Are Cabinet Prices Negotiable?
rdw829
12 years ago
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Jumpilotmdm
12 years agoRachiele Custom Sinks
12 years agoRelated Discussions
How Negotiable Are Non-Price Terms in Flooring Contracts?
Comments (10)I never sign contracts that contain the clause "neither party is the drafter," because should you end up in court you lose the protection of differences of interpretation being construed in favor of the non-drafter. And I have never had anyone refuse to strike that clause from their contract. So I would say it's common that people try to put it in. But that doesn't mean you should accept it, unless it truly is a contract whose details were jointly negotiated. And it doesn't matter if 100 people have signed the same contract without making changes (and probably without reading it). That doesn't mean you should or have to do the same. You can ask for changes in a contract in a way that doesn't make the relationship adversarial. If I presented a contract to a customer and they said "There are some terms I'm not comfortable signing," I'd inquire as to their concerns and we'd work out language that addressed their concerns but still gave me protection. That rarely happens, but then my contracts are not written to be one-sided out of the gate. You could take the same approach. So what would I do if it were me? Hmmm, I'd probably sit down with the salesman and say, "Your price and timeline are reasonable, and I'd like to hire you guys, but there are a few things in your contract that cause me concern. As long as the right flooring arrives, it's installed correctly, and there are no problems, it doesn't much matter what the contract says. But I know that sometimes problems happen, and the contract protects both of us by clarifying what we do, who's responsible for what, etc. You've given me verbal reassurances that you're reasonable, but it makes me uncomfortable that you won't document those." Then go through each issue that causes you concern. Talk through verbally what will happen, in detail, say "perfect, that sounds very reasonable," (showing that you're not just trying to cause trouble) then pull out the contract and say, "this contract says something different than what you and I are agreeing is reasonable if we have problem X. Does it make sense to have something different in writing than we actually agree to?" Also, recognize that the salesman might be resistant to changing the contract because the company doesn't have any process to do so, and none of his customers have ever requested it. They probably just have a contract a lawyer wrote up for them way back when, and they don't even understand it. So you're smarter than he is on the contract front, and rather than admit that and say "let me check on that" he's just stonewalling you. If this is the case, you might get further by saying, "hey, you probably don't get many customers asking for changes in contracts, and it's probably a bit much to be asking you to play lawyer. Is there someone back at the office that you could take my proposed changes to, to get approval? You could offer to hand-write and initial the changes for him to take back for review. Can you call the office and appeal to the manager/owner (if a small company)? They're likely a bit more savvy about legal matters. If your attempts to be reasonable, cooperative, and helpful meet with continued resistance, then I'd probably not do business with them. To me, not working to address a potential customer's concerns--especially when they're valid, not just nitpicky--is a red flag about the future working relationship. What's $1500-2000 as a percentage of the whole job? What kind of flooring is this, btw?...See MorePedini cabinet negotiation
Comments (1)Hi Djmax, Try googling the following, definitely lots of input on this forum. site:ths.gardenweb.com cabinet pricing negotiation Another great source on this forum (copy and paste into your browser) site:ths.gardenweb.com cabinet prices daveinorlando Good luck! Oldbat2be,...See MoreNegotiating prices with cabinets
Comments (9)Let me give you an example of specifics and how they are helpfull. Generalizations help no one. Read this and you may see what I mean. My store and another in my town have some of the same products to sell. We both are given MSRP numbers for all the products we sell. I as a newer store starting in a new state am more agressive with my pricing to get established with reputaion and sales to become stable. I lost a sale to the other store last month because the perspective buyer did not want to be the first for me to use some installers I have no previous references for in this area. I sell the product the customer was interested in for a 50% mark up of my cost. The factory charges me .26 of MSRP. If I want to make 50% on the product cost you take .26 x 1.5 =.39 I can say the customer I will charge them 39% of the MSRP or offer a discount of 1 -.39 =.61 or 61% of MSRP. The other dealer in my town selling the same brand name kitchen cabinet states in his advertising that the store is having a 50% off sale. Since the retailer has no stated prices from month to month the sale is not 50% off the normal ticketed price it is 50% off the MSRP. Remember, if I sell it at 39% of MSRP I have a 50% mark up. If the cabines cost $5,000 I charge the customer $7,500. My competition sells the cabinets at 50% msrp. Remember my cost was 26% of MSRP. .26 x 2 = .52 That means my competition is selling the same product for almost 100% markup. When you look at our invoices mine shows a discount of 61% of MSRP while his shows a discount of 50%. The 11% spread numerically nearly doubles the markup. A 13% difference would be double my mark up. This is why companies and retailers use MSRP systems. Advertising happens all the time stating 75% off retail. What really is said is 75% off msrp. As I just showed you a small difference in discount from MSRP makes a huge difference in dealer profit. This is why I state on post after post that the members of Garden web intrested in comparing notes on what things cost need to stick to the specifics of the quotes they are getting and compare the stated discounts or % of MSRP charged to compare if you were given a motivated price. If you were given a line item cost you have to translate it to a cost per foot to average the price out. Cost per foot prices are very relevant when comparing things. You can not assume you got a good price on a Lexus per foot and then compare it to an F150 per foot. You have to stick with like products in a price per foot basis. If you want to compare 2 f150's it works. You should get the idea. All independently owned kitchen and bath stores generally can set the price of their products. I am working with a family I will meet tomorrow where I have proposed a custom made cabinet for a 25% mark up. The customer does not know that is what it is. The sales rep of the cabinet maker today said "you are giving this kitchen away" meaning other dealers in Florida sell the product at higher prices. I wanted the sale at the original time of the quote as an extra sale for the month to give me investment income. They did not purchase at the time. They have come back after doing research for a few months. We will see what happens. None the less I have the right to sell the product at what I chose. Normally I would want a 35% to a 50% mark up. So do not be fooled by a bunch of generalizations. Get specific if you want to compare notes on garden web over price. This does not hurt any one on the buying or selling side. It gives consumers more info of the average discount of MSRP which helps you know if you have found a dealer who is selling for whatever reason on the high side or the low side of the information shared. Dealers like myself if we see what people are comparing it shows us what our competition is doing and we can see what mark up others around the country are using. With a free economy in action everyone still wins!...See MoreNegotiating Granite/Fabrication prices?
Comments (10)It all depends if you live in a competitive market or not and how much work would involved the fabricator. In my case, at a stone yard, I mentioned that the slab I liked was a bit too high. As the stone yard rep heard that I was in a hurry to go to another stone yard to approve on a previously selected slab, he asked to speak with my GC for price negotiation. He matched the price from the other stone yard and got my business. These slabs were similar in color, thickness and availability. Afterwards, I found out that instead of the same quote, my GC was still quoting me higher than the other slab. I felt that the GC was trying to get out from me as much as he could. I gave him my cost limit and he could take it or leave it. He accepted my price. The reason I felt that the negotiated price was reasonable was because I chose for a 3cm (1-1/4") thick granite with a full bullnose. Which meant that the Fab didn't needed to do laminated edging and would not have involved alot of labor. In a matter of fact, my countertop was fabricated and delivered on the 2nd day after the slabs were picked up. Not only that, the Fab didn't needed to remove my old countertop nor had to do the leveling. It was done by my cabinet contractor. You can negotiate the price but be reasonable with it. You don't lose anything by negotiating but you may gain. A GC that wants your business will keep in close communication with you and would be very patience with your decisions. This is the GC that you can negotiate the price with and cares enough to please you. Good luck!...See Moremamadadapaige
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