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Old 03-08-2011, 04:30 PM   #21
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Agree on scope of work, give price, do the job. Everybody wants gold for a bronze price, so I think this will only create headaches and lack of satisfaction for the customer.

They will say to themselves this is more of a silver job, but I payed for gold. Or silver job but they payed for bronze.

I agree with NEPS, just one set of quality and expectations is enough. Besides, if your going into a dump, who's going to want the gold? likewise in a 2 million dollar house, who'll want the bronze? Its common sense.
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Old 03-08-2011, 04:33 PM   #22
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Quote:
Originally Posted by LA Painter View Post
If you think a business who tries to be all things to all people is somehow better than one who only offers one level of quality, then good luck with that too!
Gotta go with George on this one. I agree with you to a point LA, but I have found it is important to listen to what the customer wants and then sell them what they are interested in buying, making suggestions and offering options as appropriate. When you go to the mercedes dealer there is still a pretty broad price range from top of the line to a more modest vehicle-all of them nice automobiles and both the buyer and seller ends up happy. I don't get involved though, in any bronze/siver/gold pricing. I figure the project based on what was discussed and what the customer is interested in.

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Old 03-08-2011, 04:38 PM   #23
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I will give 3 for exteriors. I call them "Options" 1=best, 2=better 3=good. I recommend the Option 1 or 2 and down play 3, basically talking smack about the competitor that only does "good" estimates, and it isn't directed towards them but gives the prosapect some education on those "good" guys. Option 3 is a blow and go, "good" with a cheap paint "good".
The only difference between 1 and 2 is the product. Both are high end product, 1 being a hybrid elasto, 2 being 100% acrylic coating, both with the same amount of prep. I do this so the prospect can compare apples to apples. And if they get a "good" bid then maybe they will see the similarities with the pricing with my option 3.

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Old 03-08-2011, 05:11 PM   #24
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Although I have been talking up this tiered system, in all fairness I changed how I did it for the majority of houses. The tiered system works for certain circumstances, but I have begun to do something else.

I give them a silver package price which includes best prep and good quality paint.

Then I just list some "upgrades" in products and the price.
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Old 03-08-2011, 05:57 PM   #25
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Quote:
Originally Posted by LA Painter View Post
If you think a business who tries to be all things to all people is somehow better than one who only offers one level of quality, then good luck with that too!
I just don't know how to do it otherwise.
We had residential repaints that were over $60,000.00 customer happy
We also do maybe 30-40 retirement home apartments yearly. The average of the apartments is maybe $500. They are happy too.
I think there are a few differences between the two types of customers.
Core competencies aside, we try to give customers what they want.

The funny thing is, the profit margins were very similar in the two
above examples.
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Old 03-08-2011, 07:01 PM   #26
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You have to paint to the situation. The situation is: "the maximum amount that the property owner is interested in investing in their property and your business."

We aren't that commoditized of a service as to be able to put up a drive thru menu like macdonalds. Painting is a subjective craft. It's not measured exactly in units of output, such as price per gallon. You just try to do the best you can, without doing it at your own expense.



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Old 03-08-2011, 07:41 PM   #27
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I have an issue!

That is, when I take on a job which the investing party is a low investment. I can't keep from putting the maximum amount of time into prepping. My mind puts me through the ringer, "my name is all over this" "someone is gonna see this mess" "it's gonna fail".
My name is Gabe and I'm a prepoholic!

I've taking on different caliber of jobs, I offer a wide range of painting. Although my specialty is commercial and new res. I just can't offer up poor craftsmanship to the low investing party. My mind just won't allow it. Had a competitor tell me he can't make money on quality, I was like I can't make money on shoddyness.
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Old 03-08-2011, 07:47 PM   #28
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Back to basics, listen to your customers needs/wants. Charge accordingly.
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Old 03-15-2011, 12:05 AM   #29
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For interiors, I discuss the customers needs with them and try to steer them into the paint that makes sense for their use. So i wind up presenting one price, although I sometimes give various options (price adjustment lines) for different paints.

For exteriors, I do quote three options, but they are identical in all things (prep, workmanship, warranty) with the exception of paint. I use a spreadsheet estimating/quoting tool, and it is set-up to caclulate all three prices with no extra effort on my part.

