Let the Buyer Beware: 3 Tips for Evaluating Custom Closet “Deals”
How do you evaluate pricing in today’s world of deep discounts? It seems like the days of a company putting a fair markup on a product and selling it at that price are long gone. Everybody is looking for that “Deal”.
How do you know if you are truly getting the best price? In the home organization business, when no two designs are the same, how do you evaluate the “Deal”? Can a company truly offer 40% off plus free installation? Most large companies struggle to make an 8% net profit margin. The “evil” drug companies are lambasted for making 12-15%. Some large software companies can make as much as 20%. If very few companies have a net profit greater than 20%, how are so many offering discounts of up to 40% and staying in business? The quick answer is that they cannot offer these deep discounts without grossly inflating their markups.
It’s a matter of simple math. I can sell my product for $100 every day or I can sell the same product for $167 and offer a 40% off discount. Which is the better deal? The answer is it doesn’t matter; the customer is spending $100 either way.
When buying a custom product, you should be wary of discounts over 20%. This is especially true if you see the large discount offered in every ad, because it’s probably too good to be true. The best way to evaluate the price for a custom closet is really based on the design.
Here are 3 tips to help you evaluate your custom closet “deal”:
1. Make sure that you are comparing apples to apples. Count the number of shelves, the number of drawers and accessories. Are the drawers using ¾ extension or full extension drawer slides? Check out the color and material finish. All these things can contribute a difference in price.
2. Does the design work for you? Did the designer address all of your needs and concerns? Did they do the design in front of you with your input? Were you able to see a 3D rendering of the design?
3. If price is an issue, ask the designer if there is a less expensive color or style or maybe eliminate some accessories. Don’t sacrifice design or quality to save a few dollars.
The lowest price does not insure the best design. At the end of the day, you need a closet that works for you in terms of storage space, function, style and budget.
When it comes to closet design, we offer many options. To see what would work best for your home, request a complimentary in-home closet design estimate.
{{cta(‘de241f07-c37a-42c1-9757-f7c98c53333b’,’justifycenter’)}}