XYZ Is Cheaper And Doing The Same Thing As You

 
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Old 09-15-2006, 01:23 PM   #1
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XYZ Is Cheaper And Doing The Same Thing As You


So I'm doing my call backs wednesday while it rains... basically calling everyone on my list who hasn't told me yes or no. One specific gentleman calls me back a few hours after I left a message on his machine. His message was similiar to "XYZ Remodeling company said is doing the same thing but they are doing it for $8,000 even." My price was $9,312. That was kind of shocking, while I usually expect to be a bit higher than everyone, not $1,300 higher.

So anyways I gave him my usual response. Scope of work and quality of materials will dictate price. He insisted they were doing the same. I asked him to email me their proposal so I could review it so that he could make an apples to apples comparison.

Anyways take a guess at what I found? I found a full page long list of differences between their system and my own.

Check it out:
Quote:
Originally Posted by Grumpy's Roofing
Ervin,

Thank you for this copy. I would like to point out quite a few differences between their proposal and ours. I think our roof is a much better system.

If you look at line #3 of their proposal you will see they are only installing 3' of ice shield at your gutter lines. We plan to install 6' of ice shield at your over hang. The reason we plan to install 6', instead of 3', is primarily because of the pitch of your roof. 3', when extended from your gutterline, won't cover very much past your exterior wall, thus it is primarily useless.

Also I would like to point out that they are installing ice shield ONLY at your gutter lines and valleys, while we are installing ice shield at all the problem areas. I feel this is very important, by installing ice shield in the problem areas, it's like cheap insurance and allows me to sleep easy knowing your roof will never leak.

If you look at line #4 you will see that this roofer plans to install ShingleMate. This is one of the synthetic products I explained to you that I am not comfortable installing due to it's instability. Also it is listed as a 29 Lb. felt and this is untrue. It is actually rated as a 15 Lb. equivalent, and actually weighs less than 8 Lbs per square. This is the direct link to the GAF product data, check the bottom of page 2 http://www.gaf.com/Content/Documents/20101.pdf

Line #6 speaks of a "boston style" hip and ridge. What this means is the roofer buys some 3-tab style shingles which are close in color, but not exact, and they cut them up and use those shingles to cover your hip and ridge. If you were to ask this roofer to install Timbertex, the exact color matching hip and ridge accessory for the Timberline shingle, I can almost guarantee he would raise his price. I personally think it looks tacky when I see the roof one color and the hips another color. It does definetly stand out.

Line #7 speaks of installing a ridge vent which can be ok, assuming this roofer is to remove your existing ventilation. Otherwise you will have major ventilation problems in the future. All ventilation manufacturers are VERY specific about that fact. At this site http://www.airvent.com/homeowner/res...shooting.shtml There are two questions on the page which specifically pertain to your roof. One question discusses gable vents and another discusses attic fans. In both cases the manufacturer is specific in stating NOT to mix ventilation types. The gable vents must be covered and the fans must be removed.

Line #9 talks about a "surface mounted" chimney flashing. This is not the proper way to install chimney flashings. Chimney flashings must be stepped with the mortar joint. Surface mounted flashings are more dependant on caulks and sealants to keep water out. While we do caulk our stepped flashing, the joint is much more water tight because it is tucked into the mortar joint. When the caulk finally wears away we have a secondary layer of protection being that tucking into the joint. Also, we are first installing the ice shield around the chimney before installing any metal, they are not.

Line #11 discusses the skylights to be installed, but does not list a manufacturer or model type. Also you requested one vented skylight and this roofer also does not list weather the skylight will fixed or
operational/vented. Infact they are NOT buying the skylights while I am supplying all labor, materials and permits at no additional cost. My price included purchasing those 2 skylights.

Operational skylights do cost more, so if you have changed your mind and would like one fixed, I can save you some money there. Also their proposal does not make any mention of any interior work, such as drywall and painting.

The labor warranty is only 7 years. Our warranty is 10 years, and we are local. The 10-year GAF warranty listed is a gimmick, in my opinion, by the manufacturer. The sure start warranty DOES NOT cover leaks! The sure start warranty does cover the cost of labor if the shingles were to fail. Shingle failure is something I have seen only once in my almost 9 years roofing. As I said, I feel it is a gimmick, but if you were to choose a certainteed shingle, I can offer you a very similar warranty since we are certified by that manufacturer.

