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Old 03-10-2007, 07:18 PM   #1
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Home Depot


Home Depot is really pushing their installation services in my area. They are advertising all over the place and taking a lot of work away from us smaller guys. "Become one of their installers" is an easy answer, they are all locked up. I heard there are a few national companies that have set up crews in cities and they monopolize the Home Depot installation services. Bottom, line, get on a waiting list to work for them.
My response, I will not spend a single penny in that store anymore. I urge my brother and sister small business owners to do the same!

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Old 03-10-2007, 07:49 PM   #2
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Re: Home Depot


There is another contractor in my area that operates a small supply house. I won't buy from him, because why would I support the competition? Same idea with Lowe's and Home Depot. If you buy from your competitor, you're unwittingly helping them. I guess we've beat this topic to death in the past.
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Old 03-10-2007, 07:57 PM   #3
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Re: Home Depot


Quote:
Originally Posted by MKECONTRACTOR View Post
Home Depot is really pushing their installation services in my area. They are advertising all over the place and taking a lot of work away from us smaller guys. "Become one of their installers" is an easy answer, they are all locked up. I heard there are a few national companies that have set up crews in cities and they monopolize the Home Depot installation services. Bottom, line, get on a waiting list to work for them.
My response, I will not spend a single penny in that store anymore. I urge my brother and sister small business owners to do the same!
Another view point, they are the best thing that ever happened to your business! They charge more for roofing then the average company, thus raising the bar for your industry.

Now you can charge more and deliver more. You make make this a golden egg or the end of the world.
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Old 03-10-2007, 08:17 PM   #4
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Re: Home Depot


doug,

that is pretty ironic isn't it..."I charge all my market can bear"...HD comes in and charges more than everyone else and gets work...."HD is taking work away from us small contractors"

Huh?
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Old 03-10-2007, 08:24 PM   #5
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Re: Home Depot


They charge properly for a correct job to be done, but they usually do not provide the correct job. They just have too many pieces of the pie to split up to ensure the quality control remains its primary focus.

They are sales driven using "watch out for the little contractor" horror stories. They feed on encouraging their customers to be on the lookout for exactly the type of job fullfillment they provide, yet never bear the responsibility for their own actions and deciept.

Eventually, as in Sears Roofing, time will catch up with them. It already has the beginning ground work staged for massively relentless poor custiomer service PR.

I love when they are one of my competitors, not due to their pricing, but by picking their realities apart by only having to establish our true credentials with actual referrals and testimonials from over 20 years of local customers, which they can not and do not provide.

Ed
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Old 03-10-2007, 08:29 PM   #6
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Re: Home Depot


I think it is purely name recognition. We all know it, a lot of people have given our industry a bad name, and as a result of that people are terrified of hiring contractors. I think going with HD offers them a sense of security that they are willing to pay the extra money for, regardless of how good you are, how many references you have, and how many organizations you belong to.
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Old 03-10-2007, 08:32 PM   #7
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Re: Home Depot


Quote:
Originally Posted by mahlere View Post
doug,

that is pretty ironic isn't it..."I charge all my market can bear"...HD comes in and charges more than everyone else and gets work...."HD is taking work away from us small contractors"

Huh?
People can wait for a homeowners roof to leak before they get a call or they can go look for the work. Small contractors wait for the call.

Depot chews up small contractors in their sales pitch, by the time they are done a homeowners would have to be crazy or cheap to do business with one. If you get bored have them out to pitch a product for you. "Buy from us we are the home depot"=90% of their pitch.

If I get time I will produce a cd on how to "see the golden egg" and get a boner that they are in your market. $39.95 usd and $115.00 CD.
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Old 03-10-2007, 08:37 PM   #8
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Re: Home Depot


Quote:
Originally Posted by MKECONTRACTOR View Post
I think it is purely name recognition. We all know it, a lot of people have given our industry a bad name, and as a result of that people are terrified of hiring contractors. I think going with HD offers them a sense of security that they are willing to pay the extra money for, regardless of how good you are, how many references you have, and how many organizations you belong to.
Mike list 10 things that they offer that the average Joe does not offer.


Now list ten things you offer that they can not offer.

Free hint #1. Consumer complaints, spend 1/2 of an hour on-line at consumer complaint web-sites, if you fail to run out of paper printing the complaints, just give up.

Free hint #2 Complaint resolution, when they get a complaint, do they make the customer happy?

I'll be waiting for your lists.
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Old 03-10-2007, 08:39 PM   #9
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Re: Home Depot


Quote:
Originally Posted by mahlere View Post

that is pretty ironic isn't it..."I charge all my market can bear"...

HD comes in and charges more than everyone else and gets work....

"HD is taking work away from us small contractors"

Huh?
Mahlere,

Obviously you have gravely underestimated the ceiling on "How Much Your Market Can Bear".

You should thank HD and others for pointing this out to you, while you are still in business and capable of doing something about it.

Ed
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Old 03-10-2007, 08:54 PM   #10
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Re: Home Depot


Quote:
$39.95 usd and $115.00 CD.
What's this? Rampant discrimination, I say. I'll complain, perhaps to Home Depot if you're going to have them on sale there?
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Old 03-10-2007, 09:02 PM   #11
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Re: Home Depot


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What's this? Rampant discrimination, I say. I'll complain, perhaps to Home Depot if you're going to have them on sale there?

Since I can't sell you guys roofing/siding/windows for your igloos I have to make up for the market loss in other areas. I accept credit cards and will accept CD at a 45% exchange rate.
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Old 03-10-2007, 09:30 PM   #13
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Re: Home Depot


Quote:
Originally Posted by Ed the Roofer View Post
Mahlere,

Obviously you have gravely underestimated the ceiling on "How Much Your Market Can Bear".

