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 itÔÇÖs all over. He just wants to do a good job and get the $40 dollars a square foot and be done with it. I donÔÇÖt 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 ÔÇôthis 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 donÔÇÖt 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 thatÔÇÖs 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 ÔÇô closeouts etc.)
Lets talk about fee structure ÔÇô 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 ÔÇô This fee is for the man hours/gas and consumables to template the kitchen ÔÇô 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 ÔÇô 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 ÔÇô The consumer could save a buck or two here
(Suggested value $150)
(Suggested value $150)
Now letÔÇÖs 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 itÔÇÖs 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 ÔÇô You sell one ÔÇô ThatÔÇÖs at least $500 in new profit plus the template fee and thatÔÇÖs $650 reinvest that into leads - that should generate 20 +/- more leads at 1 in 6 closing ratio - thatÔÇÖs 3-4 more sales and $2100-2700 more profit
It pays for itself very quickly.
FireUps┬« is the granite and natural stone installerÔÇÖs 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
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