Marketing Issue [RE-wrenches]

Thu May 15 09:16:25 PDT 2003

HP and its discount advertisers have a market to serve, and to my mind
it is primarily do-it-yourselfers. Trouble is that in this age of Home
Depot and the like everybody thinks they are one, and expects
do-it-yourself pricing even though they are clueless. It's romance vs.
reality. Unfortunately when the reality sets in for a wanna-be DIY the
low-baller they bought from can't help.

Dealer / installers have invested lots of time, energy, and money
becoming educated and perhaps licensed and that should not be discounted
or given away free. It gets very tiresome explaining why my prices are
what they are compared to some garage/basement/warehouse somewhere. 

Prices usually follow experience. The lower the price (be it components
or labor), the less willing or able the seller is to provide competent
service and support. That's how I put it to my customers, some people
get it, some never will. Some people actually do feel better about
paying more, seeing it as a sign of seller competency.

I don't mention HP to my customers, just as I wouldn't mention a
discount internet seller. 

Kirk Herander
Vermont Solar Engineering
POB 697
Burlington, Vt. 05402
ph 802.863.1202 - 800.286.1252
fax 802.863.7908
Xantrex Certified Dealer
NYSERDA-Approved Eligible Installer

-----Original Message-----
From: David Palumbo, Independent Power & Light [mailto:ipl at sover.net] 
Sent: Thursday, May 15, 2003 9:05 AM
To: RE-wrenches at topica.com
Subject: RE: Marketing Issue [RE-wrenches]

Kurt,
I stopped selling HP years ago because of this. I recently had to (it
was
that, or a $10,000 system was going to walk out the door) give a
customer a
$400 discount on an OB FX inverter. I took the time to calmly educate
the
customer, but he still wanted me to nearly match the HP ad price.

I contacted Christopher Freitas at OB and he assures me that they are on
top
of that particular situation and is taking the necessary steps to make
sure
that their products are not treated in this fashion.

Legally there is nothing that we can do about it. HP makes their living
off
of these solar porno ads. They have made their decision based on a lot
of
factors, I know that. I disagree with their conclusions. They do promote
local dealers in their magazines but are hypocrites by allowing these
ads.

I deal with some customers who either know of HP, or even subscribe to
HP,
but it is a very small percentage of my customer base. I view HP as a
hybrid
of a trade magazine for RE dealers / RE enthusiasts magazine. Most of my
customers are not enthusiasts, or hobbyists, they just need good
reliable
off grid systems. If I had to lower my prices even 30% of the time to
keep a
HP reader happy I would no longer be able to stay in business. Therefore
I
do not tell them about HP.

Dave Palumbo

-----Original Message-----
From: sunwise [mailto:sunwise at cheqnet.net]
Sent: Thursday, May 15, 2003 12:55 AM
To: RE-wrenches at topica.com
Subject: Marketing Issue [RE-wrenches]

Greetings all,

We've had this discussion before, but I need to re-visit it or
something.  I also want to mention that

As a solar guy, I highly encourage people to purchase HP Magazine, and
even bought a couple subscriptions for my area libraries (they're half
price for libraries!).  I also used to have a policy of offering a free
one year subscription to anyone who bought a system from me.  I also
sell HP mags retail out of my shop during the summer (retail outlet
closed for winter).

This said, it is difficult for me to have an SP75 hanging on the wall
with a $385 dollar price tag on it, and a stack of HP magazines directly
below with a centerfold ad from Terra Stellar (or some such outfit) with
the same PV listed for little more than my cost.

Do I stop selling HP (please, no), post a list of the ten commandments
(including "if you bought it from them, call them with your
questions/problems), or consider it to be part of the whole solar
process (of going broke?).

I believe we need RE to move into more conventional markets if we expect
it to become more widely accepted, but does this directly translate into
a Walmart and Sam's Club mentality?

I had planned to post this to marketing, but the address is missing from
my newer computer (almost a year old) and apparent no one is using
Marketing any longer.

Kurt Nelson
SOLutions

This issue may be of interest to Wrenchs and MArketeers alike, and as
the

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