Their proposal makes no mention of how they intend to protect your property before the tear off. I have seen far too many roofing companies simply start tearing off the roof without protection. As I had told you when we met, if your property isn't tarped there will be alot of left over debris in all your bushes. We will make sure everything is as clean when we leave as it is when we start!

I am certified by Certainteed, a major manufacturer of roofing shingles. I am also certified also certified by Air Vent a manufacturer of only attic ventilation systems. We are members of the National Roofing
Contractor's Association and we specialize in exterior work, not general home remodeling. Though we do roofing and siding, we do more roofing than anything else.

I am eager to be your roofer and willing to do what ever is within my power to earn your business.
Comments?


Last edited by Grumpy; 09-15-2006 at 02:09 PM.
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Old 09-15-2006, 02:38 PM   #2
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Re: XYZ Is Cheaper And Doing The Same Thing As You


How he could think that your bid was exactly the same is amazing to me. Just let the ignorant homeowner get a crappy roof job. Next time he will call you. Or tell his neighbors about you instead of the guy he used.
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Old 09-15-2006, 02:47 PM   #3
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Grumpy, I wish I could do that. Most customers would never give me someone else's quote.
Your rebuttal is clear, concise, and I presume factual (I'm not a roofer). If it was me, I wouldn't hesitate to call you back and offer to "split the difference" (LOL)
I've seen quotes written on the back of a business card "300 sq ft deck: $5000". I have to compete against that sort of thing. I do like you: a plan, a detailed list of specifications, a schedule of payments, a list of references, and such. Still, I sometimes lose by $50 bucks!

What I REALLY hate is when they say" Steve, we would really rather deal with a professional company like you. You really seem to know what you are doing, and we love your design. So, if you can match the price, we'll give you the job!" Of course, that price is 20% less than mine. What do you do?!!
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Last edited by Stone Mountain; 09-15-2006 at 02:51 PM.
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Old 09-15-2006, 03:37 PM   #4
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Grumpy -
Excellent letter. It is clear and concise. I am not sure if you sent it yet - but I just wanted to show ya a typo I underlined. Also, I don't care for your closing line. I would put something along the lines of


I hope this information has clarified your concerns between the two proposals. We at Grumpy Co. pride ourselves in our professional and curteous workmanship, our attention to detail, and our excellent history of customer satisfaction. We look forward to the opportunity to be your roofing company.




Quote:
Line #11 discusses the skylights to be installed, but does not list a manufacturer or model type. Also you requested one vented skylight and this roofer also does not list weather the skylight will fixed or
operational/vented.
Infact they are NOT buying the skylights while I am supplying all labor, materials and permits at no additional cost. My price included purchasing those 2 skylights.
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Old 09-15-2006, 03:53 PM   #5
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Quote:
Originally Posted by Debookkeeper View Post
Grumpy -
Excellent letter. It is clear and concise. I am not sure if you sent it yet - but I just wanted to show ya a typo I underlined. Also, I don't care for your closing line. I would put something along the lines of


I hope this information has clarified your concerns between the two proposals. We at Grumpy Co. pride ourselves in our professional and curteous workmanship, our attention to detail, and our excellent history of customer satisfaction. We look forward to the opportunity to be your roofing company.

Just wanted to show you a typo too.
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Old 09-15-2006, 03:55 PM   #6
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Re: XYZ Is Cheaper And Doing The Same Thing As You


I think that was an excellent response and attempt at educating the consumer
I hope they appreciate it

I personally enjoy being able to break down others bids like that for potential customers

Often they become actual customers
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Old 09-15-2006, 04:00 PM   #7
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Quote:
Originally Posted by Hammatime View Post
Just wanted to show you a typo too.


COURTEOUS.. LOL!! I knew that - just didn't want Grumpy to feel bad, sheesh!

