Pricing by zip code?

Ask replacement window questions & get answers!
Post Reply
Message
Author
Endlessquest
Posts: 13
Joined: Wed Feb 15, 2023 5:58 am

Pricing by zip code?

#1 Post by Endlessquest »

Any truth to pricing by zip code? Will a quote for window XYZ cost more in a community with homes costs averaging 1m Vs homes in a community averaging 300k? I was told this by a friend in the contracting business.

I was given a quote for Okna 600 windows that was about 1/3 to half of orher company's quotes for their Ideal and United windows.

The representative mentioned that his business is located in a location that is considered more lower income (which it is) and his pricing reflects that. He said he's not going to charge more because my home is located in a more upscale neighborhood and he would like to have my business and possable future business and referrals. This Okna dealer also has very good reviews online for their pricing and installation.

User avatar
Windows on Washington
Posts: 5368
Joined: Fri Oct 27, 2006 11:23 am
Location: DC Metropolitan Area-Maryland/Virginia/DC

Re: Pricing by zip code?

#2 Post by Windows on Washington »

If by pricing by zip code you meant that folks in wealthier areas got higher prices vs. their more modest neighbors, not in an ethical sales model and run company. If you meant that certain areas have different costs of doing business...most certainly yes.

Ricknez
Posts: 155
Joined: Fri Sep 13, 2013 9:18 am
Location: southern PA, north east MD

Re: Pricing by zip code?

#3 Post by Ricknez »

Agree with the above response. The cost of doing business can definitely be much higher in certain area’s. It costs much more to run a business in Washington Dc than it does in Little Rock Arkansas.
The Okna 600 is a Much better window than both the ideal and united.

Endlessquest
Posts: 13
Joined: Wed Feb 15, 2023 5:58 am

Re: Pricing by zip code?

#4 Post by Endlessquest »

Thanks...I never heard of Okna windows until I started seeing them reccomended on this site. I called the factory and they referred me to the dealer I'm working with. One concern is that this dealer only offeres the 600 series window and not the 800 series window which is considered Okna's premium vynal window. Should that be a concern? If I'm ordering the windows custom made from Okna, why wouldn't the dealer sell their top tier window?

User avatar
HomeSealed
Posts: 3040
Joined: Mon Feb 15, 2010 3:46 pm
Location: Milwaukee, Madison, SE Wisconsin

Re: Pricing by zip code?

#5 Post by HomeSealed »

Good advice above.

There can certainly be a difference from one market to the next, however as stated, it will be due more to the cost of doing business than anything, with labor cost being the biggest factor. A few years ago a good window installer around here was in the mid to high $20's per hour, now there are guys pushing $40. Some areas see changes faster than others.
Cost of doing business will be a differentiating factor for companies even in the same town, as one with a few dozen employees that have vacation pay, health insurance, a fleet of trucks, and 10 or 20 years of past client installations to service will have a much higher cost of doing business than a smaller guy just starting out... although not for long if the smaller guy wants to stay in business and grow.

Back to your options, great choice with the Okna. The 600 is very close to the 800, almost more of a step sideways than down. Half step maybe. There are various reasons for this, but primarily this is setup for dealers to carry one or two models, and then another dealer in the area may be able to carry another one or two models and not compete directly. If the 600 is the model that your dealer is offering I wouldn't sweat it one bit.

User avatar
toddinmn
Posts: 1084
Joined: Tue Jan 06, 2009 9:02 pm

Re: Pricing by zip code?

#6 Post by toddinmn »

If a business knows window prices are more in a certain area and they charge more is just smart business. Unethical is making false claims. I deal with a ride range of customers and what I charge is my business. If I give a great price to a struggling family and charge another family in 1 millon+ house more Unethical . Not in my book
Regardless the 600 is a great window,

User avatar
Windows on Washington
Posts: 5368
Joined: Fri Oct 27, 2006 11:23 am
Location: DC Metropolitan Area-Maryland/Virginia/DC

Re: Pricing by zip code?

#7 Post by Windows on Washington »

How about if one prospect is a better negotiator than the other?

Like a widow that is doing remodeling things for the first time and doesn't know the first thing about prices? Charge her full boat but charge the guy that's a shrewd negotiator the lesser price to get the work?

I think you are conflating things a bit. If I choose to charge someone more because of my assumption of their wealth, that is at a minimum, a douche move, and bordering on unethical. So what if they live in a million dollar home? You're assigning quite a bit of classism to this logic when you don't know the first thing about that family. That house could be leveraged to the hilt and they could be in more debt and danger of bankruptcy than the smaller home...all for reasons beyond their control.

Now...if you want to discount your price further and thin your margins to help a client out for whatever reason you choose, that is on you and that is a personal choice.

But that is different that charging someone more because they "appear" to be of greater means. Keep in mind, this is also less of an issue when you are talking about a single entity sales organization. I was thinking of the example the OP was referencing more under the conditions of multiple sales people doing multiple presentations per day. In that case, the pricing is SET and is fair across the board.

User avatar
TheWindowNerd
Posts: 2254
Joined: Fri Apr 17, 2009 3:05 pm
Location: SE PA & NJ; DFW/Metroplex

Re: Pricing by zip code?

#8 Post by TheWindowNerd »

Great discussion above.

You will enjoy the 600DX

Post Reply