the idea of money discounts with any contractor service.

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Old 10-05-2008, 09:29 AM   #27
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It really depends on your clientel. Discount or low price guarantee work is not the work I market towards. This is exactly why I have a 80%commercial 20% residential mix. The commercial and NC work keeps the machine running and the residential work is the cream. Never cut the cream short ...like it nice and fat. Id rather have 50 jobs a year at 30% than 150 per year at 10%.
I agree with you. In a NC or commercial business, a low price guarantee could be suicidal. It probably could work, but would be more difficult.

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But with that being said I do like the "Winter Coat Sale" slogan ....now just find a way to incorporate a item to add that wont effect your margin ....free ceiling with any room* (*no cathedral ceilings, rooms 14x14 and under, must have purchase of walls and trim) ....or something like that......I hate the idea of money discounts with any contractor service.
I use this in a variety of ways. I might offer a discount if someone books interior work for January and gives me a deposit in August. I get the money for several months and have the work on the books. That gives me some peace of mind, reduces the marketing that I might need to do, and I earn a little on the money. These things help offset the discount.

I might offer a paint upgrade, or a free room, or any number of things. I try to gear it towards the particular customer to create a win- win. It's a very flexible concept.

Brian Phillips
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Old 11-12-2008, 04:07 PM   #28
 
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Quote:
Originally Posted by JNLP View Post
It depends on who you're targeting. Some of the areas I'm targeting aren't looking for the lower priced. They want the best & want to pay for the best.

On the note of Free Estimates. Most know it's a norm, but I have had a few people state "I'm calling about your free estimates", so it does indeed stick in. I think by atleast mentioning it, it may possibly toss some off into thinking "maybe others charge for this, I don't want to pay for that so I'm calling this company". Or maybe it reminds them it's free, so what do they have to lose by calling. Who knows, but it's not going to do no harm.
I never thought of offering "free estimates." You're right, it can't hurt anyone, and I think some people are in the mindset that when they see free anything they take advantage.
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Old 11-12-2008, 04:42 PM   #29
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We have received many projects because of our low price "apples to apples guarantee" and we have never lowered our price to theirs. We also state that if we cannot match their price we will pay you $50.00. Never had to pay that either. It usually perks the customers interest in comparing what we have to offer instead of just price.
We also do the holiday call to action ie. Company will be arriving, Are you ready??
Everyones coming home for the holidays! Are you ready!!!! Just to name a few.
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