Now come closer so I can shove that bar of soap in your mouth further. Or is it a hockey puck?
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Old 09-15-2006, 04:06 PM   #8
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Re: XYZ Is Cheaper And Doing The Same Thing As You


It's Lifebouy! Yuck!! I'll shut up now.
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Old 09-15-2006, 04:07 PM   #9
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Quote:
Originally Posted by Hammatime View Post
It's Lifebouy! Yuck!! I'll shut up now.
It's STILL SOAP!!
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Old 09-15-2006, 04:37 PM   #10
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Re: XYZ Is Cheaper And Doing The Same Thing As You


I'm a bad boy!! TGIF!!
Only two more work days left in the week.
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Old 09-15-2006, 05:07 PM   #11
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Re: XYZ Is Cheaper And Doing The Same Thing As You


I can see how a customer would have thought it was the "same thing" before you sent your letter/email. He wanted a roof and two skylights. You said you'd install a roof and two skylights, and so did the other guy. To him, it's the same thing. Construction sales is more education and less sales. Good job Grumpy!
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Old 09-15-2006, 05:34 PM   #12
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Yeah, excellent follow up.

But let me jump on tha bandwagon with:

Quote:
Originally Posted by Grumpy View Post
I am certified by Certainteed, a major manufacturer of roofing shingles. I am also certified also certified by Air Vent;
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Old 09-15-2006, 08:39 PM   #13
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Nice follow up letter, very informative.

Did you get the job?
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Old 09-16-2006, 09:50 AM   #14
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Re: XYZ Is Cheaper And Doing The Same Thing As You


So far no news. I have a cold, caught from my daughter, but I intend to call him today and ask if he fully understands my last email.


MD, I'm still confused how he could think it was the same thing because all he had to do was read our proposals and see it's not. We both gave clear scopes of work. I understand what youa re saying though. In his mind either way he is getting a roof with skylights.

Thanks for all the typo info. Obviously somehow some of it slipped through Outlook's spellc heck. I live by spell check, as everyone who has read any of my posts can understand why.
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Old 09-16-2006, 10:08 AM   #15
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Yeah the technical aspects may be blurred in his mind
He's reading "blah blah blah skylights, blah blah blah roof"


...or it's possible he was just trying to get you to come down in price
But usually those don't give up the other proposals so easily
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Old 09-16-2006, 10:28 AM   #16
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Quote:
Originally Posted by slickshift View Post
...or it's possible he was just trying to get you to come down in price
But usually those don't give up the other proposals so easily
Exactly what I was thinking, which is usually why I call their bluff and ask to see the proposal.

Realistically I could knock off 16% and still make my desired profit margin, 11% is what I pay my salesmen, and 5% is marked up for negotiation. However I'm playing hard ball, and he's going to have to work for that 5%. There's no way I am waiving my commission though!
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Old 09-16-2006, 08:37 PM   #17
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Re: XYZ Is Cheaper And Doing The Same Thing As You


Grumpy,

These types of potential clients have two options with my company. They get the work done by us at our price (no negotiations except for change in scope of work) or they can take their chances with another company.

Your rebuttal to the other companies estimate was excellent. Now what you need to do is let them come to you so you do not look desperate. When they call back your intial price is firm.
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Old 09-16-2006, 08:55 PM   #18
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Re: XYZ Is Cheaper And Doing The Same Thing As You


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... Now what you need to do is let them come to you so you do not look desperate. When they call back your intial price is firm.
Why do you say this? Sounds like an ego thing. If I needed work, I don't care if they thought I was desperate or not. I'd scrap for every spec of work if I had to.
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Old 09-16-2006, 09:02 PM   #19
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Re: XYZ Is Cheaper And Doing The Same Thing As You


there's really not much you can do but cus the homeowner out while in your truck.
When it comes to that I let them know, there's plenty of goofs that'll play beat my price, so keep my card next to your lowest bidders contract. I do repairwork also.

You'll get the business when the lowballers screw up.
Then you can double the price.
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Old 09-16-2006, 09:39 PM   #20
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Re: XYZ Is Cheaper And Doing The Same Thing As You


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Why do you say this? Sounds like an ego thing. If I needed work, I don't care if they thought I was desperate or not. I'd scrap for every spec of work if I had to.

Not an ego thing, just an experience thing.

In Grumpys senario (which I have been in many times), he has already rebutted the price challenge/question raised by HO.

No need to do anymore follow up cuz it will probably lead to the senario Stone Mountain eluded to earlier in this post, "We like you better but can you do it for the other companies lower price?"

Hope this helps.
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