In response to the line item bid. We always give a line item bid. We break down the pre-wire, the trim, and the finish into seperate numbers with everything itemized(estimated budget for cables etc, but part number, description, and dollar on everything else). We have discussed going to just a number, but to be honest, the response to the line item was so much better that there was no way could go to just a number. Cases in point: 1)In our area, there was a lot of turnover for a while a few years back. Companies opening, then going under a year later. Builders and clients lost a lot of money and more importantly, confidence. Our builders VERY carefully review bids now and double check permits, insurance, and licenses. If they don't see where the money is going, then the bid goes in the round file. When we hand a client an itemized bid that is broken down, we have nothing to hide. If someone wants to shop us on a part, then they will. Our pricing structure is and always has been "look at MSRP, then look at the AUTHORIZED internet price(including shipping,warranty,etc).....compare.....then find a happy medium" We have a hard time with some of the prices manufacturers want you to charge for a product. On both ends of the scale. Some products are priced so low and there is so much competition that we have to have low margins. We typically spec in higher-end products that we know work well and we can stand behind. Most of these are not available on-line and there is some price protection. Some products(Samsung DLPs) are priced low on the internet, but the availabilty is low and the shipping makes it worthwhile to buy at MSRP from us. Some MSRP prices are so high and there is so much competition that you can never get MSRP. The Pronto is a great example. The MSRP on the TSU-3000 is $399.99, but you can buy one from the link on this page for $259.95. Should I try to sell it for $399.99 knowing what kind of deals are out there? Or should I sell the remote for say $325.00 then add on 5 hours at $65.00/hour for a basic program? Or should I quote the Pronto at $650.00 programmed? The problem with just giving the $650.00 number is that I haven't attached any value for my time. When I qoute the time it's going to take me to program the remote, then the customer sees where the money is going. My time is just as important as the remote itself. If they want to shop around and try to buy the remote for $259. and then program it themselves, more power to them. It won't be done the same, won't work the same, and after the customer has a few hours into it, I'll get a call to come and program the remote. The difference is that now I can still charge the $65.00/hour that I originally qouted. If I had given the $650 bid, the customer would have undoubtedly thought I was selling them the remote for $399.00 and that the programming was $250.00. Funny how the number work both ways. With the line item bid, there is no confusion. Does this hurt sales? Yes and no. Yes in that if someone thought we were too expensive, they have proof of what we charge for each item and all they have to do is a)discount all the gear, or b)knock of a bunch of "fluff". You know the gadgets and gizmos that make the system work. We know this happens. We gave a small bid to a client who then opened up a competitors bid and said "they aren't using this 'IRKIT', or this 'Cabinet Fabric'and 'Cabinet Labor', or this 'Power Conditioner', why do I need this?" Our answer: smile at the chance to show our expertise then say: "The 'IRKIT' repeats the signals from your remote into the cabinet so you don't have to have the door open to use the system. The 'Cabinet Fabric' and 'Cabinet Labor' are to cover the speaker locations in the cabinet with an acoustically transparent fabric to make sure that sound gets out without any interference from the door. The cabinet maker may do fabric covered doors, but the material is not acoustically transparent and can alter the sound." You get the picture. Every time one of these questions come up, We smile and point out why the part is needed and how we can save them money by removing the item(not discount it) and then why the system won't work the same without that part. the last part is to point out the bottom line on the competitors bid that says "additional parts/materials extra" If you need the part, you need the part better to sell it upfront. When a client sees that we have done a thorough job designing the system and have included all of the parts they need, they can see why our price isn't the same. It seems that most of the shops around here like to throw out bids like raffle tickets "if you put enough out, your gonna get a winner". We prefer to take the time to do it right. Our builders always come to us for this reason. True story: We gave a bid to a client who had gotten a bid from EVERY shop in town, and a few trunk slammers. Our price was the highest. With some bids, we were as much as seven times the price. The difference was our 15 page bid that included everything. The next most detailed was three pages(one was a cover) and it was itemized like an invoice. The beauty was that the lowest bidder had some of the same products we did. On every item they bid on, they were 10-15% higher than we were. They just weren't doing the same job. The client didn't want a "cheap" job, she wanted it done right. We got the job and all is well. When we meet a new client, we make sure they understand who we are and how we work as part of our sales pitch. Too many people don't take the time to sell themselves until it is too late. They don't talk about quality until they are on the defensive. They don't bring up being an authorized dealer until someone else has. Salespeople forget that the company is a product like any other and needs to be sold up front, not later. On another note, we do charge for design time, but not for the bid itself. Our bid adresses design and assigns an hourly dollar amount to it that is added when we do additional design, meet with cabinet makers, supervise framing etc. The initial design hours are on the initial bid and are a seperate line item. Most of the time, the initial design time is only a couple of hours, but at this point the client understands that the intellectual time we spend with them is as important as the time we spend pulling wire(more, if you go by the dollar amount). Further, the subject of additional design time is on the table and the builder, as well as the client know that there will be a charge if the plans/design change.
