Panel price increases and existing quotes.

[saint]

Hi
We have had the go ahead for a 10kWp system in the last week and although we haven't received a deposit yet we are confident it will go head in the next few weeks. The client has paid direct for a commercial EPC so is showing commitment. The panels have gone up by £18 x 40 = £720 since quoting in mid Jan. Our contract states quote is valid for 30 days but we i have never had to bring this up with a client before. Obviously we want to do the job and there will be one possibly two more installs off the back of this so we don't want to rock the boat. But like everyone we are working on tight margins are £720 is a big hit.

I would be interested in anyone else experience with dealing with this and how it went. Did you increase your price or swallow the cost?

 

[stevie gill]

We too have had an issue like this recently.

We've found being open and honest with the customer is always the best way. Tell them the your costs have increased and see what they say. You can always offer an alternative panel that fits your original budget (assuming you've not gone with a budget panel already!)?

Our client was happy with a different panel after he sore that the system performance was only going to be a few kWh less.

 

[FB.]

Show them a chart of the British Pound:
$XBP - SharpCharts Workbench - StockCharts.com

:49:

 

[FB.]

-
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Just noticed a headline article on the FT tonight:

"Spectre of stagflation haunts UK"
The prospect of stagflation has returned to the UK as investors bet on a sharp jump in inflation to its highest level in almost five years......fears that the UK could be simultaneously hit by stagnant growth and high inflation, as experienced in the 1970s.....

Spectre of stagflation haunts UK - FT.com

Many reasons suggested for the drop in the Pound, ranging from poor economic data...........the lack of concern about above-target inflation by the Bank of England............Quantitative Easing.......the new Bank Governor (Mark Carney) abandoning inflation targets entirely and simply flooding the system with as much Quantitative Easing (British Pounds) as is required to kickstart the UK.

It's a potentially explosive mix, but with the FT now noticing it (the FT are often late to notice things), there's a good chance that the current bout of weakness in the Pound may soon pause - but who knows where things will end up, other than it looks like over--indebted governments are stuck in a no-win situation.

In any case, if inflation really takes off, it is highly likely that the cost of buying life's essentials (food, fuel etc) will see the worst of it.

So perhaps there will be a new wave of people wanting solar, in order to:
1. Protect from soaring energy costs.
2. Earn a return on their money before inflation reduces their Pounds-in-the-bank to the buying power of mere pennies.


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[dansk]

offer to go 50/50 shows willing on both parts.

 

[saint]

Changed the panels for a comparable at roughly the same price we quoted. Client gets 5W extra per panel. Everyone happy.
Cheers

 

[SRE]

Well done - any problems with supply or was it relatively easy to find the panels at that price?

 

[methley]

If a company gives me a quote valid for 30 days then I expect them to honour it. What's the point of stating this in the contract if you do not intend to stick by it? if it had gone in the opposite direction, i.e. your costs had gone down, would you have passed this on to the customer?

 

[saint]

If they sign the contract and pay the deposit within 30 days then we would honour the price. If they don't then we wont take a hit of £700 plus just because they say verbally they want to go ahead. How do you run your business ??

 

[saint]

Well done - any problems with supply or was it relatively easy to find the panels at that price?

Not easy as these are all black but we managed it. We and the customer feel its a fair outcome.

 

[Ian-LS]

If a company gives me a quote valid for 30 days then I expect them to honour it. What's the point of stating this in the contract if you do not intend to stick by it? if it had gone in the opposite direction, i.e. your costs had gone down, would you have passed this on to the customer?

If the quote was sent in mid Jan as this was with a clear 'quote valid for 30 days' and the customer comes back after 6 weeks saying they want to go ahead then its reasonable if the costs of equipment going up then the costs of the quote will increase. If the contract was signed within 30 days of the quote you'd have a point but it wasn't

 

[SRE]

If a company gives me a quote valid for 30 days then I expect them to honour it. What's the point of stating this in the contract if you do not intend to stick by it? if it had gone in the opposite direction, i.e. your costs had gone down, would you have passed this on to the customer?

Every customer who agreed a contract with me last year was refunded when panels reduced in price before I bought them. Can't speak for anyone else but I'm a bit offended at the sweeping statement Why would you bother installing if you can't make any money - might as well join the millions on the dole.

 

[Ian-LS]

We generally would do the same if the equipment costs had come down. We tend to try and keep the same margin on each job though we do sometimes get priced down in order to secure the contract.

 

[stevie gill]

If a company gives me a quote valid for 30 days then I expect them to honour it. What's the point of stating this in the contract if you do not intend to stick by it? if it had gone in the opposite direction, i.e. your costs had gone down, would you have passed this on to the customer?

Nobody knows what the availability of panels will be tomorrow, let alone after 30 days. We, like every other reputable installer will do their upmost to honour our quote but if the panels aren't available, what are you supposed to do?? Buy a couple of containers full and just hope you get the work?? We'd be around for about a week if this was the case!!
Our contract states that in the event that the specified equipment isn't available we will offer an equivalent product. If the customer isn't happy, they can walk away having spent nothing!
Your comments are neither accurate or helpful in times like these when the solar PV market us on its arse!

That is all.