Sighhh,
Just curious to know how many others play the "well I found it for 200.00 less on the web" game.
Seems like more often now than even 3 months ago when I submit a bid the client comes back with "I found it cheaper on the web." Recently, I submitted as estimate and the client asked for me to reduce my prices because he found it cheaper on the web. I made a minor adjustment and resubmitted. After a few days and visits he brings it up agian saying he'll sign off if I'll drop my prices some more. I finally put my foot down and explained that my prices are firm and I hope that my services thus far and in the future are and will be worth the difference. He agreed and all is good.
Just wondering what policies are helping others combat the online shoppers.
I'm aware of the warranty issues concerning unauthorized internet sales. Any other ammo?
Many thanks
CMack

I think you are using the right approach, but selling your service, not necessarily your price.

Keith

Cmac,
Let me play the internet consumer for a minute if you will. I am not a dealer or installer -just a savy consumer and a frequent RemoteCentral visitor. I never pay retail for anything, and I don't use the professional custom shops in my area other than for a friendly look-see.

I do shop the internet for many smart reasons including: no sales tax, and no overhead (ie: brick and morter stores, staff, insurance, trucks, training, payroll taxes, benefits and etc). Believe me....there are some awesome deals out there!

Saying that, I don't think I am the average consumer. I research every purchase and usually end up knowing more than the sales guy at Best Buy or Circuit City (insert favorite store here). However, I don't think I am your customer, nor do I think the guy that plays that game with you is either.

The point here is not to be bluffed. The guys who are playing that game are probably bluffing and/or maybe really need your services, so stick to your guns.
...Just my opinion. -Ken :-)

This message was edited by Ken on 10/10/02 23:16.54.

Ahh, the "old internet bait and switch". Do Not under any circumstances fall for this. Hopefully, you have enough business to eliminate this type of customer. I usually patiently explain that I sell experiences (ie complete tested systems) and not a bunch of black boxes. I had somebody tell me they could get a Sharp Z9000 for 2k less on the internet. I wished him well and moved on. It turns out that the projector came with a Japanese manual which was appropriate since it was meant to receive PAL programming in Japan. The projector was as useless as the manual in the US. Also, no refunds on this particular deal, so I guess this savy customer will have to move to Tokyo or try to resell on the web. I usually quote Forest Gump when confronted with the web... The internet is lak a box of chocolates... etc. You can always sell your consulting services to help a client determine which deals are legit on the web. Just make sure the final bill is more than what they would have paid in the first place. One last thought, the web is for beany babies, not sophisticated electronics.

Hope this helps.

Here's another idea guys. What we do is this, only products that are PROTECTED (read: not for sale on the internet). The lines that are handled in this manner make it easier to do business and the manufacturers are trying to help the little guy. If a customer comes to me and says "I found it on the internet for $XXXXX cheaper, I ask him to show me, if he can then I write down the site and contact the manufacturer. The manufacturer handles the problem for me. However, 9 out of 10 times the customer is trying to play the internet game with me and I catch them in a lie, which of course embarresses them and for some reason makes them feel obligated to buy from me at full retail. This may not work on all products and customers but it definetly helps weed out the ID10T customers.

I think he was just trying to get the best price (Don't think he can be blamed we all want the most for our money). And I think being honest, and direct about it is probably the best bet, like you did.

THON,

I agree with almost everything you said in your post but I have to be honest with regard to your last statement. BS :)

I have weeded out Internet bluffs just by selling the service end & also I will not install gear that was not purchased from my company unless approved. AND then you inform them that there will be an additional install charge for installing it. Just explain, what is the truth in our buisness, even though they bought it from the internet any problems that seem to come up of course are your problem being that you installed it. Typical service charge would be the difference between internet price and your price.
A good example would be Pronto remotes. They are not paying for your programming time or your knowledge of pitfalls when they buy it on the internet.

Unless I have a very good reason, I always respond to "I got a better price from another electrician." with "Okay, I understand. Good luck. If you change your mind, please feel free to call me back." Then, I shake hands and leave. No hard feelings.

Sometimes, I do have the opportunity to explain why what I provide is not the same as the competition. However, like I said, I stick to my price. The value of my expertise and the cost of my time does not depend on the other guys' prices.

