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| What the big Double Glazing Companies don't want you to know | ||||||||||||||
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Examines some of the practices and strategies used by the large Direct Sell double glazing companies.
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So what don't they want me to know?
Well one of the first things they don't want you to know is how easy it is to replace the vast majority of windows found in homes to-day, I'm not talking about old box sash type windows here, but normal everyday casement windows as found in most properties built since the 1930's To put it simply, all you have to do is cut out the old frame, screw in the new one and seal it up. There is more to it than that of course but you get my drift.
So why do people get suckered into paying huge sums of money to have seven or eight windows and a couple of doors replaced, sometimes paying six or seven grand and even more, for a job that could be done for less than £2000. Well most of them fall foul to the babblings of a slick salesperson.
Are all Windows the same?
These salespeople will tell you all sorts of well rehearsed reasons why there window is superior to anyone else's, they will show you the fancy locking mechanism and how it will prevent burglars from breaking into your property, they will explain about the effects of Double Glazed units and how you will save a fortune on your heating costs, the list goes on and on. Don't get me wrong, these locks are very very good and the Double Glazed units will show a marked increase in your comfort level particularly if you have been living with single glazed windows, but the fact of the matter is the windows are pretty much the same no matter where you buy them from. We all use the same type of hardware, possibly bought from the same supplier where the super salesman's company buy there's from. The vast majority of manufacturers use Pilkington "K" glass for their Double Glazed units and whichever profile you are offered, it will undoubtedly have the same features and they all perform very much the same.
These days there is little difference between one PVCu window and the next, certainly the layman would not be able to differentiate one from another.
Beware the Higher Purchase!
If your only alternative is to borrow money from the Double Glazing Company's finance supplier you will almost certainly be paying a very high price for the goods but also a very high price for the money borrowed. Some Company's only make profit because they sell on finance and rely on the commission or "kickback" as it's called. The rates can be quite high, particularly if they have sold you the Payment Protection insurance.
If you must borrow money to do the job, borrow it off your Granny or any family member. You could even pay for it on your Credit Card and pay it off as fast as you can, if you time it right, you can get almost two months free credit. You don't have to do all the house in one go, if you can't afford it, do what you can afford and do it in stages. It will cost you a lot less in the end.
So why do they charge so much?
Because the majority of that money goes into sales and marketing. How much do you think the salesperson gets for his efforts? between 10% and 15% is the norm so, for a £5000 order say, he would get between £500 and £750. Not bad for a couple of hours work, how long would it take you to earn that much? No wonder they sometimes stay till gone midnight!
Now that sort of earning potential may surprise you but it doesn't stop there. In the larger Company's there will be a Sales Manager and possibly a Regional Manager and they get what's called an overider which is a payment usually about 2.5% on all the sales that their salespeople make so there's another £125 you just got hammered for.
You may think that's enough dead money spent but there's more! These salespeople need sales leads and they cost money too, plenty of it. The Marketing Budget for some Companies can be as much as 25% of their revenue. Telesales canvassers, door canvassers, in store canvassers etc., all work on a similar basis to the salesperson, usually they get a small basic plus a bonus or commission for every qualified lead they produce, they also work under a canvass manager who also gets an overider. No wonder we get mithered to death every time we pick up the phone or go into our local Shopping Centre. So next time you are approached by someone "just doing a survey" no matter what the product is, think about what you will be paying for if you get sucked in and finally buy something from that Company. If you've ever bought something in this way and paid more than you should have, the term often used is "you've had your hat nailed on" which means you've been taken for a gullible punter and trussed up like a Turkey.
Then there is advertising. Pick up your local rag, either the paid ones or the free ones and I guarantee there will be at least half a dozen Company's offering you half price, free fitting, 60% off sale, buy one get one free (also known as BOGOF) whatever they are offering, you can be sure they don't give anything for free. Yes they can say free fitting or whatever there promotion is but anyone can do that if the price of the window is 2 or 3 times what it should be. The cost of advertising is extremely high but these Company's don't mind paying a high price for the leads that advertising generates because they are considered to be very strong leads. If the customer has contacted the Company they must be keen and these are the leads the salespeople love to be given as opposed to canvassed leads. The free newspapers exist by virtue of their advertising revenue, it's a vicious circle.
Anything else I am paying over the odd's for? Yes a couple of things. The larger Company will also employ surveyors, service engineers, Contracts Managers and fitting teams. To be perfectly honest, they couldn't run their Company's without them, but do you really want to be paying for all this? Of course there are people who just want to get there windows, doors, conservatory etc., installed by a Company that's set up to do it without the customer having to worry about a thing. Well sometimes it works out like that but we've all read stories or seen reports on T.V. of customers paying "through the nose" to have their windows fitted and what a saga that turned out to be. I'm not knocking these Company's, most of them will do an excellent job but at a price. Everything is relevant. Showrooms are another expense to the Company that will inevitably be passed on to the customer. Whatever type of property they operate out of it will be costly and together with rates and service charges etc., it can add a big chunk of money onto the cost of what they sell. How do I avoid these high prices? In the words of the small animal on T.V. seemple! read.... How to Do it Yourself and save a fortune
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Copyright EASIFIT WINDOW WAREHOUSE LTD
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