Friday, June 28, 2013

But THAT Guy Will Do It For….

After running into some atrocious lighting systems in the past couple of weeks, I felt like I just had to address the whole issue of pricing because I think a lot of people do buy simply on price without comparing “apples to apples” when shopping for an outdoor lighting company.

Why are some systems very cheap while others are very expensive? There are a lot of variables that go into pricing an outdoor lighting system. Most folks only think about fixtures and labor, and don’t begin to think about the big picture and everything else that goes into a system’s price.

Let’s begin with the design. A good design can make a major difference in the impression or atmosphere your lighting system will create. Ask yourself (and your contractor) these questions to determine the potential skill level:

Fountain 1

· Did the person designing the system have any formal training from lighting design experts (which can be costly), or did they take a half day seminar on lighting sales from a supply house for free?

· Do they keep up with current trends and the latest knowledge of lighting technology, or just keep on doing the same old thing?

· Do they attend yearly education classes to learn and hone their craft?

· Do they test several products a year to find out first-hand what effects can be achieved?

All of these help determine pricing. Think about your surgeon – wouldn’t you likely check his/her credentials and education before you invested in his expertise? Would you expect him to keep up with advances in procedures, techniques and technology? Wouldn’t you hope that he participates in some sort of ongoing education to hone his skills? Of course, landscape lighting isn’t brain surgery, but a true professional cares passionately about the quality of his work no matter what where his field of study lies.

Now let’s talk about materials. There are a wide range of lighting products on the market today. Most people are only familiar with the stuff you can find at the local home improvement store. Although this may be convenient for the do-it-yourself guy, these actually represent the bottom of the product quality spectrum. On the opposite end of that scale is what we call the “spec” grade products. Spec grade materials are developed after years of research using the highest quality minds and materials available; which can lead to a price tag of several hundred dollars per fixture. They are designed to perform more precisely and last longer than their cheap counterparts. The middle ground is vast and quite variable. There are hundreds of outdoor lighting manufacturers out there with hundreds of different prices for hundreds of fixtures. Let’s compare this to designer fashions: You have the high-end products created from the designs of artistic minds using expensive, rare and magnificent fabric on one end, created to be durable, well-fitted and flattering. On the other end of the scale you have the “it only costs a dollar” dress. Like fashion, there are a lot of cheap knock-offs - spun brass, lightweight copper and plastic fixtures trying to imitate the quality leaders that are more expensive but made of heavier brass, copper and bronze that also have better warranties. So, the contractor may pay anywhere from $20 per fixture for something from your big box retail home improvement store, to several hundred dollars per fixture for the product that they recommend because it will perform better for a longer period of time in the environment where you live. When you compare pricing, be sure that you know what the quality differences are among the products your contractors are planning to use. What value do you place on performance and longevity?

Additionally, there are necessary installation tools, wire (made of copper), lamps (light bulbs) or light emitting diodes (LEDs), wire connectors, transformers, timers, batteries for the timers, automation equipment, screws and more little things that are necessary to a quality installation. Just like the fixture differences, there are huge price and quality differences in the other materials used in putting an outdoor lighting system together. The products used make a big difference in pricing.

And of course someone will be spending time to install the well-designed system. Can they communicate well with the client? Do they look presentable and behave professionally while in your neighborhood and on your property? Do they know every aspect of what they are doing and can they answer your questions? Are they certified by a nationally recognized association for their profession? Maybe they normally just dig holes for plants and installing lighting is a sideline; or maybe they are handyman types with no actual lighting experience at all. Do these installers have benefits with their company, or do they make minimum wage with nothing extra? Do they participate in ongoing technical training just like the designer? A quality workforce is not cheap - and this, too, must be considered when setting up pricing for your lighting system.

What about insurance? Does the contractor have liability insurance? How much insurance? If your home is worth $3,000,000.00, does the contractor have enough insurance to cover it if something went terribly wrong? Are all or any of their vehicles covered? In Texas, workers compensation insurance is not required by law but maybe your state does require it. Do you realize how costly insurance is?

Does the lighting company work out of their home, or do they have some other location where they run their business, keep their inventory and park their vehicles? What kind of expenses does that location cost with its utilities, insurance, rent/mortgage, and maintenance? The cost of other overhead could also include health insurance, cell phone services, costs of electronics, fuel, vehicle maintenance, advertising, and other things specific to that operation.

Finally – and very importantly - there is the service after the sale/installation. Will you hire the lighting company that doesn’t return after dark to make sure all the lighting is adjusted properly to the right look? What sort of warranty of service can you expect from your contractor after the installation? If they promised you service, can you count on them to provide service when you need it? The differences in product warranties and services can be as vast and varied as the many product choices. While some companies may offer 6 months of service after the sale, others may cover the system from bumper to bumper (so to speak) for three years. It’s probably safe to say that the company that shows up for three years just to clean the fixtures for optimal lighting (at no extra charge) probably costs a little more than the company that won’t even stick around until it gets dark. How much value is there in doing business with a company of integrity?

So a lighting system is far more than a list of materials and a few hours labor. It’s good to research and shop. But be sure to compare components equally. Apples to apples – not dog food to prime rib! It has been my experience that we usually get what we pay for, and it’s important to know what that is before you write the check. The educated buyer will get the right value for their money.

“The bitterness of poor quality remains long after low pricing is forgotten!”
~ Leon M. Cautillo

“Quality improvement is the primary source of cost reduction. Poor quality has a huge, documentable cost.”
~Tom Peters

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