Home Depot Starts Painting - Contractor Talk - Professional Construction and Remodeling Forum

TimNJ · 01-05-2006, 06:32 PM

I was in a Home Depot today and right on the counter was a placard telling how HD was now offering int. & ext. painting including faux finishes. I am in central NJ and curious if this is a regional test or if they are doing this all over?

**Cole** · 01-05-2006, 06:36 PM

News to me but I figured they would try to break into the painting market.

Brian · 01-05-2006, 07:05 PM

They've been offering the service in Houston for about 2 months, and longer in other areas from what I've heard. This is likely to be national before long.

Brian Phillips

Tom R · 01-05-2006, 07:08 PM

I wasn't even aware of that, Tim, - - guess we'll be seein' a lot of orange houses around soon, huh??

**ProWallGuy** · 01-05-2006, 07:27 PM

This has been a hot topic in the paint industry for over a year now.
Some say it's time to get with the program to stay in business, and some aren't scared at all. Most HD contractor's are a joke to most I've chatted with. The only plus is it might bring the playing field up a notch in those areas.

**Teetorbilt** · 01-05-2006, 07:57 PM

Many years ago I thought that being tied into national corp. might be a good idea. I was never more wrong.

Here, they outsource to another co. who sets YOUR sched. and is rigid! Never mind that you are currently getting 2" of rain per hr. THE JOB NEEDS TO BE DONE!

Think of it this way. Box stores atractiveness is LOWEST PRICE! What kind of quality do you expect from the lowest bidder?

George Z · 01-05-2006, 08:18 PM

Quote:

Originally Posted by Teetorbilt

Many years ago I thought that being tied into national corp. might be a good idea. I was never more wrong.

Here, they outsource to another co. who sets YOUR sched. and is rigid! Never mind that you are currently getting 2" of rain per hr. THE JOB NEEDS TO BE DONE!

Think of it this way. Box stores atractiveness is LOWEST PRICE! What kind of quality do you expect from the lowest bidder?

They won't be the lowest bidder Teetor.
Here their hourly is over $60 to $70 which is hardly low for a paint
contractor. The company doing the painting for them, New Image Painting
has to pay over $20 per hour to the middle man (Home Depot).
I agree about quality. People that used to be in the program have said
that quality is not a priority. They have a bulletproof warranty
so consumers are out of luck. Like any other major brand,
they live and die with their reputation. And not too many
happy stories are coming out of Home Depot painting services.

**Teetorbilt** · 01-05-2006, 08:50 PM

George, re-read and esplain. You must be used to dealing with HD. They are a little more coherent though.

**slickshift** · 01-05-2006, 08:55 PM

Actually I think the attractiveness to a consumer is two-fold

A) One is the perceived low price
Often an assumed low price
Most of the H/Os I've talked with that had H/D contractors doing some parts of the remodel had know idea they weren't getting that good of a deal

Example:
One was telling me about the great price she got on the carpet
Looking at the per sq ft price it looked good
As we're chatting about it, more things come to light
It was half the price of the new carpet to remove the old one
That didn't include removal from the premises and disposal
That was another fee equal to half the removal fee
They came to a water heater in the closet-$120 added to the bill
...to cut around the heater
Her $600 carpet was over $1200 in real money
I know two carpet guys in town where it would've been $800 complete, removal, disposal, and they wouldn't have blown off 7 scheduled appts. to install

But people still love the Big Orange, they can't get enough

B) The perceived longevity of the company and name recognition
Now, I say perceived...
We all know the company has been around
We can pretty much tell they'll be around for a while
H/Os like that
The Company will still be there
Now I say perceived because that company is only as good as the person that is working there today

Hypothetical example:
Maybe you got a good floor girl today, maybe the wood guy ordered what you wanted today
Maybe the paint kid sounded like he knew what he was talking about, and maybe you got lucky and he didn't screw anything up
That doesn't mean you'll ever see the floor girl again, or the Company won't deny the wood guy's order, and not tell you for 4 weeks
That doesn't mean the paint kid didn't just hear the story he gave you from his supervisor just before he was shoved on the floor with 20 minutes training

But people just love the Big Orange

Perceived low prices and National Brand Name comfortability
It's a attractive safety net for a lot of on-the-fencers to fall into
People just love the Big Orange

Brian · 01-05-2006, 09:02 PM

George,

I agree with your assessment.

Many major companies, such as Sears, have tried this before and failed. I don't think Home Depot will be any different.

I think the failure results from two fundamental mistakes on their part.

1. They fail to realize that painting, perhaps more than any other trade, is a service business. Other trades give a business an opportunity to differentiate itself on the products it offers and installs. In painting, we seldom have such an opportunity. All of us can buy the same products. Certainly this is true of other trades, but I think that there is less product differentiation in our industry than others. That brings it down to service.

2. Painting, perhaps more than any other trade, is often a DIY project. Most people have some experience painting, and many, if not most, regard it as a "simple" project. So, for many people, if they are going to pay someone to paint their home, they want a good service experience. See point 1.

I can see the allure to Sears or Home Depot. They have a good reputation, installation services fits their business model, etc. It's a reasonable way to grow their business. But again, I think they are missing a very fundamental fact about our industry.

In the short term, they are going to put some contractors out of business. Not meaning to be cruel, but these will likely be the marginal contractors-- those who own a job and not a business. In the long term, Home Depot will likely be calling others to clean up their mess in a few years. (I was on Sears preferred contractor list for a few years when they pulled out of our market.)

I could be totally wrong and perhaps Home Depot will succeed where others have failed, but I have no evidence of that at this time.

