Home Depot Threat?

Dave Yates (PAH)

You got that right.

I cruised their water heater aisle on Saturday just to see what's being offered. Whirlpool water heaters with a wide range of pricing - interesting FVIR arrangement. No wonder homeowners go for the additional $201.00 install rate - the FVIR arrangement looks intimidating when viewed at eye level! Small print states the professional installer will quote any additional work - in writing - before starting. Interesting warranty periods, which indicates the HD gurus are paying close attention to what other manufacturers are offering and then adding another year. If there's one thing they do well, it's the marketing of products on display.

Now - you know they're getting a cut off the top of that installation rate. I'd be willing to bet the installer gets about $150.00. For that, he also takes the old one away and, I'm assuming, deals with its disposal. Might as well stay home and write HD a check cause that's a losing proposition - unless, of course, you forego any insurance, income tax or other overhead and don't mind retiring pennyless with a ruined back. But, there will always be more than one fool who thinks he can do it for less and be rolling in it - he just needs to add sh before it to get it right!

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

Geno_15

check this out

this is a letter I found from the North Carolina Board of Examiners to State Rep's and Senators about this, I won't reprint here unless Dan ok's but I think, no I promise you will find it interesting.



http://www.nclicensing.org/FPRetaillegletter.htm

bob d trudeau

home depot

just two guys working for a liviing.now there is a side splitter for you. if you do not like home depot, do not go there.

Conrad

Home Depot & Financing

TLS, your note about the orange balloon and not being able to go against the financing is off a bit. I work for a large P.H.C. wholesaler on the East Coast and we have plans we are able to offer to our conrtractor's through finance companies so they too can offer financing on install's. I suggest you contact your local supply house and see if they can offer you this as well. Sometimes money is an issue but I truly feel if a real proffesional can offer a viable solution most homeowners would prefer the reputable contractor over the big box. As time goes by the horror stories are leeking out and people are getting smarter.......I think

Jack_21

I think he needs heavier gloves.

Can't be too careful in the customers home ya know!!

Rick in Alaska_4

HD financing

If you look, you will notice an asteric next to the financing section. If you read there fine print on there credit card, you will find that the finance charge is only deferred for a year. At the end of the one year period, it is all due. Read the fine print closely!

bob young

2 ' UNION

There is absolutely no such thing as a cast iron union.never was ,never will be. black or galv. maleable steel yes. maybe the clerk could not find it in his book 'cause it wasn't there.

tls_9

Off A bit???

And then you make my point. If HD's credit wasn’t a good marketing plan would Ridgewood be considering it?

The fact is, or at least my opinion, that most water heaters are replaced on an emergency bases. That with the fact that there are many many people out there, in this economy, that simply do not have the cash in the bank to pay for it. The 12 months no payment looks good to them. There are also those that look to offers like that as free money.

I guess my point, in simple terms, is that credit / financing is just another marketing ploy (or tool) and that’s where this industry needs to catch up.

I am not a fan of buying things on credit but it’s what runs the economy right now. I think that it is good that suppliers are considering it. I found no details on your web site. How About providing some?

Is this sponsored by a particular manufacturer or just you guys?

Is this available to any contractor or does he have to sign up, be a member, or something?

Who takes the risk if the end user defaults?

Do you or the bank dictate the price or profit of the contractor?


thank you
tom

Conrad

Home Depot Financing

Tom, the program we offer is through a finance company that you the contractor sign up for. once you are registered with them you receive applications which the homeowner fill's out offering flexible payment plans on borrowing anywhere from $1000-$20,000 at a fixed rate based on thier creit rating of around 9.9% and they can choose a plan that gives them a monthly payment that they are comfortable with (ie:$75.00 mo) and the application is usually approved within 48hours. I know this is not really suited toward the emergency water heater but for larger job's such as the boiler or hvac and other work or home improvement's this works out pretty good. one of the advantages you have as well is the 12 month's no pmts or finance charges is also usually followed up by mega percentage rates once that time is up and that is what they are gambling on which turns the bargain into a financial nightmare because as we all know most people do not make the payoff within the 12 month's.
As far as the responsibilty if the homeowner default's on the loan you are not involved. The finance company accept's that. You (and us) are basicaly the loan brokers.
By signing up with this company you also are on thier referel list if they should get a call directly fro work in your area.