Granted, I do not work all day, every day, but I am always happy with the work I'm doing for the money I'm getting. I've found that, once you let the customer have the "upper hand", it's tough to get back in charge.

Yes, I'm working for the customer, but I am my own boss.

Larry
www.fineelectricco.com

We don't give line item prices in our bids. Nor do we itemize our packages. If you (or the customer) wanted a whole house audio system, our bid would read something like this....

(insert our favorite dist. audio system manufacturer here), six zones audio, six sources, installed and programmed, $XXXX.XX, etc...

Gives them nothing to shop against. Then if they go out and get prices, they come back to us and we're the first to be able to break it down and explain it. They never get a chance to shop it up front.

One other thing...

There are NO protected lines....

You can buy EVERYTHING on the internet!

We just installed a RUNCO projector, some H&K Signature, some triad and a pronto, all purchased off E-bay. We even did the pre-wire, but the customer bought gear off E-bay then paid us $150.00/hour to install it.

That rminds me of this same client. The Theater Room was wired by an alarm company with cheap 16/2. Yes this is a dedecated room, no windows, 7.1 and sound proofing. So once again I'm speechless. Anyway I informed the client that the room should be wired with 12/2 based on well alot of things and at the time he agreed. About a week later he decides " I'm going to have to disagree with the rewiring of the Theater Room, I don't think I'll notice 648.00 difference in the sound." (that price did include retro) At that I politely informed him that I withdraw my proposal, and will be happy to design a system that will be appropriate for the wiring. I explained that it would be senseless to purchase a high end amp and speakers, etc. when we won't have the ability to reproduce the sound as intended. Needless to say he called back and decided we would go ahead and include that back in the proposal. Moral of the story is the client was trying to get the upperhand by telling me how the system will be, and by me putting my foot down a gained it back, respectfully and politely. The funny thing is, is that it's always in their best interest. 98% of the time I don't have these issues, just wanted to share the experience.
All good points and will definately influence my next online shopper.
I'm alost looking forward to it.
Many thanks,
CMack

Hey E-Slob,

Didn't mean to get off on a rant. I should say that the internet is like used cars, you can get a great deal, but you better reeaally know your stuff. Have you had some good net experiences? Where do you shop? E-bay? Crestron forum? Here?

Don't you just love people who come in pick your brains and go home and pretend to be "smart".

Hopefully the internet will "drain" their livelyhood too one day and they will then know how it feels!

Think of it on-line dentist with competitive rates!

I think I got a cavity for the cyber-dentist. I've found a ton of deals on the internet, and purchased most of them. I'm not the kind of person who would call a professional in to do a job, then try to tell him how to do it either. And I'd be glad to pay what he wants to do the job to my specifications. And if he doesn't want to do the job to my specs, then I don't want to hire him. I'll find somebody that WILL and pay them whatever they want. Honestly though...try finding an installer to do just a telephone system. Oh...and there's a catch...you ran all the wire yourself. I went through numerous companies, trying to find one that would do it. And then the funny thing...he was glad to sell me the equipment and install it, without having to run any wires, provided I paid him to verify each run, first. So where do people like me fit in?

This is a touvh subject for me. I understand where he comes from because this has happened to us. I understand where you are coming from, but the biggest problem is that an installer doesn't want to take over the responsibility from someone elses work. We installed a phone system for a client (Panasonic KXT624) when someone else prewired, and it was a nightmare. There was noise on some lines, and some just had broken conductors. But the biggest problem of all was that the customer was an ass that refused to pay us until every line was working. We had to run a couple new wires because the ones they replaced were so damaged. And the ass didn't want to pay for the work because he said "The wires were already there!" I personally don't like using wires already there unless the previous work looks meticulous(sp?). I don't mind using coax that was there, but not CAT-5. One last note...We also installed cameras that were pre-wired, and quoted the job at I believe 2 days labor, for 2 guys to install 9 cameras and 6 halogen spot lights 40 feet high on the outside of the same house. We lost out on that part of the bid too, because we couldn't get any of the camera wires to tone out. Finally after a about 7 hours (14 Man hours) the two of us found that all the wires were cut in a small "hidden" closet in the basement that the client failed to tell us about. And, of course he refused to pay for the extra time.