Marketing Issue [RE-wrenches]

Roy Butler, Four Winds RE roy at four-winds-energy.com
Sat May 17 13:47:29 PDT 2003


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OK....my 2 cents worth....

Over the last 7 years I have lost several system sales to the $5 Johnny 
discount RE warehouses. I have frequently described these companies as 
the bane of my existence! But to counter their discount efforts, I've 
decided to let potential customers know of the added value I offer that 
the warehouses can not and will not provide.

I met with one customer on a Sunday afternoon for 4 hours and when the 
subject turned to pricing,  he let me know that he intended to purchase 
the components on the internet and have me install them. I told him that 
it was my policy not to install systems I did not design and sell but, 
in his case, I would cheerfully install for him if he got the owner or 
sales person from the discount retailer to agree to the following:
1- That they come to the customer's home evenings and weekends to 
discuss system design
2- That they remain on call for questions or system glitches 24/7
3- That they would provide continuing on-site system education and 
customer support, preferrably by someone who uses these components in 
their own home (I've been off-grid for 6+ years).
    He pulled out his checkbook and purchased the system with no further 
arguments.

And to make a long story even longer, I recently had a potential 
customer report me to the BBB because he swore that I was ripping him 
off price-wise. He had compared my pricing to the discount houses and 
decided that I was ripping him off. To the BBB's credit, they apologized 
to me for that complaint ever having been sent to me as it was not a 
valid complaint. Here is an excerpt from the letter I wrote to them in 
my defense:

.........the customer let us know he had been comparing our prices with 
internet
discount houses and that he could get his system components for 
significantly
less than we were charging. We informed him that Four Winds could not 
possibly
compete with these prices and he became quite upset. At this point we 
respectfully
informed Mr. ***** that if he could purchase his equipment over the internet
at such a significantly lower cost, that he should do so. We also informed
him of our company policy of not installing equipment we did not sell.
To date, we have worked on Mr. ***** system designs and estimates
for app. 6 hours. This includes several long distance phone calls. This,
together with free system design and tech support are some of the many
value added services we provide our customers. We dealt with Mr. *****
in good faith, providing him with an appropriately designed, code-compliant
system at a reasonable cost. The truth is, we can't offer the customer
a lower price unless we sell to him at our cost.
I want Mr. ***** to realize the huge difference between a pile of
renewable energy components purchased from a discount house and a safe,
reliable, code-compliant, properly sized renewable energy system backed
by customer support from a local dealer. If Mr. ***** does not realize
the value in this, then there is nothing more I can say or do for him.
Mr. ***** has not been over charged or ripped off because no money or
product has been exchanged here. I wish him all the best in finding
the ultimate low cost solar energy system, there is nothing more I can
do for him.
------------------------------
OK.....rant off......it's BEER time!


Roy Butler, Owner
Four Winds Renewable Energy LLC
Arkport, NY

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