lnstalled sales are more than ama eting gimmick

I NSTALLED sales are ballyhooed I by marketing gurus as the ultimate in niche marketing, but the people who answer the phone in home centers seem to be ignorant of this.

Nine employees answering the telephone at nine different home centers couldn't give the caller a ready answer to the questions "Do you do installed sales?" and "Can your store install a skylight if I buy it there? "

One said, "l dunno." Another answered, "Hold on." "We might," said a third. "Let me transfer you to customer service," replied the fourth. "On what, ma'am?" parried the fifth. "Let me ring that department, they're best qualified to answer you," said the sixth. "Not sure. wait a minute." answered the seventh. "l'll ring the lumber department" was the solution offered by the eighth. "l'll transfer your call to the project center," replied the ninth.

Those answering the transferred calls weren't any better informed. In several cases it required a few minutes on hold before they could come up with a definite answer, information and approximate costs. One person volunteered that there was a wait ofabout a week or l0 days for the service and that the contractor would be licensed, bonded and insured with the store guaranteeing his work. Another explained that a skylight would have to be ordered because they didn't sell many of them.

Fast answers came from the stores without installation but willing to share business cards from contractors who were "good customers" or "reliable installers." However, these people were equally quick to explain that although these were "excellent installers," the store assumed no responsibility or liability for the quality of the work. One explained, "After we sell it, we're out of it." Another launched into a tirade on how difficult it is to please some people and customers who give stores a bad time.

The lesson here is that no store should attempt installed sales without briefing each and every employee, making sure that they have immediate, reliable, positive information about the program. The best installed sales program in the country won't survive if employees are uninformed or negative.

Marketing experts say (and our telephone calls confirmed it) that there is a need for good installed sales programs in many areas. A high percentage of homeowners are uncomfortable doing the standard installations considered easy shots by the pros. Storm doors and windows, hot water heaters, disposals, garage door openers and light fixtures are available at excellent prices in home centers, but many shoppers pay more to specialty shops, plumbing and electrical contractors [or the benefits of installation with less hassle.

Fewer than 200/o of do-it-yourselfers are willing to tackle a major remodeling job. With remodeling/ repair overshadowing new home building at the $100 billion mark, the dealer has an opportunity to diversify. By selling both the materials and labor, he captures the profit for the entire package.

However, there are negatives to providing installation services or contracting remodeling and repair. I'-irst, a dealer may be going head to

Story at a Glane

Possible pitfalls in installed sales programs... variables to corr sider beforc committlng store need for positive, enthusiastic dtitude.

head with some of his best customers. Second, he will be assuming the responsibility of providing skilled, reliable people to do the work. This can involve maintaining a full time staff, hiring part time people or contracting with a professional, not always easy tasks. Finding a person or contractor skilled in doing a variety ofjobs can present problems.

An additional negative is the costs of providing insurance and licensing for an in-house staffor the responsibility of being sure that subcontractors are properly licensed and insured. Putting the store's reputation on the line for the quality of the work and the professionalism of the installers can be a burden.

The increased exposure resulting from installed sales or contracting out the work is a possible negative. While satisfied customers hopefully will recommend the store to others, a dissatisfied customer may be lost forever and tell a dozen others.

Positives include being able to keep labor profits in house. The ability to use a price and savings comparison of 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 customers by employing them part time 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, Dallas, Tx. Cost 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 250lo more than another for the installation of a skylight in a beam ceiling. However, 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 flor 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 niakes 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.