Many companies may say they’re an authentic cost-plus insulation program, but what does that actually mean? If the general public is not achieving true savings, then it’s just another gimmick or phrase. So, let’s start with a basic definition of an authentic cost-plus insulation program:
- It has taken time to calculate the actual cost of its insulation and related services ( freight, overhead, etc.), and then
- Then has established a predetermined markup or profit on top of that cost.
Price = Cost + Profit
A preferable cost-plus insulation program offers two or more profit options for the public. A company typically clearly lists the features and benefits of each option, along with the corresponding prices. The wholesale price of the insulation is quoted upfront, or the public can calculate their own price online. Then they select the option that best serves their interest. Here is an example of two authentic cost-plus insulation options:
Option 1: (With a related profit/fee cost revealed)
• Get Standard Delivery: 11–21 days from the time of completed payment.
• Protective Insulation Facing Option: WMP-VR-R (Plus)
• Facing Dimensions: Widths 4’, 5’, 6’; Lengths 25′, 30’, 50’, or 100’
• Facing Color Options: White facings w/ 2”–3” tabs.
• Company Support: Email support, Monday–Friday
Option 2: (With a related profit/fee cost revealed)
• Expedited Delivery: 3–10 business days from the time of completed payment
• Protective Insulation Facing Options: WMP-VR-R (Plus), WMP-10, WMP-30, WMP-50
• Facing Dimensions: Widths 4’, 5’, 6’; Lengths 16’–100’
• Facing Color Options: Black & White facings
• Company Support: Toll-free phone support, 7 days a week
• Individual shipping distance review (25% of customers receive additional savings).
• Access to 24 pickup locations (save on shipping cost)
• Low complexity custom quotes.
• A representative reviews the order and consults before submitting the order.
As you can see, this cost-plus approach is clearer than the traditional retail approach used by commission-based salespeople, who disclose as little as possible and aim to maximize profits. More metal building insulation buyers are looking for sources that provide all pertinent information upfront in writing, rather than having it conveyed by sales, including the real cost and any additional charges. The public is better educated, and the bait-and-switch tactics that were so prevalent in prior years are increasingly being exposed.
What to look for in an authentic cost-plus insulation program
1. An authentic cost-plus insulation program reveals verifiable Cost
- It displays actual wholesale invoices or prices that reflect definitive market savings
- The freight costs are revealed, or the request is given up request
- There are no “mystery” prices.
- As a rule of thumb, if the base cost is not justified, it’s not an authentic cost-plus program.
2. Transparent Markups
The profit revealed should be:
- A fixed percentage or flat fee
- Always revealed upfront. Never after the fact.
- The price is consistent for everyone. No favoritism.
Never buy from a firm that indicates the price may change after an agreement has been met.”
3. Never Accept Hidden Cost
You should look out for:
- Administration fees
- Penalties charges
- Basic processing fees that should be included
- Increased or inflated freight charges
If it is a viable cost-plus program, the only additional cost is the profit (markup)
4. Authentic Cost-Plus Insulation Program: Empower the Buyer with Control & Choice
Strong cost-plus programs allow buyers to:
- Review the real cost before adding profits.
- Allow the customer time to select the profit/markup option that suits them
- Then the program recommends the custom, compare this price to market quotes
5. The Low Cost-Plus Insulation Program Should Be Consistent
Replicable companies sustain their selling approach. If there are changes, they are subtle.
- Those purchasing again shouldn’t be surprised by large profit increases on their future orders.
- Shipping scheduling should maintain relatively the same (unless there are justifiable reasons)
- A customer should not be uncharged indiscriminately if they need to adjust their order.
The public wants consistency. It is a rarity in the current market climate.
6. Seller Authenticity and Accountability
If you locate an authentic cost-plus insulation program, then you will notice:
- They never attempt to oversell or pressure you into buying
- Eagerly accepts competitor quotes
If the seller seems aggressive, defensive, or rude, that’s a red flag
Conclusion
An authentic cost-plus insulation program can be trusted. They are transparent and eager to prove their value. You should notice a stark difference between the low-cost-plus insulation program and a corporate retail operation. Before you buy steel building insulation, please do your homework and find a good cost-plus insulation program.
