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