Marble and Granite, Inc. unveils Internet Pricing

February 23, 2012

What a commotion we created last week when we published the retail price of our materials on our website. The trade, such as builders, architects and designers as well as consumers welcomed the change but the loudest complaint came from our customers, the fabricators. Of course, we have changed the way the final price is presented to the customers, although the price itself hasn't changed. Kitchen countertops will continue to cost roughly the same but now the consumer will be more knowledgeable about how their money is spent.
The most common question asked was: "Will you sell direct?". Our answer is: "When it makes sense for the customer". For a homeowner renovating a kitchen or building their new house, it really does not make financial sense. They would be purchasing full slabs and all the waste, taking ownership of the product with all the risk that it entails, and they would not  be prepared to handle or transport the slabs properly and safely. However, for some of the trade- developers, builders and kitchen dealers- it could make sense depending on the business arrangement that they have with their fabricators.

To find out more about the project cost breakdown, you can click here download this document that will explain in detail the cost of a kitchen countertop. 

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Understanding Countertop Fabrication Costs

March 10, 2011
After reading an article about countertop pricing, which begins on p. 74, in the January 2011 issue of Stone World, we want to offer this advice to countertop fabricators:

Taking the time to relay important details to your customer is a key factor in selling your service.  The Home Depots and Lowes of the industry sell their countertops as a SKU, so competing on price is not a competition at all.  Also, break down an ad that lists multiple offers because the listed items are not always relevant (they might already be included in the service and are not really a deal.)

There is a need to determine fixed costs (business costs that do not change) and variable costs (business costs that change with level of production.)  Direct costs such as freight, materials, power, tools, commissions, labor, etc., do not change.  “Indirect costs” are things such as administrative staff, insurance, marketing, and safety programs.

There are various pricing strategies in the market:

  • Square-foot pricing: not very effective when differentiating businesses

  • Good/Better/Best pricing: varied pricing for different market segments (retail, k&b, designer, contractor, etc.

  • Bundle pricing: encourages the use of a product in quantity by offering a discount   for volume, allows for profit maximization

  • De-bundled pricing: encourages customer to upgrade and choose

  • Premium pricing: geared towards unique and high quality, maximizes profit

  • Penetration pricing: for use in new and different markets

Tools such as software, time sheets, and job cost sheets help determine the level of cost in a fabrication business.  Detailed pricing sheets that list cut-outs, edgework, radius corners, bump outs, lamination, seams, etc., are itemized so you are able to break down every detail of the customer's particular job. This is where you can possibly negotiate details with the customer if they do not like the price.

In a competitive market where price is always the first topic of conversation, it is important to outline the details and importance of your service. Check out our post about the factors affecting the price of granite.
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