I've really been struggling with this one and its cost me a few customers. Im in a bit of brain lock and need other service companies opinions.
The most common scenario is: "Ms. Jones, you need a new pool cleaner, yours is dead and beyond repair".
"Okay Mike, what kind of cost am I looking at".
"For the entry level cleaner $599. For its superior big brother $1300".
"Okay Mike, let me think about it". What are the models of the cleaners you propose?"
Reply A from Mike: "The Polaris 360 and the Polaris 280".
Three days later... "I can get it for $350 on the internet Mike, can you meet that?"
"No Ms. Jones I cannot. That's less than what I can buy it for at wholesale".
If its a 360 its a lost sale for sure. If its a 280 I have a chance because of the booster pump, replumbing, etc to install.
Reply B from Mike (cringing) : "I'm sorry Ms. Jones, I cant share the model numbers with you. I don't give my expertise and advice away for free".
"What? You want me to by something without checking the reviews first?"
I could really use some input on how ya'all handle this one because I know you get it all the time.
Cleaners are the big killer and I've almost given up on them but its a big issue with cleaner bags, filter elements, water temp sensors, etc.
I am as honest as they come and truly enjoy providing a service for my customers but I really feel taken advantage of when I inform them of an issue and then they want specifics so they can put it out for bid.
Thank you in advance for your input,
Mike
Replies
I tell them to go ahead and shop cleaners straight up there no money in them for me,Just the big guys like lesslie"s working on there free cleaner profit. I tell them some stuff you can get and some stuff not a good idea. It really is a bad deal not fair for service people.
This is a situation that I've been in before and my first thought (as it always is) is offer the customer the BEST solution for their situation....give them what they need!....within reason!!
Customer service and trust is what I begin to "sell" them at this point...sure I might lose a product sell and even an install.... but there is going to come a time that they will not have the time to research for a better price or wait for parts or product to be sent to them.....I'll be the first one they turn to.
Everything in our world is becoming very impersonal.....I still believe that our customers, "the GOOD ones", want that handshake and that one on one conversation.....especially when it comes to there backyards. This is the same reason whenever I meet and offer my services to a customer for the first time I remove my sunglasses!!!! Just old-school like that Iguess.
Hope it helps a bit.
Thanks
I always welcome my customers to shop and purchase products on their own if that's what they are interested in doing...I never turn down an opportunity to show up on a job and just bust out my installation skills and charge for my time and material...in most cases I am able to make as much or almost as much in my profits...the difference is usually negligible and I will usually follow up with a filter cleaning charge or some algaecide billings on the following invoice just to make myself feel better...hope that helps, Mike =))
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I recently needed a part for a Whirlpool stove. There was no real advantage to purchase it online as opposed to a local parts store. I did find a $10 difference between the local stores. I ordered from Mar Beck and gave them my credit card. The manufacturers limit who gets their products and the product supply chain between the factory and the consumer. I paid $28 for what seemed like a $5 part.
Why is the pool biz so much different? Must we sell a $5 part for $5.03?
What manufacturer are you dropping due to internet policies??
I have a couple of suggestions for you as I came to the realization along time ago, that the internet would greatly impact selling customers replacement parts. I myself shop the net while comparing costs from my supplier. Without a doubt I can purchase most things online for less than the supply house. So I now use the same shoppers tactics and show the branch manager what I can get the part for and 9 times out of 10 he'll come close enough that the convenience is well worth the few extra bucks. Which allows me to keep my customers sale on my books. This was especially helpful over the past 4 months with sale and installation of 9 Pentair VS Pumps #011018, an online distributor which was within a 40 min one way trip of me was selling them for $809.00 plus tax. I was able to get them for $819.00 plus tax from my local distributor by simple asking the manager discreetly if he could match the price, and for $10.00 more it well worth it saving what could be a 3 hour trip for $10.00 less.
That's my suggestion to help you out with pricing issues for one, however on cleaners I give them away at cost plus maybe $10.00 for time and dropping them in the pool since they are only going to make my job easier. Now to directly answer your question I solved that problem long ago by placing the following paragraph in my service agreement that my customers receive.
"Internet Prices: We are often asked if we will match the prices of the "low price,no service,warehouse" internet stores, we do not as we only purchase from local distributors which in turn, helps our local economy and in the unlikely event of faulty products or returns, the transactions can be taken care of within a day or two, compared to what could be months with an online purchase. Also, as part of our service, we are not only selling the part, but also diagnosing the problem and installing the part, which are additional services the Internet stores do not provide for you in their pricing."
I would also suggest you give them prices "including installation" so in the event they say they can get the pump for x amount of dollars you can increase your installation charge accordingly to compensate for the difference along with stating to them there will be no installation warranty on any products not purchased through you. Ever since taking this approach I have yet to have a client insist on purchasing the product online most clients say it's not worth the hassle to go online at that point.
Good luck and remember to ask your branch manger for some better pricing if you need it. After all the worst they can say is no!
Hi Mark,
duh, I hadn't considered that! Great point and I'll go to work on my local distributor.
Take care and thank you for the great input,
Mike
No problem, that's what I'm here for.
And to continue on my never ending quest of pool knowledge of course.
P.S. Make sure you ask your Branch MANAGER, not the "MANGER" they're harder to deal with. lol (half asleep when I typed that)
Take care,
Mark
Thank you to everyone for taking the time to share. I value all of your input and really appreciate it.
As of today and based on your feedback (and I'm sure this will change as things continue to evolve) I've decided to implement a $40 diagnostic/research fee- and remember, this is for weekly service customers only. If they hire me for the repair I credit it towards the repair. When it comes to cleaners they will almost assuredly not hire us but at least I make $40 for the advice. I think that's fair to them and (guuulp) fair to me (the days of 100% markup on most parts are gone...)
Its a tough pill to swallow but it is reality. I've always relied on the soft sell and my reputation but I guess I'm finally going to have to do some real selling. I really like Alan Butters response about "added value". I need to verbalize these added values to the my customers.
This isn't going away so I appreciate y'all posting success stories as they occur.
Sincerely,
Mike Stinson
Mike the Poolman
Folsom, CA
Cleaners in particular are tough, but there are a few ways to still get the sale. Let your customer know that your price includes pick up, delivery and any calibration needed at installation. Have them check to see that the online merchant is including shipping, as that can contribute quite a bit to the actual cost, and remind them that they will need to install (and possibly troubleshoot) the cleaner once it arrives or pay you to do that.
Cleaners are probably the toughest sale as pretty much anyone can install them. That being said, if you let your customer know that they do occasionally need some tweaking (valve adjustment for suction, weight placement, etc.) and you include that in your price, Let them know that you can also pick it up locally and install it the same day, without waiting for it to arrive. Many times the "additional cost" for your expertise will outweigh the "savings" on the web.
Mike, I had a situation close to you. I was interested to see what internet pricing, would be on a cleaner... $33.00 above my cost. I was very confused on how Joe Smo pool supply could offer that crazy pricing on the cleaner? So I call the rep for the cleaner, He told me that they can't control their G.P.on their items. But he did go on to say, that there is a "try me" pricing straight from Manufactur. And that I could do it up to 3 times a year.
So Mike, I Made a G.P. $80.00 instead of $33.00. Plus I told the customer that I could calibrate the cleaner to Clean their pool in the best way possible. Happy selling!!
Wyatt Earp
Living Water Pools
OC, CA
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