This came across from an advertisement where now Consumers can Buy & Schedule Service. My instinct is AL is looking to expand on the Consumer spend, as opposed the Contractor spend which many contractors here on the forum tend to question.
Here is just a snapshot of what is part of the landing page, and I encourage contractors to be very careful when the next set of solicitations comes for them to be a part of the new AL program since having a homeowner feel you offer a discount before even finding out what the job is is not the way to build your business. Maybe I am wrong
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Reviews are submitted by verified members, not anonymous visitors.
Buy and Schedule services – including discounts of up to 70% - from member-reviewed companies.
Of course 70% sounds nice to get someone (a consumer) to pay to be placed in contact with a contractor, but lets be reasonable. Without a contractor first marking up his normal cost by 200% to 300%, how can anyone even afford to talk 70%?
Sure, 5% and even maybe 10%, but 70% is one step away from just making all contractors go out of business on the job. I'll bet AL will soon start trying to convince they need to lose money on a few jobs to build their AL reputation - but that is not a way anyone should build a company. You do not have to lose money on any job or you are simply going out of business.
It would be great if someone from AL could join this forum discussion to provide a reasoning why 70% is a good starting point. Makes great sense for a Homeowner and terrible sense for a Contractor (in my opinion). It really makes the contractor feel like their services are more and more negotiable, when in fact, a good contractor (just like a doctor or attorney or other white collar provider) does not need to keep negotiating (and definitely 70% is way out there).
I realize AL now needs a way to get a homeowner to spend money, but why does the contractor have to give up something? Why such a large starting point? If you are a good crafts person and a good business person, think twice before thinking about a discount when you may just want to pass on the work. I have spoken to so many customers who were willing to pay the right price to get the right job done. And I have spoken to many of contractor customers who rather work a few more profitable jobs as opposed to just discounting to get work and not make money. Think about it.
Soon we will see "Our contractors pay you to do the job" :laughing:
Here is just a snapshot of what is part of the landing page, and I encourage contractors to be very careful when the next set of solicitations comes for them to be a part of the new AL program since having a homeowner feel you offer a discount before even finding out what the job is is not the way to build your business. Maybe I am wrong
How Angie's List is different
Reviews are submitted by verified members, not anonymous visitors.
Buy and Schedule services – including discounts of up to 70% - from member-reviewed companies.
Of course 70% sounds nice to get someone (a consumer) to pay to be placed in contact with a contractor, but lets be reasonable. Without a contractor first marking up his normal cost by 200% to 300%, how can anyone even afford to talk 70%?
Sure, 5% and even maybe 10%, but 70% is one step away from just making all contractors go out of business on the job. I'll bet AL will soon start trying to convince they need to lose money on a few jobs to build their AL reputation - but that is not a way anyone should build a company. You do not have to lose money on any job or you are simply going out of business.
It would be great if someone from AL could join this forum discussion to provide a reasoning why 70% is a good starting point. Makes great sense for a Homeowner and terrible sense for a Contractor (in my opinion). It really makes the contractor feel like their services are more and more negotiable, when in fact, a good contractor (just like a doctor or attorney or other white collar provider) does not need to keep negotiating (and definitely 70% is way out there).
I realize AL now needs a way to get a homeowner to spend money, but why does the contractor have to give up something? Why such a large starting point? If you are a good crafts person and a good business person, think twice before thinking about a discount when you may just want to pass on the work. I have spoken to so many customers who were willing to pay the right price to get the right job done. And I have spoken to many of contractor customers who rather work a few more profitable jobs as opposed to just discounting to get work and not make money. Think about it.
Soon we will see "Our contractors pay you to do the job" :laughing:
