Just thought I’d throw in my 2 cents here about the Home Depot, etc. “big box home improvement stores” discussion on here.
This frustration over these type of businesses has been going on for years, as long as I have been plumbing, and I’ve been in it for over 25 years. Back in the 80’s I remember the grousing about the same stuff that is going on now. Then a group of plumbers and a wholesaler wanted to get the attorney general here in MN to look into a big box store on water heater installs that were ridiculously cheap. There was some talk that their installers were not licensed plumbers, etc. I don’t remember exactly what became of it, but I don’t think much happened. I think the investigation showed that they were licensed, just that they were working super cheap, or that the big box store with their deep pockets were making up the difference between what the installer wanted verses what they were charging the customer.
Back when I was in business in the 90’s I did some referral installs for a home improvement store here in MN called Budget Power. (They are no longer in business.) I’m sure you know the program, a customer walks into a store and buys something, say a toilet, and if they want Budget Power will refer an installer if the customer desires. They had a price list of what they charged customer for that install. They would charge the customer for the toilet & the install and then call an installer like myself to put it in. They told me this is what we will pay to do it, and I could take it or leave it. They had pricing like that ‘to stay competitive‘, as they put it. Most of the time it was a lot less than I would have charged to do the job, but on the other hand it was an easy way to get work. Most of the time I reluctantly took the job, it was better than no work at all in a slow week.
I’ve recently talked to guys that I know that do installs for Home Depot and others, plumbers and other trades, who say that some of those stores are running specials where the company basically eats the difference between what the installer wants to do the job verses what they charge the customer. They don’t do this for everything, but certain things for a period of time, trying to build up business and move product.
This seems to be common amongst not only the big box stores, but a lot of bigger plumbing shops, as well. Here in MN there is a Benjamin Franklin Plumbing franchise that has been offering cheap pricing specials, no doubt trying to build up business. These shops aren’t exactly fly by nights and hiring unlicensed hacks either. There was a recent article in the newspaper here about them doing well and making money with their business plan. Just makes me wonder how is a small shop like the one I work for supposed to compete with this kind of stuff going on.
With the economy the way it is now a lot of people have been ‘doing it themselves’ a lot more, myself included. I’m not exactly getting big paychecks with the little hours I have been getting lately. Which brings up the other side of the issue.
I’m on both sides of the fence here when it comes to these stores. I can definitely agree with the points brought up here. But I’m also a customer of these big box stores, and a DIYer when it comes to my own stuff. I have finished my own basement, painted my own house, added outlets and lights in my garage, added a deck on my house, just to name a few things. With my limited budget, even when I had my own business, it just wasn’t going to happen if I didn’t do it myself. And I know that there are those of you on here that DIY too. You guys can’t tell me that you have never done anything for yourself in your own house, painted a room, fixed some woodwork, put a new door knob on etc, etc, etc….Those of you know who you are…Complain about people going to Menards, Home Depot and Lowes buying plumbing stuff then yourself go buy something from there and do it yourself. It is this kind of hypocrisy that turns me off about these discussions. If you can say that you are pure and never do anything yourself, hire it all out, them maybe I would lend some credence to the argument. The only people I know that can afford to hire it all out are rich shop owners and other rich guys that make a lot more money than your average plumber.
Well, I tell you what, I’m not going to live in a cracker box so I can pay someone to do what I can do better myself.
And how far do you want to go with this, how many of you work on your own trucks, change your own oil, mow your own grass, do your own laundry, get a haircut at home from your wife or whatever….just think of all the professionals like mechanics, lawn care companies, dry cleaners/laundry services, barbers that are making less money because you are doing it yourself.
My point is these stores and what they are doing aren’t going away anytime soon. Putting big box stores out of business isn’t going to solve the problem. I agree that they shouldn’t have unlicensed people doing work, and that should be stopped. I agree that they seem to have an unfair advantage because of their size and deep pockets. However, they have a right to be in business just as much as we do. John Menard became a multi billionaire with his Menards business and when you are talking that kind of money they are not going to disappear. Well more than half of all home type business is done through the big box stores.
A few years ago I took a Delta faucet factory tour in Indianapolis, IN. At the end of the tour we had a question and answer session with the Delta executives, including John Whitehead, the president. I asked him about their business with these big stores. He said that they sell the exact same faucets, models, part numbers, etc. to them as our wholesalers. He said we are talking about millions of dollars when it comes to dealing with the big boxes, they are not going to turn that down. Maybe something should be said to these manufactures about selling to big boxes.
For those of you worried about them cornering the market and putting us all out of business, well I would say that if that was going to happen it would have a long time ago. This type of thing has been going on with these stores for years, with Budget Power starting in the late 40’s or 50’s, and I think even before that with Lampert’s for 100 years or more and family owned hardware stores .
So what should be done? I have discovered that there are basically 3 types of customers, the ones that no matter what will always do it themselves, the ones that always pay someone to do it, and the ones that are sitting on the fence whether to do it themselves or to hire it out, depending on the price, if they have the time or money, etc. The last 2 is what we need to concentrate on. We have to do like I have heard others say in these forums, improve our appearance, our knowledge and expertise, and be fair with pricing, create a good positive image with the public, instead of a bunch of whiners and complainers. I have found the biggest complainers are lazy and don’t want to compete, want things to be handed to them, want the competition put out of business so they don’t have to do anything.
I have found the public images of plumbers and other professionals hasn’t exactly been in our favor lately, either. I have seen in the media lately lots of stories of customers complaining about us trying to screw them, the local evening news reports of ‘shady contractors’… Dealing with customers calling to our shop, ‘us guys and our high prices…’ I’ve heard plenty of stories of complaints to attorney generals of overcharging by plumbing shops, heard talk of inspectors who need to ‘keep us in line’ from screwing people…
Then I see talk here of groups getting together to stop big box stores from holding plumbing classes and making laws against people installing plumbing in their own homes. It is this kind of organizing and collusion ‘to keep prices high’ is what I’ve seen people talking about and is not good for our image.
Okay, maybe more than 2 cents here…TheCaptain