How Uncle Doug kicks the Home Depot's XXX.

Musings from Uncle Doug

by Jim Peterson, President, ConcreteNetwork.Com

Would?, Could? Home Depot ever provide concrete services or even concrete? Let me share with you my Uncle Doug's experience in the carpet business, where Home Depot supposedly competes.

Uncle Doug runs a small shop in Riverside, CA. He will sometimes have a customer who says, prior to his bidding, "You need to sharpen your pencil, I got a bid from the Home Depot." Doug chuckles. He knows that Home Depot marks up the labor they have to subcontract out by a good margin, and they don't get any better deal from the carpet mill than he does.

The funny thing is- the Home Depot subcontractor will sometimes back off the Home Depot job, even telling the customer, "I have one of my own jobs I have to do first." You see, the subcontractor doesn't care as much about the Home Depot job- it's not his name on the job. And Home Depot will force him to warranty the job for life- yes, for life. 100% lifetime satisfaction is very easy to offer when it is on the other guy's dime, so this arrangement won't last real long. Shortly the Home Depot will need another "hungry man" doing their work.

Doug's family has been in the flooring business for over 60 years- their secret- they simply ask the customer before leaving every job, "Are you happy?." Does the Home Depot subcontractor do that?

So what does Uncle Doug do when the prospect says, "You need to sharpen your pencil, I got a bid from the Home Depot," and Doug knows he will be 10-15% under them? He tells me he gives the customer his normal price, he doesn't raise his price just because he can. But Doug sure has invited me to the the Outback Steakhouse a lot lately- and he salutes the Home Depot we pass on the way.

About "Musings from Uncle Doug"

"Musings from Uncle Doug" will be a monthly feature on The Concrete Network. These articles will be recaps of conversations I have with my uncle Doug on the components of running a successful business. Most of these conversations start around the barbecue, while driving to Del Mar race track, or dining at the spaghetti house with our families. He doesn't intend to spell out good business practices, it just sort of happens. He did not read these business practices in a book or hire a consultant to implement "policies and procedures" in his company, they just came about by being courteous, doing what is right, and listening to people and satisfying their flooring needs.

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