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Selling windows – with or without software
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PUT BLUNTLY , A SALESPERSON needs just one thing when sitting down with a potential client : confidence . Confidence in the product , and confidence in the pricing structure in use . An effective , well thought-out and easy to understand pricing system makes life easier for the salesperson , and engenders trust and confidence in the consumer . So why do so many retail companies operate from a pricelist ‘ borrowed ’ years ago from a competitor or former employer ?
Printed pricelists are still in use in a surprising number of retail companies , large and small . These pricelists tend to have several different , and conflicting requirements . The owner / sales-director wants to know what the profit margin is , but this requires a level of complexity and maintenance difficult to justify , and which may work against the other main requirement – that the pricelist is easy to use . Over the years window companies have come up with varied solutions .
Windowlink is often called in to set up pricing and presentation software , and we have come across all shapes and sizes of pricelist , from single-page much-simplified efforts , to large and bulging lever-arch files . Some are based on a ‘ cost plus ’ basis and , at some point in their history , have probably given an idea of profitability to the management team . Many more are ‘ guesstimates ’, cobbled together as a few pages , or a single matrix uplifted for coloured foils , varied materials and glazing . The best to be said is that it is easy to use , and the company seems to be doing okay .
What could possibly go wrong ? The obvious answer : a lot . Paper pricelists are open to interpretation : it is possible for three salespeople to price a job from the same pricelist and to calculate three very different ‘ correct ’ prices . They are inaccurate and have no relationship with actual costs and overheads of a business .
The good news is that pricing and presentation software like Windowlink ’ s can cope with any method our customers care to throw at it . Systems can mirror software used by suppliers , ensuring that each frame-cost is correct . Prices can then be marked-up , or could be a reproduction of the manual pricelist previously used . What is important is that cost can now be checked against selling prices before the invoices come in . Alternatively , the pricing could be based on any hybrid method used by the installer .
‘ It gives confidence to the salesperson and client and has been proven to increase sales .’
So , what is the best type of pricelist ? From a software point of view , the ‘ right ’ method is to take the cost of frames and glass , add fitting costs and an element of overhead recovery , then to add the margin required . However , your target market will influence where you position your price . If you present yourself as a top-end , ‘ Grand Designs ’ kind of company you will present yourself as best in sector , and you may be able to set your price-point independently of competition . If your target is in the middle or lower part of the market you may need another strategy .
Common pricelist models tend to be either market or competitor-led . You can base your pricing on what you estimate the market will stand , or you can attempt to match your competitors ’ price . Neither can be claimed to be accurate ; neither will tell you your profit margin . An advantage though is that they can be quicker ( and cheaper ) to build , and can be modified by simply changing the discount structure .
Many fabricators and trade suppliers now offer versions of their manufacturing software to give accurate costings . This can be helpful , but is of little use to a sales-person on an evening call who needs to give at least a ball-park figure on the night . These programs are focussed on one element of a wider product range , but are of more use to the supplier than the installer , removing the need to provide quotations on demand , and allowing the installer to order directly through the software .
Presentation , visualisation and pricing software such as Windowlink ’ s can be set up to reflect an entire product range , costed accurately and regardless of supplier , from PVCu , aluminium , and timber windows through to high-end bi-folding and composite doors . Set up properly , a software system can act as brochure , pricelist and sales training manual – if it is in the program it can be sold ; if not , not . It gives confidence to the salesperson and client and has been proven to increase sales .
14 » JAN 2018 » CLEARVIEW-UK . COM