Conservatory prices - why sell cheap?
I found a great conservatory video on YouTube today. I’ll let you watch it first, before I explain why I was disappointed at the end:
The video is clearly a TV ad, and with Charlie Dimmock presenting, it is well produced and most definitely suggests quality. The shots of the conservatory, with an Ultraframe roof, electric roof vents, electric roof blinds, Ultraselect etc give the viewer the impression that Easy Fit Conservatories (formally Tailormade) of Walsall, Leamington Spa and Solihull are a good quality conservatory installation company.
So, why spoil it by suggesting to the viewer that they can buy such a conservatory for £4,999???
To be honest, the usual price of £6,000 is way off the mark. Let me break down how much that conservatory aught to retail for:
Conservatory baseworks (based on 4.5 x 4m which is about the size of the one on the ad) should cost the company about £2,500 (minimum), assuming proper foundations are fitted and good builders used.
The conservatory framework will cost around £1500 to manufacture, bearing in mind there is a complex Sunburst frame which needs sending to a specialist arch company.
Then you’ve got about £400 for the glass for the frames, and sunburst.
The roof would cost in the region of £900, including rainwater goods, Ultraselect, electric roof vents and the gable eavesbeam system to the front.
The conservatory shown has a glass roof which I would estimate would cost the company approximately £700-£800.
Plastering - £250
Electrics - £400
Tiled floor - £500
Bits and bobs - £200 (skirting boards, window sills, lead flashing, silicone sealants etc)
Fitters wages - £600
Commission to salesman - £500
Add it all up and I get the cost of the conservatory to Easy Fit at around £8500. Now, the company also needs to make a profit on the installation, so lets assume they make £2000 (which to be fair is a low margin).
Then, don’t forget the taxman needs his bit. £10,500 + Vat = £12337.50 inc.vat.
This price excludes cost of planning permission and building regulations, which I would guess this one requires as only the front is glazed. This price also excludes the conservatory blinds, furniture and the cost of decorating.
Let’s face it - its not a £5000 conservatory - its a £15,000 conservatory.
Now, I’m not singling out just Easy Fit here. I’m sure Easy Fit are probably a good installer.
The problem is our industry seeks to con the general public into showing interest in ridiculously low prices, and then leave it for under pressure sales people to go in and price build.
“Sorry, Mr & Mrs Bloggs, the conservatory on the advert only includes for a 3×3 Edwardian conservatory, and doesn’t include fitting or any extras.”
The fact is that the average conservatory price is around £10,000 to £12,000 and if you want something a bit more special (like the one on the video) then they cost a bit more.
Why, can’t we compete on quality, service and innovation, and not price.
If not, we’ll continue to mislead the public, and drive down our margins further!
3 responses so far ↓
1 Graeme Bailey // Jan 10, 2008 at 11:19 am
Hi,
A good rounded article on costings and one that few companies seem to want to follow.
An article by Jim Rawson in one of the industry magazines a couple of months ago highlighted similar concerns and rightly so.
The industry has become obsessed with price as opposed to quality of product and service and seems quite happy selling at prices that are the same as 5 years ago or longer, why ?
Teach your company to sell its products better and stand up for better margin. This is going to be a tough year as the industry matures further and companies following a line on quality and service will be under immense pressure from other companies just looking to take orders to survive.
Profile, software, hardware and machinery suppliers are all expected to develop new products and continually invest in R & D yet when we do the manufacturers just swallow it up and give it away at the same prices or less, why ?
Graeme Bailey
(Director, Business Micros)
2 Renegade Conservatory Guy // Jan 12, 2008 at 8:16 pm
Hi Graeme
Thank you for your input.
I entirely agree. Far too many installers and fabricators are cutting prices needlessly at the moment, and driving down margins. They’re doing this due to depressed demand in the market.
It’s little surprise that the industry is in turmoil. I’ve just got back from Cycle India, and I find that a number of major players have gone bust:
Planet - gone bust for the second time! Notorious for selling conservatories cheaply.
Budget and Pennine Windows from the North East. Both major players, who probably brought each other down.
Bowater Zenith and Staybright - to be taken over by Brian Kennedy.
Everwhite Plastics - a casualty in the roofline sector.
I’ve also heard that another major Synseal fabricator has gone bust.
Who’s next??!!
3 Paul // Apr 15, 2008 at 9:53 am
You will find Easy Fit are trading from Taylor Made Windows & Conservatories building. Taylor Made shut down 3 years ago and Easy Fit appeared even though they say they are not the same company. It has all the same staff and the old owner is still around even though he has not put his name to the business. They don’t guarantee their work you have to pay the builder and the fitters separately so when you phone up the tell you to phone the builders or fitters. This is what you get when you buy cheep. There is a lot of info on them on the net.
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