Marketing Issue [RE-wrenches]

[Daryl DeJoy]

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         I'm going to agree with Bob-O on this one. And Matt, although what 
you're saying is partially true, I think cutting our profit margin by 50% 
is pretty substantial. As a guy who only installs solar electric systems 
for a living, that is a BIG cut in my standard of living (not that it's 
very high, anyway...).
         I find our installation profits to be about 1/3 the total net 
profit. Although I think in principle most wrenches agree with the general 
tone of this string, only support by the manu's, distributors (who must 
stop selling to  the general public ) and time will make this type of 
selling PV equipment obsolete.
         There will always be some small do-it-yourselfer market. 
Eventually, insurance companies will start denying Homeowners Insurance to 
all RE homes except for  those professionally installed. This is starting 
to happen in Maine already. People don't generally buy a furnace or hot 
water heater off the internet and then have someone install it. Why should 
PV be any different?
Daryl
Penobscot Solar Design



At 09:48 PM 5/17/03 -0700, you wrote:
>Jeez-0, Bob-0, profits in the hundreds for a decent sized system? Thousands
>for the components? I suppose that depends on what kind of system it is
>you're talking about. In our ground mount systems, the installation profits
>often equal or exceed the materials profit. I assume you must be using
>pre-packaged
>systems applied to a "standard" comp shingle roof to have such a dismal
>installation margin.
>
>With profits on equipment ranging from 20 to 33% on a 2500 Watt system and
>an installation cost of around $10. per Watt, things seem to be pretty even
>to me.
>
>Matt T
>----- Original Message -----
>From: "Bob-O Schultze, Electron Connection" <econnect at snowcrest.net>
>To: <RE-wrenches at topica.com>
>Sent: Saturday, May 17, 2003 7:39 PM
>Subject: Re: Marketing Issue [RE-wrenches]
>
>
> > Joel,
> > That is absolute nonsense two ways.
> > 1) In a fairly priced, decent sized system, the profit on the
> > components is measured in thousands whereas the profit on labor is
> > measured in hundreds.
> > 2) Once a Wrench touches a system, it's his/her responsibility-for a
> > hell of a long time if not forever. It's probable that there will be
> > service calls sooner or later. A fair profit on the parts upfront
> > will cover a service call or two without having to argue with the
> > client over whether or not it was your fault that the part failed.
> > You may know, but he/she doesn't and they have nothing to lose by
> > arguing the point. And we all know how most manus compensate Wrenches
> > for dealing with component failure..... Go to Helen Waite.
> > Been awhile since you've done much field work, hasn't it?
> > Cheers, Bob-O
> >
> > >  Installers make more money
> > >selling their skilled labor. If the customer buys the wrong part, that's
> > >their problem. If the customer installs the system wrong, that's an
> > >opportunity for you to sell your skilled labor if you so choose.
> > >
> > >Best regards,
> > >Joel Davidson
> >
> >
> > --
> > "One of the common denominators I have found is that expectations
> > rise above that which is expected."
> > George "Dubya" Bush
> >
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>To send a message: RE-wrenches at topica.com
>
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