The model home windows program is one of our favorite window sales scams. If you’ve ever seen the movie Tin Men with Danny DeVito and Richard Dryfus you know this one. The fact that this trick is still frequently used has always surprised me. As is the case with all of these window maneuvers they wouldn’t still exist if people didn’t buy them so watch out!
The basics of this maneuver come back to the idea that if a company wants to sell you something at a price above the market price they need a way to entice you to make an irrational decision. The irrational decision in this case is to pay more for something than you need to.
Now remember, paying more than you need to doesn’t refer to a comparison with the absolute cheapest company in town. When you buy a remodeling project you’re buying the quality of the products, the quality of the service the strength of the warranty, etc. All of these things have value and they’re all worth something. When we say these companies are trying to entice you to pay more than you need to we mean after factoring all of these components into it, they’re still charging more than their competitors.
How can I be sure these companies are trying to charge you more than their competitors would?
Because it’s not my first day in this business…and also because they’re lying to you.
Remember we started this post talking about the model home discount. This is when a company offers to sell you their products and services for an incredibly low price so they can use your house as an example of the great work they do. They’re expecting all of your neighbors to see how great your house looks and they’re expecting to sell your neighbors windows too.
This sounds like a real win-win situation. You get great new windows. You know they’re going to do a great job because they want to show off their work at your home. They’re only offering this deal to one house in the neighborhood so you’d better sign up now to take advantage right? NO. This is never a good deal.
In reality they’re telling you this because it’s a good story. They need to get past the universal human tendency to be cautious. You see we evolved over millions of years to be leery of risky situations. This is how we as humans survived all these years. Now they want you to sign a contract and fork over thousands of your hard earned dollars without so much as a google search? Forget about it. You’ll never do it….unless it’s a really fantastic deal.
You see these companies know that another universal human tendency is to LOVE a great deal and to HATE missing a great deal. You love telling your friends about that great shirt you found at TJ Maxx or the steal of a deal you found on the clearance rack, right? How did I know that? Because everyone loves that. It’s human nature. In this case the remodeling company is attempting to use one tendency to overcome the other.
“I wouldn’t fall for that” you’re probably saying. I know, of course you wouldn’t. Nobody in their right mind would over pay for some sales scam. Surprisingly these companies do millions of dollars in business each and every year. People are going for it every day. Nobody every buys something because they think it’s a bad deal. These companies do a great job explaining it and you ‘re left thinking you got the deal of the century. My what a great consumer you are!
Just remember, a model home discount is NEVER a good deal. The price offered today will still be good tomorrow or the next day or the week after that. If you compare your options and decide that you liked that first company then go for it, but don’t let them talk you into signing up on the spot. You should also remember that if they take the deal next week (as I guarantee they will) then they’re telling you that all that talk about model homes was a lie. Do you really want to work with a company that started out by lying to you?
I wouldn’t recommend it.
In extreme cases we’ve even heard these companies telling you to keep the prices secret so your neighbors don’t know what a great deal you got. You know the real reason they want you to keep the price a secret? Because your neighbor got the same price as you or maybe even better.
The big takeaway? As soon as you hear a company tell you that you’re getting a great price because they want to use your home as a model for the neighborhood just picture Danny Vevito and Richard Dryfus in your front yard yelling about putting your home in Better Homes and Gardens as the “before” house. Don’t be that sucker.