Hey everyone, I'm the marketing head at an exterior remodeling company, and I have a question regarding the ROI on windows. We're selling 12 windows at $14,200, but I found that Home Depot's lowest quote for the same number of windows is $12,350 with lower quality. Since I get a 50% discount on our company's prices, I'll be paying $7,000 for the windows that are actually worth $14,000. My question is, when it comes to calculating ROI, should I consider the full $14,000 value or just the $7,000 that I'm spending?
2 Answers
You should base the ROI on the full retail price of $14,000, since that's what the windows are generally worth. Even though you’re paying $7,000, the market should recognize the value of the windows at that higher price.
I’m not entirely sure what your question is, but it’s usually better to go with quality products. Especially if you plan to sell your home, cheaping out on windows might hurt your home's value. In your case, it sounds like you’ll get the ROI based on the $14,000 since you’re installing top-notch windows. But keep in mind how the market perceives the value.