You should thank HD and others for pointing this out to you, while you are still in business and capable of doing something about it.

Ed
Ed, i don't underestimate my market...i don't underestimate any market...i was pointing out the irony of all the guys who claim that they have reached their markets limit...essentially, I was making fun of others...sorry
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Old 03-10-2007, 09:38 PM   #14
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Re: Home Depot


Good start, now make the list of ten things that you offer that they can not touch.

The complaints can be #1 and problem resolution can be #10.


Are you seeing the golden egg yet?
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Old 03-10-2007, 10:01 PM   #15
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Re: Home Depot


#2 Materials they don't carry. ELK, TAMKO, etc
#3 You deal with me, the owner, not 5 levels of management that in turn have to deal with the sub contractor
#4 Guaranteed start date
#5 Detailed estimate
#6 The truth
#7 Better pricing
#8 Better Quality
#9 My wit, charm, and good looks.
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Old 03-10-2007, 10:21 PM   #16
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Re: Home Depot


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Originally Posted by MKECONTRACTOR View Post
#2 Materials they don't carry. ELK, TAMKO, etc
#3 You deal with me, the owner, not 5 levels of management that in turn have to deal with the sub contractor
#4 Guaranteed start date
#5 Detailed estimate
#6 The truth
#7 Better pricing
#8 Better Quality
#9 My wit, charm, and good looks.
#2= good, #3=great, #4= how about start and finish dates, #5 they provide the same thing, work on they estimate a roofing job from the ground and not from the roof or some other approach, #6, good, provide client with details, #7 hopefully this means more than just cheaper, offer more/deliver more price alone means donkey dung, #8, just make sure you can provide the client with a list of things you do better---an easy task, #9 I don't know about that one...

Once again with the golden egg thing, everyone who enters your market that charges more and delivers less is the best thing that can happen to your business.

Here's a challenge, how do you offer more and charge more?
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Old 03-10-2007, 10:54 PM   #17
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Re: Home Depot


I don't ever give guaranteed finish dates. I learned that on my very first siding job. (4 hours removing old siding, 2 days installing new, 1/2 day safety cushion, so figure 3 days. What I didnt count on was the NASA engineered, never came across this stuff before or since, super heavy duty, knuckle, blade, and other hand tool busting, caulk that I had to spend 2 WHOLE DAYS REMOVING!!!!!!)

What I do is give them a start date that I know I will be able to make unless it rains 30 days straight (Or run into that caulk on every job before theirs). I give myself enough of a cushion, say I think I can get to it July 1, I tell them the 21st. Then, when I call them June 25th and say "Good news, we are a bit ahead of schedule and can start on July 1st, if that works for you." They go "Oh my god thats great, yeah go ahead and start!" It ups their satisfaction level. And, I know this works because I have had numerous referrals and the new customer says "Mary and Joe said you actually started and finished early, that is unheard of with most builders." I really just started doing it in order to give myself a cushion, how many 2 day roofs end up 4-5 day roofs because of rain? This just happened to be a nice little side benefit.

As far as finish dates, I tell them "This should take x amount of days, but remember there could always be weather delays." Most of my jobs are building garages, I tell them 5 days even though I know it will take 3 1/2 if all goes well. Once again, they expect 5 and have it done when they get home on day 4 and are happy. I am not being misleading, a guy not showing up, a tool or piece of equipment taking a sh*t, or anything can cause a delay and the one thing I do not want to do (besides not give them what they expect) is to take longer than they expect.
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Old 03-10-2007, 11:36 PM   #18
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Re: Home Depot


Quote:
Originally Posted by MKECONTRACTOR View Post
I will not spend a single penny in that store anymore. I urge my brother and sister small business owners to do the same!
They are just so damned convenient when you are in a pinch, and have a crew wating.

Quote:
Originally Posted by mdshunk View Post
There is another contractor in my area that operates a small supply house. I won't buy from him, because why would I support the competition? Same idea with Lowe's and Home Depot. If you buy from your competitor, you're unwittingly helping them. I guess we've beat this topic to death in the past.
There is a sheet metal fabricator in Chicago, they are also an installer which is how they started but I can say with confidence the bluk of their money is now on fabrication and supply. Anyways I wanted a simple standard sized scupper box for roof drainage. I called my local usual supplier to see their price and was quoted $250. I almost shat my pants. I can get them for $60 at the fabricator installer. Sometimes money talks.

Quote:
Originally Posted by dougchips View Post
Another view point, they are the best thing that ever happened to your business! They charge more for roofing then the average company, thus raising the bar for your industry.

Now you can charge more and deliver more. You make make this a golden egg or the end of the world.
This is exactly my standpoint on the situation. I enjoy bidding against them for several reasons. A) if the salesmen didn't sign up the first night there is pretty much no way he ever will. B) The price is nice and high so it raises the "going rate" for everyone else.
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Old 03-11-2007, 01:19 AM   #19
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Re: Home Depot


Regarding DougChips list,

# 2) Elk and Gaf recently merged, so HD will be offering a combination of the 2 companies products.

# 5) From the HD proposals I have seen, they are not detailed at all. It is just a simple bingo punch card formatted form page, where they check off little boxes and write in minor details. It goes beyond vagueness and ambiguity.

To MKEContractor,

# 9) Only in your own dreams and Bizzarro World, for anyone familiar with old Superman comic books.
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Old 03-11-2007, 11:28 AM   #20
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Re: Home Depot


Quote:
Originally Posted by Ed the Roofer View Post
From the HD proposals I have seen, they are not detailed at all. It is just a simple bingo punch card formatted form page, where they check off little boxes and write in minor details. It goes beyond vagueness and ambiguity.
That's how you have to sell when you have salesman who know nothing about the products they are selling.
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