Story at a Glance

Possible pitfalls in installed sales programs. variables to consider before committing store need for positive, enthusiastic attitude.

head with some ol' his best customcrs. Sccond, he will bc assunring thc responsibility ol' providing skilled. reliablc pcople to tlo thc work. This can involvc maintaining a lull time stall', hiring part time pcople or contracting with a prol'cssional, not always casy lasks. lrinding a pcrson or contractor skilled in doing a varicty ofjobs can prescnt problems.

An adclitional ncgative is the costs ol' providing insurance and liccnsing lirr an in-housc stafior thc rcsponsibility ol'being surc that subcontractors are properly licensed and insurcd. Putting the store's reputation on lhc linc lbr the quality of'thc work and thc professionalism <ll' the installcrs can bc a burdcn.

Thc incrcased cxposure resulting lionr installed salcs or contracling out thc work is a possible negative. W'hile satislled customers hopefully will rcconrmend the store to othcrs, a dissatisflcd customer may be lost lorcvcr and tcll a dozen others.

l)ositivcs include being able to keep labor profits in house. The ability to use a price and savings conrparison ol' d-i-y and installed sales in your advertising and marketing can also be an advantage. Another plus is the possibility of providing work for some of your contractor customcrs by employing thcm part timc or contracting work to them.

Pricing can be a puzzle, but there are several ways to approach this, according to Wally Lynch, P.A.l.D. Associates, I)allas, Tx. (lost plus, a contract with standard add on or labor and material plus are all workable pricing possibilities. Offering a guarantee of satisfaction and warranties can enable a store to charge more. For example, one of the stores contacted by phone charged 250ft more than another lor the installation of a skylight in a beam ceiling. llowever, they guaranteed the work and made it clear that the contractor was licensed, bonded and insured. The other dealer emphasized that he had no responsibility for the work or the contractor.

Controlling labor as well as the market can be an advantage for a retailer. With installed sales. he not only makes a profit, but becomes a destination store for his customers with the benefits of repeat customers and impulse sales. The first step, though, is selling his employees on the idea.