Commercial

Big Drop? Old-School

Using steep discounts to win contracts has lost credibility with customers who turn to the Internet for information about the price and value of products and services.

11 MIN READ

Of course, many home improvement companies continue to use steep discounts as a purchase incentive. But they now run the risk of tarnishing their reputations or, worse yet, not being taken seriously. “The only way people can give big drops is when they’re giving customers a lower-grade product,” asserts Camille Saleh, corporate sales manager for Cincinnati–based Champion Window. “It’s a major turn-off,” Casey says, about following competitors who are using deep discounts into the home.

Some contend that the Internet hasn’t necessarily made prospects smarter, just more susceptible to whatever they’ve read. And what they’ve read may not be accurate and is sometimes posted maliciously. As a result, salespeople find themselves spending more time countering homeowner perceptions about product quality or their company’s reputation. “Consumers can rate you even if they don’t do business with you,” observes Bill Stevens, vice president of sales for Unique Home Solutions, in Indianapolis, referring specifically to popular online site Angie’s List. “So if someone doesn’t like our prices, they can give Unique an ‘F.’ That’s crazy.”

JAUNDICED EYE There are and always will be that 10% or 15% of customers, Casey estimates, who select a contractor based on price. But prospects using the Internet to research their home improvement purchase are at least as much interested in quality and service. And those Internet researchers, say contractors, are the prospects most likely to view Big Drop pitch finales with a jaundiced eye. “Those old-school tactics just don’t work anymore,” Levine says. “As a consumer, if someone comes to my house and gives me a price of $10,000, and then says it’s $5,000 if I sign today, I think it’s B.S.”

Such attitudes are spreading, but they’re also demographic and regional. Kuplicki notes that there are “many levels of computer awareness.” Ferguson, of K-Designers, points out that customers in markets such as Seattle, Los Angeles, San Francisco, and Denver “are younger and more tech savvy.” But while older customers or those who live in rural areas may not be as adept at Internet research, many are just as demanding for other reasons. “As people get older, they start to realize that home ownership has a lot of inherent costs, which aren’t as clear to new owners,” Ferguson says. “They take a longer view [about home improvement] because they don’t want to be replacing windows again in five years.”

A PRE-QUALIFIER One thing that all contractors interviewed for this article agree on is that salespeople must be much better prepared. Questions “hit the table faster because of the Internet,” Levine says. “We get a lot of ‘I read this, I read that.’” When a window’s energy efficiency is at issue, for example, the six salespeople who work for Legacy Remodeling’s Swing Line window and siding division back up product claims with information from the National Fenestration Ratings Council.

In the Internet age, the trick to winning customer confidence, or even attention, is to deliver more than what Internet-informed customers might already know. Jeffrey Fick, vice president of Fick Bros. Roofing Co., in Baltimore, says that more of his customers than ever are using the Internet, including Fick Bros.’ own Web site, as a pre-qualifier before scheduling an appointment.

But once his salespeople get into a customer’s home, Fick says his company has an advantage because “we primarily install slate roofing, and customers are still pretty unfamiliar with that product.” That opens the door for the salesperson to educate the homeowner and gain trust. Ladley-Love of RBA Colorado notes that though most prospects have heard of Andersen Windows, “they don’t know Renewal, so we still have a chance to educate them about us.” Unique Home Solutions plays up the brand exclusivity of the Soft-Lite Windows and Crane siding it installs; while Penguin Windows, in Mukilteo, Wash., emphasizes that it’s the only company in its market offering krypton-insulated triple-pane windows. Like Home Town Restyling, Penguin Windows salespeople also never fail to mention that the company’s AAMA-certified installers are employees, not subcontractors, says director of operations Vaughn McCourt.

Penguin Windows invests heavily in advertising to generate the 110 to 150 appointments per day it needs. With that much brand exposure, McCourt says, his company has to be a “good citizen.” Mistakes and misunderstandings would make it an easy target — via Internet lists, chat rooms, and bulletin boards — for irate homeowners and competitors.

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