Brian Phillips

George Z · 01-05-2006, 09:20 PM

Quote:

Originally Posted by Teetorbilt

George, re-read and esplain. You must be used to dealing with HD. They are a little more coherent though.

Sorry Teetor, may be I didn't get your point (obviously)
I thought you meant they were low bidders

**Floorwizard** · 01-05-2006, 09:26 PM

Listen folks,

Competing with Home Depot or Lowes is not a hard thing to do unless the customers you deal with are those type of clients.
There are big box customers, and then there should be YOUR customers.
It's that simple.

How to spot YOUR customers:
They can percieve value. Period.

Keep your self esteem up, and your done. If not, then let em shop there and move on to the next waiting client.

Typically the wealthy can percieve value well.

Brian · 01-05-2006, 09:35 PM

Florcraft,

Couldn't agree more. We will run into those people, but they aren't our customers. That's their loss not mine. I need customers, but not any one particular customer.

Brian Phillips

LandscapePro · 01-05-2006, 09:42 PM

Flyer in the local paper here today from H.D. lists the following Installation Services Available:

Bathliners
Cabinet Refacing
Custom Home Orginization
Decks
Garage Floor Coating
Gutters
Heating and Cooling Systems
Interior/Exterior Painting
*My Personal Favorite* Landscaping and Design Services
Play Systems
Roofing
Sheds and Storage Buildings
Siding
Solar Power
* Personal Favorite #2* Stone and Brick Pavers
Sunrooms
Water Treatment Systems
Water Heaters
Windows

I remember when the grocery people laughed at the idea that Wally-World would ever sell groceries. Bulk items of canned goods perhaps, but a full service grocery? Never. Remember that profit is made in the grocery industry for the most part on the meat, fresh produce, and floral aisle.

Anybody been to a Super Center lately?

As a past Regional Sales Manager for some really major players in the commercial horticulture industry, I can tell you with no doubt that ALL of the above programs won't last. They were never meant to.

The "installation" program is all about gaining market share in the products used to complete such services and controlling which "brands" of materials see the most exposure to the marketplace. Their cut on the labor is a bonus.

They do have to walk a fine line and not (hack) off the contractors that are buying products from them, but that's been weighed against the increase in their marketshare of a particular product line.

At some point a decision will be made as to the success of each service offered. They'll keep the ones they want and phase out / drop the ones that aren't performing to their expectations.

Look for Lowes, Home Quarters, and the rest of these guys to follow suit. If they don't, H.D. gains more clout (read better pricing) from the vendors because they are driving the market.

We're gonna have to deal with it. I don't see this trend changing any time soon as the business cycle for this "product" is still in it's early stages.

Mike
La. Landscape Contractor #2576

go dart · 01-05-2006, 10:09 PM

just another reason to dislike those bast@#%s. lets face it they are their own worst enemy. anybody ever compete against expo? pay for design, pay entire job up front, buy matls cheaper than anyone on earth, and out of business. I'm proud my family business of 49 yrs has out lasted the likes of handy dan, payless cashways, home quarters and that k-mart thing. do i buy any materials from depot? sadly yes but mostly hot shots.

Richie-C · 01-09-2006, 07:46 PM

Tim,

I have seen the advertising here in New York as well. Picked up a brochure several months ago. However, I have yet to see any activity. I've been asking around to see if anyone knows who is contracting for them.

I feel bad for any of the contractors who deal with them. I have two buddies who both were HD contractors - one flooring and one windows and doors--they both bailed after HD screwed them but good.

Richie

Homescapes-DBD · 01-09-2006, 08:36 PM

Up here in Canada they are doing that aswell and have been doing it for quite some time. However they do sub out the work and take a 7o% cut. Then we get called to fix...lol

Mike Finley · 01-09-2006, 08:49 PM

We can all talk about how bad or good contractor services from HD is or isn't but regardless of if they are higher, lower, the same, lower quality, higher quality there is a big lesson in all this that everyone should take away from it.

A customers reality is mostly perception.

Ponder, contemplate, examine why a customer chooses to do business with HD's contractor services, then apply those answers to your own business. That's the big lesson here. HD good/bad? Who cares, they have shown all of us the way. Customers will pay too little or too much, but they will want to do business with you if your image portrays yourself as a sure thing. That's the big lesson to be learned here. Customers go with HD contractor services because their preception is it is a sure thing, it's going to be hassle free, it's going to work out and be okay no matter what. - get your business to look like that in the eyes of the consumer and you will have it made.

Peladu · 01-09-2006, 10:42 PM

Walked into my son’s friends house and was in the Kitchen. The friends mother had the house up foe sale and just had the kitchen redone (sadly I was too busy to help them out). Looking at the cabinets I said to her, “Your husband did a pretty good job for a computer guy, just has to finish up and he’s done.” She looked at me and said, “What are you talking about, Home Depot installed these.” She started asking me what I saw wrong as soon as she noticed my mouth drop open in disbelief. I didn’t have the heart to point out everything to her, so I showed her a couple spots and left it at that. I was shocked that Home Depot is getting away with this type of work. Later, talking with her, she said that the two Polish guys couldn’t speak any English and wore sandals and dress pants while working. So at least she laughed about something, and her house did sell.

Mike Finley · 01-10-2006, 01:40 AM

Quote:

Originally Posted by Peladu

She looked at me and said, “What are you talking about, Home Depot installed these.” She started asking me what I saw wrong as soon as she noticed my mouth drop open in disbelief.

Perfect example. The customer didn't know any thing was wrong until you told her so.

Customers reality = customers perception.