Marketing Confusion


  #1  
Old 02-06-06, 09:17 PM
kbox
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Exclamation Marketing Confusion

I recently had a discussion with a young lady out in Portland who was about to make a big window decision. She was under a 36 hr. timeline (red flag #1) and wanted to spend $10,000 for seven windows (red flag #2), one a garden window, the rest average size windows.

The pitch had her convinced of the following features:

- 50 yrs of research and development in Europe finally reaching America
- pvcP, the second "p" for paintable vinyl
- metal reinforced frame
- "dual-sealed structural foam" spacer

She seemed so deeply snowed by the sales pitch, my instinct screamed "no" while wholly unable to verbalize "why".

Thirty minutes of research revealed the following:

- Said European wonder is actually manufactured in Spokane, Washington by another company of a different name whose website boasts windows with all the same features.
- said spacer is actually the Edgetech SuperSpacer, conceived in Canada and brought to fruition in the good ol' US.

It appears the european brand being sold in this scenario is nothing more than a trademark.

Now tell me, is this okay? Is this typical of the industry? How does one sort through the B.S.? Accurate information is hard enough to come by, "eh"? The windows themselves seem good enough on their own merits, why the "hard" sell?

Sounds like a good topic for a forum....What are your thoughts?

Thanks.

(No offense, but I just posted this same thread in another forum, too)
 
  #2  
Old 02-07-06, 03:12 PM
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I'm not a big fan of high pressure salespeople, no matter what they are selling. Windows, cars, you name it. Basically, it comes down to sales techniques and how moral (or immoral) the salesperson is when it comes to stretching the truth. Getting the sale is the goal and some people will do anything to get it. Salesmen that work on commission also have a tendency to use high pressure techniques and inflated prices, since they get a percentage. Occasionally, the salesmen have nothing to do with the window company itself. They're professional salesmen and have no idea who will be installing the windows. It's my opinion that smaller companies are better in this regard because perhaps the salesman is the "owner" or someone appointed by him. The installers and salesmen know each other and work together to arrive at the best window configurations and sizes, etc. so that the whole project is well orchestrated and there will be no suprises.

Regarding the 36 hour limit, I'm not opposed to setting a time limit for an estimate. Many salesmen want you to sign that night, which is a little out of line. 36 hours is a day and a half, which sounds reasonable to me. The idea is that you want the homeowner to make a decision, because much of the time if they don't make the decision right away, they might decide to buy a new car or something else instead. If they sign up quickly it also reduces the chances of them getting an estimate from someone else. Not that that is a bad thing, but when you are 1 company out of 5, you can see that your chances of getting the contract are reduced. Often, people get so tired and confused after visiting with multiple salesmen that they just want to throw up their arms. I can understand why. Setting a reasonable time limit for an estimate is a good idea, since I've heard of some people calling you up years later, wanting you to do the job for the same price you bid them 2 years ago.

The comment about Europe made me laugh because I think that Americans have this perception that everything in Europe is better- almost like some sort of nostalgia. It may be true that European windows are better designed, but as you seem to have indicated, there's probably nothing European about the windows but the name.
 
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Old 02-08-06, 10:31 PM
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Sounds like typical silliness to me - the process of heating PVC pellets (or powder) and squeezing it through a die was invented in Europe, so lots of companies claim that as their birthright.

Regarding the 36 hour expiration, simply ask what the price will be if you wait until the price expires? It's not like they'll refuse to sell to you.
 
  #4  
Old 02-09-06, 05:18 AM
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While there is no excuse for lying or arm twisting at an estimate people should understand that a free estimate is not free for the person doing the estimating. Its not unusual to drive an hour to and from a potential clients house.

I agree with Xsleeper, its kinda rude to expect an instant signature but giving someone a deadline for a sale price is fair enough, actually its just plain stupid not to do that. We have very good standard prices printed on the contract, and I give people 5 business days to get 10% off then it goes back to the standard price. Not a huge incentive but if your prices are realistic from the start you can't afford to give someone 30% off lol.

An amazing number of shoppers will just get several estimates and buy from the most charismatic one, with no looking at references or even researching online. Add in that some people expect a follow up call before they buy, while some think you must really need the work if you follow up.

A small discount with a deadline is a little nudge to get people to make a decision, and it gives you the option to follow up or not as they will most always call before the discount period is up if they want to buy.

Fair enough considering the salesman has an actual time and money investment in your free estimate.
 
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Old 02-09-06, 05:55 AM
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Good points, Scott.

The thing that sticks in my craw, are all the companies out there that- rather than give an honest bid, with a small discount as a "signing bonus"... you've got lots of compnaies that give these outrageous, overinflated bids, then try to make the customer feel like he's getting a really great deal when you knock 25% off (when in reality that's still overpriced).

I had some friends who got a few bids from some "big companies" and their quotes were astronomical. $25000 for a siding job, that (after a lot of phone calls that could have won the guy an Oscar) they eventually knocked down to about $16000. (still 2 1/2X too much, in my opinion). I know companies need to have a profit margin built in so that they can stay afloat, but thats ridiculous.
 
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Old 02-09-06, 02:42 PM
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Originally Posted by XSleeper
The thing that sticks in my craw, are all the companies out there that- rather than give an honest bid, with a small discount as a "signing bonus"... you've got lots of compnaies that give these outrageous, overinflated bids, then try to make the customer feel like he's getting a really great deal when you knock 25% off (when in reality that's still overpriced).
I don't think it's quite as common any more, but plenty of larger "one night close" companies had subsidiaries (or more often just a different phone number + DBA) that they'd use to recycle leads. If they couldn't cajole you into $1200/hole the first night, they'd pass the "lead" on to the telemarketers and send someone else out to try a cheaper product at $800. Of course the customer thinks he got a better deal and stuck it to the first guy...
 
  #7  
Old 02-09-06, 03:42 PM
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UGH! That's downright dirty.
 
 

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