Geek Squad Services More Valuable Than Electrical Services?
- Thread starter aline
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mkoloj
Guest
ItsHot said:
I agree the coffe is not great at all, but Starbucks stock seems to be doing alright, I think it has split 5 times since it's IPO i the early 90's.
It is all about marketing to a specific group of people.
They charge 300% of the the going rate of a cup of coffee and make people feel good about paying it.
People feel good about having that $4 cup of coffee just like they will feel better when they can just write a check and have a nice home theater system installed and not have to wrestle with that nest of wires behind it.
cschmid
Senior Member
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- Northern cold country
celtic said:
Bad management does not mean bad company..no profit or low profit margin are a management issue..wait I don't need to give you guys a business speech..Wait it is that time of year HO HO HO MERRY Christmas..
My point to this thread was not to imply the Geek Squad is charging too much for it services but rather electrical contractors are charging too little.
How many electrical contractors out there charge less than $100 for a service call?
There's not a single item listed that's less than the $100 estimate.
I believe electrical services are every bit as valuable if not more valuable than attaching a bracket to a wall and attaching a TV to it. Note: The customer has to supply the bracket the bracket is not included in the price. Yet our prices don't reflect this. There's electrical contractors in my area doing service upgrades for $900.
The most expensive TV you can buy is useless without a receptacle to plug it into.
I often hear people on these forums say you can't charge those prices in my area. The Geek Squad prices seem to be the same regardless of the area. Why is this?
How many electrical contractors out there charge less than $100 for a service call?
There's not a single item listed that's less than the $100 estimate.
I believe electrical services are every bit as valuable if not more valuable than attaching a bracket to a wall and attaching a TV to it. Note: The customer has to supply the bracket the bracket is not included in the price. Yet our prices don't reflect this. There's electrical contractors in my area doing service upgrades for $900.
The most expensive TV you can buy is useless without a receptacle to plug it into.
I often hear people on these forums say you can't charge those prices in my area. The Geek Squad prices seem to be the same regardless of the area. Why is this?
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Free estimates have been around for a long, long time. But what used to be a 5 minute trip accross town is now a 45 minute trip. Maybe it's time to rethink the free estimate thing. Gas is expensive but your time is even more expensive. Is there an electrician in the photo on his way to give a free estimate on a $500 job?
http://www.cbsnews.com/stories/2005/05/09/national/main693952.shtml
http://www.cbsnews.com/stories/2005/05/09/national/main693952.shtml
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Rewire
Senior Member
- Location
- Lake of the Ozarks
I think the problem is not with giving "free" estimates the problem is if all you do is give a "free" estimate. The free estimate gets my foot in the door then it is up to me to "sell' my service. I have to remember that I am also a salesman for my company and selling the service is more than price.When you go buy a car what is the last thing the salesman wants to talk about...price, he wants to "sell" you the car first then when you think you can;t live without it he will talk price unfortunatly as contractors we talk price first before we "sell" the service.
- Location
- Simi Valley, CA
growler said:
Of course I knew it was, my bribes start at $2.5M. If I'm gonna lose my job, I'm gonna make it worth my while.:grin:
The problem with that price is that usually the guys figure out it's just cheaper to do the work right and finish.:roll:
cadpoint
Senior Member
- Location
- Durham, NC
Its a niche market !
Its a niche market !
Cause the Yellow box knows thier expenses. They figured out that the average home owner doesn't care to hang there new toy, and have determined that their bottom line can be helped to supply a service for a great niche market! Maybe their not concerned with a business lose of 2 to 4 employees verses keeping 30-50 persons in a store, besides they get to Geek in the store as well.
Its a great example of a proper service and demand, IE Niche market, note the first example, LOL. The 2nd example is what I'm talking aobut.
http://www.m-w.com/dictionary/niche
Oh and I'm glad I can Humor everyone along... :roll:
Its a niche market !
aline said:
Cause the Yellow box knows thier expenses. They figured out that the average home owner doesn't care to hang there new toy, and have determined that their bottom line can be helped to supply a service for a great niche market! Maybe their not concerned with a business lose of 2 to 4 employees verses keeping 30-50 persons in a store, besides they get to Geek in the store as well.
