Marketing Issue [RE-wrenches]

[Joel Davidson]

Dear Bob-o,

Relative nonsense maybe, but not absolute. I think the difference is urban
labor dollars vs. rural or even very remote labor dollars. Boondock
contractors often have to compete with self-reliant locals and a low
cash-flow local economy. I can relate. For 10 years I lived in the 2nd
poorest county in the 2nd poorest state. In Arkansas, people still say,
"Thank god for Mississippi."

I still do field work, but don't have the time to travel off-grid. Lately,
I've been working on concurrent 45, 60, 100 and 100 kW commercial PV systems
in LADWP territory.

Contractors do not have to assume responsibility for pre-existing conditions.
When you rent a car, you sign a legal document agreeing to the condition of
the car. Likewise, you can inspect a job site, list the deficiencies and
require the owner to acknowledge in writing pre-existing conditions. Then you
can charge to correct the deficiencies.

Callbacks due to faulty equipment have plagued the PV industry since its
inception, but I think we are starting to see a new breed of BOS engineers
and managers.

Regarding prices and profit, here's a story I was told several years ago: A
barber was complaining to his accountant, who was also a customer, neighbor
and friend, that he had to lower prices to compete with the Super Cuts
barbershop that just opened up in his neighborhood. His friend said, "Don't
lower your prices. Raise them." The barber said, "That's absolute nonsense.
I'm already losing business to Super Cheaps." His friend said, "Right now you
give 30 haircut for $10 each and make 30% gross margin. If you lower your
price to $8, you have to cut 90 heads to make the same dollar amount of
profit." The barber replied, "I can't do that. I'm already working 12 hours a
day." Then the accountant explained, "If you raise your price to $12, you
only have to cut 18 heads to make the same dollar amount of profit." His
friend went on to say, "Let's face it. You are going to lose some customers
to Super Cuts anyway. Instead of complaining about cheap barbershops and
cheap customers and the world becoming one giant MacWalmart, raise your
prices and and emphasize your years of experience, your skills and your
quality. You'll attract upscale clientele, make more money, get bigger tips
and have more time to spend with your family and friends."

Best regards,
Joel Davidson
`


"Bob-O Schultze, Electron Connection" wrote:

> 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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