Installed Sales

dvon104

My sales manager (new)...thinks it is a "great idea" to start selling installed sales and target local homeowners ...I think it sux...we are competeing against are remodeler customer base and I do not want to deal with a HO...I will not make any money (commision only) considering the amount of time I would spend on this...and we have 2 Home Creepos and a Lowes....within a 25 mile radius in of this market...

when I told him this he got ticked and said "WE ARE GOING TO DO IT "
then I replied ..."IF I WANTED TO SELL INSTALLED SALES I WOULD WORK FOR THE BIG BOXES".....as a remodeler if your supplier started really pushing installed sales to your market ...wouldnt you really think about going somewhere else ...I would....or I am just being a "PITA" as he stated about it....

need your input

CharlesD

I had a supplier who dabbled in installed sales at times. It was in his blood since he became a supplier after being in the intalling business.
Once, I called him about a particular off brand siding for an add on to match the existing siding. Low and behold he'd priced the job too, since he's sold and installed the original siding.
After discovering the owners had contacted me too, he bowed out and never charged me for the siding he supplied.
Nice guy.
If you started competing against your customers, IMO, it wouldn't go over very well with them especially if you lowballed bids.

dvon104

Exactly...and we wouldnt low ball the bids per say...I buy window for 100.00 for install sale ....charge HO...129.87 for window ...thats 23 pts of margin...using sub for labor ..so we will not set the price for that end...but quote the job as a package

now....same window that cost me 100.00..to my remodeler...142.85 30 pts of margin ...so that will be a 7% ..dif. Why the difference ?...you got me ....I do not know ...a new pricing structure for the installed sales program is what I am told .

Here is my take ...Do not sell the install....instead refer my customer to the HO...I sell the material to the remodeler ..who is and will be a repeat customer and we get each other more business ...and we will make the extra 7% ..with out the liability of me going out to jobsite everyday to make sure some one is there and HO is happy...I get paid to sell and generate new business ...if I am babysitting a installation every day ..I am losing money as a rep....

I WILL not sell an install...I will make it to expensive to the HO...and then refer to MY remodeler base to the HO...not another salesman's remodeler