Its a great example of a proper service and demand, IE Niche market, note the first example, LOL. The 2nd example is what I'm talking aobut.
http://www.m-w.com/dictionary/niche
Oh and I'm glad I can Humor everyone along... :roll:
Riograndeelectric
Senior Member
- Location
- Lakewood Colorado
what about Auto Mechanics. My Ford dealer charges me $85.00 per hour for Auot repairs on my ford van this is down form there Normal price of $100.00 since I am a fleet customer - 2 vehicials and you have to go to them to have the work done.
so what is up with this..
I charge a $25.00 estimate fee that is refundable if I am hired to do the work with in 30 days of estimate.
some Bulk at this while other are ok with the Estimate fee.
this is a good way to weed out the customers only looking for the cheapest price and not looking at Quality work.
so what is up with this..
I charge a $25.00 estimate fee that is refundable if I am hired to do the work with in 30 days of estimate.
some Bulk at this while other are ok with the Estimate fee.
this is a good way to weed out the customers only looking for the cheapest price and not looking at Quality work.
Rewire
Senior Member
- Location
- Lake of the Ozarks
A free estimate is like a free car wash with a tank of gas the idea is to get you to stop at the station.
Rewire said:
bad analogy...i'm putting the price of the carwash into the tank of gas...and you're buying the gas BEFORE I give you the free car wash...
sign my contract and pay me first, and i'll give you a 'free' estimate all day long...
free estimates are losing propositions for 2 groups...the contractors and the paying customers....
the only people who win with 'free' estimates are the people who get 7 quotes on a $400 job to save $15 dollars...
emahler said:that's why I love amex...their miles don't cost me anything
\You just don't see the cost with Amex, they charge a annual fee plus they charge the merchant, who in turn has to build the cost into his price, YOU PAY EITHER WAY!
The big picture is a lot of people will shop for a deal, then throw money away on hidden charges.
satcom said:
ah...i know all that...but I still like it
mostly I like the fact that buy using AMEX, we extend ourselves an extra 30 days of credit to collect A/R's...
but the truth is satcom, you're paying for it anyway...credit cards are so prevelant, that the cost of processing them is automatically added into the price of everything. There rarely is a discount for using cash anymore.
Plus, truth is, the annual fee is well less than the value of the points I get from AMEX...we spend about $500/yr for all the cards...I get back about $50,000 worth of value every year just for using the card. From hotel rooms to plane tickets to anything else in their rewards programs....the annual fee is well worth it for us.
Now, if I was using a MC or Visa, and we didn't pay down the balance every month, and I was paying interest...probably not worth it.
emahler said:ah...i know all that...but I still like it
mostly I like the fact that buy using AMEX, we extend ourselves an extra 30 days of credit to collect A/R's...
but the truth is satcom, you're paying for it anyway...credit cards are so prevelant, that the cost of processing them is automatically added into the price of everything. There rarely is a discount for using cash anymore.
Plus, truth is, the annual fee is well less than the value of the points I get from AMEX...we spend about $500/yr for all the cards...I get back about $50,000 worth of value every year just for using the card. From hotel rooms to plane tickets to anything else in their rewards programs....the annual fee is well worth it for us.
Now, if I was using a MC or Visa, and we didn't pay down the balance every month, and I was paying interest...probably not worth it.
The bottom line is the consumer is paying for any and all perks, no free lunch, we go thru this with our rates, and I think it comes down to what the customer preceives as a deal, and not what a real deal is.
satcom said:
I agree...but there is a difference between getting what you pay for....and paying for nothing...
as I said, we are all paying a few % higher anyway because CC's are so common. I'm deciding to pay $500/yr more for the benefit of receiving $50,000 in value for purchasing things I need to purchase anyway...
I'm not sure you and I are actually disagreeing, I just think that you example is a little misguided...like rewires free gas example....
macmikeman
Senior Member
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- Planet macmikeman
And of course were not forgetting to report those little extra amex perks as income to you know who, RIGHT?:roll:
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