[RE-wrenches] Combating requests for itemized PV pricing

[Parrish, Peter]

This is all great stuff, and I would like to add one more "bon mot".

When I get into a situation where I am asked to break down my costs, or work with a DIY client where they will purchase the hardware and have me install the equipment...I gently steer the conversation to issues of quality of design, quality equipment, customer satisfaction and warranties. I walk them through the "what if" when an inverter fails that they purchased; and other scenarios. 

If we get to the point where price continues to be the sole focus, I drop my voice a few half-tones, look them in the eye (if I can) and slowly say, "If price is your only concern, I suggest you work with another company." This usually results in a spasm of indignation, "How dare you tell me I shouldn't try get the lowest possible price!"

I usually say something to the effect that they have every right to pursue the lowest price, but that approach isn't a good fit for our company.

I have never been able to turn one of these customers around so I think that the best approach is to terminate discussion politely and ASAP.

- Peter Parrish

California Solar Engineering




From: re-wrenches-bounces at lists.re-wrenches.org [re-wrenches-bounces at lists.re-wrenches.org] on behalf of toddcory at finestplanet.com [toddcory at finestplanet.com]

Sent: Saturday, August 18, 2012 11:25 AM

To: RE-wrenches

Subject: Re: [RE-wrenches] Combating requests for itemized PV pricing






jason and others - i also get these folks, but my reputation is stellar and i am (thankfully) in such high demand that i can still turn down work, which allows me to keep my bull-shit-detector fully
 activated and be very selective with who i will work for.
 
that being said... we have a diy company here (wholesale solar) in mount shasta. i get calls from people who bought materials from them, wanting me to install someone else's design and materials. i
 am VERY clear with folks i do not touch materials i do not sell or install designs i do not do... and the reason, which is because of quality and warranty issues.
 
for example, a couple of jobs ago i ended up with a defective out-of-the-box fm80. part of what paid for me to troubleshoot, contact outback and replace it (twice) was my profit margin (although if necessary, i will lose money
 on a job to make it right for the customer). i mention things like this to the customer and usually the light goes on as they 'get' the value of my design and free troubleshooting /service/ training for a year (and often longer) after the system has been installed.
 
i absolutely refuse to do jobs for people wanting "solar on their house" without any consideration of wasteful behavior or the need for efficiency upgrades first. ethically, i have a hard time with these kinds of jobs... and now
 that the prostitution of the solar industry is nearly 100% complete, i let the "new expert$$$" have those customers.

 
yes, i make less income putting in smaller systems for conscious people, but i feel good about the work i do, sleep well at night... and i believe i have far fewer hassles since i let the problem customers
 (whose only consideration is the bottom line cost) go elsewhere.
 
my .02
 
todd
 
 
 
 
 
 
On Saturday, August 18, 2012 9:18am, "Jason Szumlanski" <jason at fafcosolar.com> said:





We are getting more and more people calling that want to provide their own equipment and have us install it. It's frustrating, because usually they are looking at prices for materials that either I would not consider selling, or would not meet the mounting
 requirements of the Florida Building Code. Of course, they do not understand and consider all of the other costs.
In addition, lots of people are looking for a breakdown of prices (down to the line item - nuts and bolts). I generally refuse to provide it because it inevitably leads to the response "I can get that module/inverter online cheaper." The "I need to make
 money" response leads to "yeah, but you must be getting better prices than I see online" argument. And so on, and so on... I'm sure you've heard it...
I've resorted recently to just providing a percentage breakdown, stating that the price is roughly 25% each:


PV Modules Inverters and Electrical Mounting System Design/Engineering, Permitting, Labor, Overhead, and Profit 
Any other tips out there to answer the request for line item details?


Jason Szumlanski
Fafco Solar







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