Granite Countertops Marketing Perceived Value Strategy
Granite
Countertops Marketing
Perceived
Value Strategy
Granite Marketing Perceived Value Strategy
In this article we will
talk about creating perceived value and what does that mean to the granite
countertop fabricator. How can we compete in the ever changing and competitive
market place?
I just got off the phone
today with a guy that feels like it’s all over. He just wants to do a good job
and get the $40 dollars a square foot and be done with it. I don’t want to play
games he says. The truth of the matter is that the stone fabrication market is
maturing. That it is becoming important to understand how to market your
products and service and to compete for the available jobs. The economy has put
a strain and has reduced the amount of work available.
This does not mean that its
over –this just means that it is different. We will show you how we help you
create greater perceived value. We work with fabricators all over the country
and this is not our only trick. This is just part of how we can help you get
more than $40/Sf in a 29.99 market.
Perceived value - Definition
A customer's opinion of a product's value to him or her. It
may have little or nothing to do with the product's market price, and depends on the
product's ability to satisfy his or
her needs or requirements.
Each customer will have a
set of values that will fit their needs. If I don’t have a sink in my project a
free sink has no value so there for your offer for a free sink does not
increase your chances of getting my project. I need my tops done before the big
party next week and you offer 3 business day turn around. This just increased
your chances of getting my project. These are examples of perceived value and
how they affect the chances of the consumer contacting you.
Basically the customer is
looking for the greatest perceived value and that’s what is driving this new
economy. With that said we know that in order for the box store to stay in the
countertop business they need to make some kind of profit so we can approach
this a couple ways.
Put out an offer like 29.99
on 3-5 colors (not very popular colors – closeouts etc.)
Lets talk about fee
structure – Gone are the days that the customers are lining up at the door
willing to pay you any price to do the stone work for them. To be competitive
we remove some of the fees from the square foot pricing to ensure that you are
able to market a competitive price and continue to maintain a good margin. You
need to be prepared to do some volume and know what that volume is. The kiss of
death is to start closing deals and not be able to keep up with the work. How
do we get $40+/SF in a $29.99 Market? Look at this fee structure.
Fee structure:
Template fee – This
fee is for the man hours/gas and consumables to template the kitchen – this
will cover your advertiing costs and will not be hard to explain to the
customer. This fee is nonrefundable
(Suggested value $150)
(Suggested value $150)
Sink cut out fee – Not all kitchens require this so we have a separate fee
associated to the sink whole and the faucet wholes
(Suggested value $150)
(Suggested value $150)
Demo and removal fee – The consumer could save a buck or two here
(Suggested value $150)
(Suggested value $150)
Now let’s
look at 2 pricing models and how we create perceived vale
So we have 2 pricing models
I like /SF pricing better but its your call.
Per SF Pricing
|
|||
Potential
SF
|
40
|
40
|
40
|
Price
Per SF
|
29.99
|
39.99
|
49.99
|
Template
|
150
|
150
|
150
|
sink
cut out
|
150
|
150
|
150
|
tear
out removal
|
150
|
150
|
150
|
TOTAL
|
1,650
|
2,050
|
2,450
|
/SF value of sale
|
$41.24
|
$51.24
|
$61.24
|
Package Pricing
|
|||
Up to X
Square Feet
|
40
|
60
|
80
|
Package
Price
|
1,499
|
2,199
|
2,999
|
Template
|
150
|
150
|
150
|
sink
cut out
|
150
|
150
|
150
|
tear
out removal
|
150
|
150
|
150
|
TOTAL
|
1,949
|
2,649
|
3,449
|
/SF value of sale
|
$48.73
|
$44.15
|
$43.11
|
Based on the above price
matrix you can see how we can put you in market at $29.99 and get your $41/SF Now
add to this a 5 day turnaround from template and your perceived value just went
through the roof.
Then it’s up to me to get
that in front of your local customers and see how they bite.
To address the money
concerns...
10 free leads – You sell
one – That’s at least $500 in new profit plus the template fee and that’s $650 reinvest
that into leads - that should generate 20 +/- more leads at 1 in 6 closing
ratio - that’s 3-4 more sales and $2100-2700 more profit
It pays for itself very
quickly.
FireUps® is the
granite and natural stone installer’s source for instant exposure to local and
national markets with strategically Targeted Online Marketing Campaigns and
proven Web exposure. FireUps® provides local online marketing services for the
small to medium sized granite surface installers with a focus on the proven
results that will increase your bottom line. Our teams expertise in direct to
consumer marketing is second to none, and we want to share how we can help
ensure your business is found by the pro-active customer who is searching for
counter tops made from granite, stone, marble or other stone surfaces. Just the
niche product or services you provide!
FireUps® will put
your counter top product, installation service and surface remodeling company
on the virtual map and generate a buzz that you could never have imagined. We
focus on maximizing your return on investment through a clear understanding of
your business objectives and by translating your value proposition to your
customers! If you want to do more granite counter top installations tomorrow, partner
with FireUps® TODAY! 603 617 3877
FireUps® is the granite and natural stone installers source for instant exposure to local and national markets with strategically Targeted Online Marketing Campaigns and proven Web exposure. FireUps provides local online marketing services for the small to medium sized granite surface installers with a focus on the proven results that will increase your bottom line. Our teams expertise in direct to consumer marketing is second to none, and we want to share how we can help ensure your business is found by the pro-active customer who is searching for counter tops made from granite, stone, marble or other stone surfaces. Just the niche product or services you provide!
FireUps® will put your counter top product, installation service and surface remodeling company on the virtual map and generate a buzz that you could never have imagined. We focus on maximizing your return on investment through a clear understanding of your business objectives and by translating your value proposition to your customers! If you want to do more counter top installations tomorrow,
partner with FireUps® TODAY! 603 617 3877