Wednesday, September 5, 2007

How Much Does A $200 Window Really Cost?

The average person driving down the street seeing sign after sign littering the telephone poles promoting $200 windows could only conclude that a new window cost $200. After seeing several signs of different colors and with different phone numbers, all new windows must cost $200. Let’s explore what a $200 window really cost.

A $200 window is a base model that is used to attract price shoppers in order to get a salesperson in their home. Generally the salesperson is honest enough to inform you that the window is a piece of garbage and that a good window will cost at least $400+. Let’s assume that the sales person is not honest. When you add on Argon gas and a single layer of Low E to meet the energy codes the price jumps to a little over $300. When the sales person finds that your install is not a “basic install” your price will generally jump another $50-$75 which brings your total to a little under $400. So now we can conclude that a $200 window cost a little under $400.

At this point my article should end, I answered the question correct? Well not really, cheap windows are just cheap windows and are made by companies that make cheap windows. Cheap “vinyl” windows are made of vinyl that is mixed with used plastic. These windows will always began to fade and discolor, the surface begins to chalk like cheap plastic lawn chairs and the material falls apart. The glass is generally a single strength glass which cracks very easily letting cold air in and creating a hazard. The frames are never sturdy and they will sag due to the weight of the glass this prevents the frames from contacting the weather stripping properly. The life span of a cheap window is around 3-5 years before they fail. But wait, the sales guy said that they have a lifetime warranty. A warranty is only as good as the company that stands behind the warranty. There are over 600 names brands of windows in the US today, how many can you name? Companies make a ton of money making cheap products and changing their names every few years in order to avoid warranty issues. Look for a replacement window company that has been in business for a while.

In case you have not put the pieces together yet, a $200 window is actually a $400 window and it will fail in a few years. Once you replace the $400 windows you are at $800 per window. The question now is how long do you want your windows to last before you need to replace them again? Hopefully you will only want to replace them once in your lifetime. So, how about asking the “$200 window company’ for some really good windows? Let’s take a look at the integrity of a company that sells crappy products. Their marketing is illegal in most areas, they litter telephone poles, place flyers under your windshield and call your home even if you are on the do not call list. They offer prices that are low in order to pull a “bait and switch” once they get in your home. They generally have not been in business in one area long enough to answer any warranty complaints. Is this the type of company that you want to buy your product from?

You might need to reread this again to understand how a $200 window turned into an $800 window, it’s hard to stomach! If you are going to spend $800 on a window, please only spend it once in your life!

Sunday, August 12, 2007

Home Improvement Pricing Games



In an effort to attract new customers, home improvement contractors like to run ads with big “discounts”. We have all seen the 25%-50% off ads in our newspapers and in our mail. When the sales person comes to our house there is another 10% off sale if we act today. Some even call their boss to get a few more 10% off discounts. If we add up all the discounts the products must be free!

Heavy discount marketing requires greed on the part of the consumer in order to work. If a consumer wants to pay a fair price for a fair product or service this tactic will not work. Who in their right mind actually believes that someone is offering them vinyl replacement windows or siding for 50% off? If any company discounted their service 50% they would go out of business in a few weeks. Who would want to buy from a company that is going out of business? If the company was going out of business, would they sell more products for a loss to go out of business even quicker?

I think we can agree that the 50% discount is really fishy, let’s see how it works. Let’s say they want to sell their service for $900 a unit. In order to run a 50% off sale their “regular price” needs to be $1800 per unit. If they want to offer a few 10% off deals while they are selling their product in the customer’s home their “regular price” needs to be real high.

Let us use a regular price number of $2500 for a replacement window. They can run an ad for 50% this month only, they don’t want you to wait until next month. Their asking price is now $1250 for each window, when they you this price you will reply that it is to high. Now comes the first “price drop”, a 10 % savings if you act now. Your new price is $1125 for each window. If you balk at this price generally you will get another 10% if you let them place a job sign in front of your home for a few months. You new super low price is around $1000. If you balk at this price thy will call their boss to offer you an even lower price if you agree to sign the deal today, let’s say another 10% off. So far the price went from $2500 all the way down to $900.

It seems like there is no end to the price drops. Some companies will call back a week or two after the appointment to offer a few more price drops. Most consumers hate this tactic because they are afraid to buy before the lowest price. Imagine buying 20 windows for $1250 each ($25,000) and finding out that your neighbor bought the same windows for $800 each ($16,000)? You just overpaid $9000 , would you be angry?

In an effort to combat this time of pricing tactic I promote a “regular everyday price” and 10% off when needed to drive sales. No fabricated sales, no inflated prices, no price drop until they buy tactics, just an honest price for a good product. This type of sales policy does not leave any room for the salespeople to overcharge some people while discounting other people. Hopefully all the consumers who are tired of the pricing games will demand this pricing method from their home improvement contractors. Let’s keep the used car buying experience on the car lots and not in our homes.

Saturday, July 21, 2007

THE BEST REPLACEMENT WINDOWS, HOW DO YOU RATE THEM?


I have been answering the same question over and over again on Home Improvement web-sites, which window is the best. Most window buyers have no idea how to rate a window company.


Rating windows is not as easy as saying one is better than the other one. Consider these things when rating windows:
Looks- which window looks the best to you the owner. Does the window look good viewed from both the inside and the outside?
Function- does the window meet your needs? Do you want the sashes to tilt in for easy cleaning?
Options- does the window company offer the options that you need? How about colors, windows are now sold in several different color both on the inside and the outside. Window screen are now available with several different options.
Maintenance- do you want a window that is easy to clean and does not require any painting or staining?
Warranty- how long is the warranty that they offer? Will the company be around to honor the warranty? Does the warranty cover labor? Is the warranty pro-rated? Do you have to buy replacement parts at an inflated price?
NFRC ratings- Do you care about how good the glass is? Do you understand the benefits of triple pane glass? Do you know the differences between the different spacers? Do you know about Argon gas or Kyrpton Gas?
Customer service- will the company handle your window issues in a timely manner. If one of your sashes (glass) breaks how long will it take to get you a new one.
You should check the BBB reports, and several of the other on-line complaint databases to get a feel for what people are saying about a company.


Please post your questions and I will try to assist you with your home improvement needs.