[LouisZerr]

Hey guys…


I’m seeking some advice for an upcoming meeting I am having with my regional home builders association. The meeting is for associates and subs to talk about their services(or discounts) they will offer or provide for the parade/tour of homes . At this meeting there will be approximately 20 builders. 2 of the builders at this meeting I already do work for/with so I basically will be addressing the remaining 18.

I plan on talking about:

My company’s commitment to being ‘green’ and the use of green products and practices that we use.

The benefits of being green (builder, homeowner, and painter)

My company’s quality and service (which the 2 builders I do work for already said they will vouch for).

Where I’m struggling is whether or not to offer discounts. My standard markup on products is 15% and my markup on labor varies from 11%-30%. My point of going to the meeting is to hopefully have the opportunity to pick up more work from a couple more contractors. When I’ve asked guys in other trades that have gone to these meetings in the past, they tell me that the majority of the builders want to hear ‘how much am I going to save” then worry about quality:wallbash: . I know that the discount is what they want. I know it’s their work I want.

So do I offer “X%” discount on work? Discount material? I’m willing to do both, but only on these houses that are on the tour. Is this a good hook to try and get these jobs?

To answer a few questions: Yes, I can afford to offer 10% off of labor and/or have zero markup on materials. Do I really want to? No, but I would do it if the house will be on the tour and the builder knows that his other projects don’t have the discount. Is it wise to look at the 10% discount as an investment that may yield that 10% plus 1%-20% return on future jobs? I had 3 houses on the tour last year and received great exposure. Attendance from last years event was over 3500 people and I did line up work(repaint) from last years event.

Any help or advice or different angles you guys could provide would be great. I’m sure I’m missing a ton of variables. Thanks

Austin
myriversedge at hotmail.com

 

[Brian]

Austin,

If I were in your shoes I would focus on the back end potential of this.

Let's say the builder does a small community of 12 homes (this is common in Houston). You price the new construction so you make a reasonable profit, but maybe not your normal profit.

At the same time, you market yourself to the new home buyer, as well as the HOA. You can put color on the wall before they move in, offer an exterior maintenance program (for both the individual owners and the HOA), etc. You've now created a significant client base with lots of repeat work.

There is obviously a lot involved in doing this. It takes some savvy marketing, a very tight operation, a good marketing plan, and above all, knowing your numbers.

Brian Phillips

 

[Kelly Painting]

Wow....I wish I was having problems like that right now.

 

[Tmrrptr]

Wow....I wish I was having problems like that right now.

Yah!


...Louis,

I don't think conversation at the meeting will turn out as you expect...

Either way, don't walk in the door and tell people you will give them a discount. You'll be pinned to that technique for getting work forever.

Just tell them all what nice people they are and how you'd like to be just like them. You might say you have been getting more calls for eco products and you enjoy applying them.

 

[PainterKevin]

Based on how you described the event you are attending, I assume that you will not be the only painter in attendance that is vying for the builders' business. Given this factor, you might want to think that maybe you don't need a discount to get work from these builders. If you are already the least expensive painter out of the group, then a discount would only hurt you as opposed to help you.

In addition, when talking about your commitment to be green, are you certain this is important to the builders you are wanting to do work with? If it is not, generally the greener you are, the higher your costs. Just saying to make sure that you know your target audience. If green is not important to them, I would take a different direction.

 

[Joewho]

Builders have a lot on their minds, and lots of subs to deal with.

Interest in green products is still a regional out west and local in the east.
If you're in California or nearby, there may be more interest in green products at the builders level. Otherwise, it's contrary to low pricing.

The first thing that poppped into my mind is how your current GC's are going to react when you announce discounts to GC's you haven't even worked for. I would try to pitch the discounts to the current guys, and let the rest of them know about it.

 

[bikerboy]

Never be as good as your last price!

Demonstrate the "value" of dealing with your company. Finish projects on time. Clean and respectful employees. Membership in professional associations. Adherence to industry standards.
You have 2 customers there already, ask them why they like dealing with you and pass that on to the other 18. In fact those two GC's you deal with are built in on site in your face referals. Ask if they are willing to talk to the others about the value of dealing with you.

 

[LouisZerr]

Thanks for your input guys. I really appreciate it. The meeting is this Thursday and if you guys like, I will report back.


Thanks again,

Austin

 

[Tmrrptr]

We'd all be very interested in hearing your report!

Thank you!

 

[Wing 54]

Send me some of those problems please. On a serious note though don't go in and offer your final price first. If you already have 2 of the builders, that's not a bad start, and secondly if you have to discount someone else, are you gonna go back and do the same for everyone?

 

[RCP]

How did it go?

 

[LouisZerr]

Here's an update for you guys...

I stayed with my original plan of talking about 'green' benefits and the quality and service my company provides. Didn't mention price one bit during my presentation. There ended up only being 13 contractors there and 2 of them I already do work for. I was the only painting contractor in attendence so I felt a lot better about not mentioning pricing or discount(s).

After hearing all the presentations from the other vendors/subs and they were all throwing deals out there, I thought I made a mistake on not doing the same. Suprisingly after the meeting was done, I was approached by 3 contractors and no one asked about pricing or deals. They were really interested in quality. These guys build some really nice stuff. I already called these 3 back today and 1 already said to come by his office Monday to review 3 sets of house plans.

So I would say that I basically spent 3 minutes giving a cold call to 11 contractors and had pretty good success. It was actually refreshing to not get badgered about pricing or how cheap can you do it. If I can close even one of these deals I would consider it a great success.

Thanks again for your input guys

Austin

 

[Housepainter]

I just submitted 2 bids this week to a General Contractor that basically said he was tired of the deals being offered. On one of his recent jobs he let the deal makers go and he and several of his regular crew completed the painting.

 

[vermontpainter]

good deal

 

[gcs]

Hey guys, I need to know what would be the best painting association to go with for my new business...

Thanks

 

[C. VASUDEVAN]

Good luck austin, quality job gets noticed and your name will automatically pop up when ever painting work is needed.