Same here. The money is in installing, maintaining and servicing these units, not in the sales. At least not in this area anyways. I couldnt care less where the unit comes from, whether they buy it from me or a retailer. As a matter fact, Gods honest truth, when they buy from a retailer it saves me a lot of back breaking labor dinking around unloading at my shop, getting it to the site, and then placing it. When they buy from a retailer, that is the customers problem.
As far as the comment that home depot has generac all sewn up. Thats Simply not true. Generac has a deal worked with home depot, lowes, menards, and many, many other retailers to put their product in front of millions of people.
How generac works as far as sales goes is pretty basic. 4 tiers of pricing based on previous years sales. Direct, select, elite, premier. Lowest level to highest level. I have all the pricing for all the levels. Its really not that big of a difference between direct and premier.mnow when you are selling a couple hundred units a year, yes, a few hundred dollars less is a huge amount over the year.
Now, home depot gets premier level pricing, because it goes across all stores. They can sell to any customer at premier level pricing. Now if the customer wants an install with it, then the lead gets passed on to a generac sales and install company. That company can make the sale (at home depots price) and then charge for install. Home depot gets 15% of the entire contract price.
So, to break this down simply, we can compete with home depot on sales and basically match their price because they mark theirs up more than us. But on sales and install together, the installer needs to add in that 15% and thats where we can easily compete and beat.