I quote three options for several reasons. Where I am working, one coat exteriors are typical, so I up-sell a lot of SW Duration, and I want to show the one-coat Superpaint price for comparison to my competitors. I position one coat of SP as being suitable for "make ready" work where owners don't care about it lasting more than 5 years, and in so doing I also box-in my competition who goes right to one coat of Super in the hopes of winning on price. I also show a price for two-coats of Super, but I position that for more drastic color changes, new construction or very old & weathered homes, or "traditionalists". Again, most of the work in my area (by everyone) is one-coat jobs, so showing a two coat price puts things in perspective. It is also there for the cases that need two coats.

Studies have shown that when given 3 choices, people generally choose the one in the middle. They don't want to feel like they lost out by trying to save a few bucks, but they also don't think they need the "extravagance' of the most expensive choice.

i would definitely advise not cutting any corners to shave the price because as has been pointed out, the neighbors won't know that your customer cheaped-out, only that the work doesn't look as good as it should.

Lastly, when that inevitable call comes and the prospective customer asks if I can do the job for $300 less, I can say "sure -- with Superpaint instead of Duration". I have clearly spelled out some options, and this gives me a tool to push-back on their angling for a discount that is not in my business model.
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Old 03-19-2011, 10:06 AM   #30
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Quote:
Originally Posted by PressurePros

But...

I chase high margin house washes. Tiered selling is incredibly easy to close. It puts the customer in control and almost never does a customer choose the cheapest route.
I agree. People love choices and feeling like they have control. Key word... feeling.
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Old 03-19-2011, 10:18 AM   #31
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Quote:
Originally Posted by LocalPaintPros View Post
For interiors, I discuss the customers needs with them and try to steer them into the paint that makes sense for their use. So i wind up presenting one price, although I sometimes give various options (price adjustment lines) for different paints.

For exteriors, I do quote three options, but they are identical in all things (prep, workmanship, warranty) with the exception of paint. I use a spreadsheet estimating/quoting tool, and it is set-up to caclulate all three prices with no extra effort on my part.

I quote three options for several reasons. Where I am working, one coat exteriors are typical, so I up-sell a lot of SW Duration, and I want to show the one-coat Superpaint price for comparison to my competitors. I position one coat of SP as being suitable for "make ready" work where owners don't care about it lasting more than 5 years, and in so doing I also box-in my competition who goes right to one coat of Super in the hopes of winning on price. I also show a price for two-coats of Super, but I position that for more drastic color changes, new construction or very old & weathered homes, or "traditionalists". Again, most of the work in my area (by everyone) is one-coat jobs, so showing a two coat price puts things in perspective. It is also there for the cases that need two coats.

Studies have shown that when given 3 choices, people generally choose the one in the middle. They don't want to feel like they lost out by trying to save a few bucks, but they also don't think they need the "extravagance' of the most expensive choice.

i would definitely advise not cutting any corners to shave the price because as has been pointed out, the neighbors won't know that your customer cheaped-out, only that the work doesn't look as good as it should.

Lastly, when that inevitable call comes and the prospective customer asks if I can do the job for $300 less, I can say "sure -- with Superpaint instead of Duration". I have clearly spelled out some options, and this gives me a tool to push-back on their angling for a discount that is not in my business model.
Once again, right on point.
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Old 03-19-2011, 10:25 AM   #32
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Quote:
Originally Posted by SterlingPainting View Post
Agree on scope of work, give price, do the job. Everybody wants gold for a bronze price, so I think this will only create headaches and lack of satisfaction for the customer.

They will say to themselves this is more of a silver job, but I payed for gold. Or silver job but they payed for bronze.

I agree with NEPS, just one set of quality and expectations is enough. Besides, if your going into a dump, who's going to want the gold? likewise in a 2 million dollar house, who'll want the bronze? Its common sense.
SP, you are making assumptions I have found to be incorrect. One way I overcome this is to make sure the difference between plans is noticeable. (in house washing scrubbing a gutter to remove black streaks, or cleaning a patio that would not have been touched). the other piece of insurance is psychological and it comes down to this... perception is reality. If people pay more, they will perceive they have gotten better. There have been studies done and books written on the topic. Take the worst wine and put it in a fancy label and charge triple for it and wine snobs will start talking about the incredible flower and bouquet of this fine little glass of ripple.
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Old 03-19-2011, 11:31 AM   #33
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I do agree with you PP about perceived value. I've just done so many jobs in the past where they say they just want a "once over" and "can you do that little bit too?" "It'll only take 10 seconds."

How many times have you heard that? Next thing I know this small easy bronze job is turning into a full makeover.
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