Steel Building Tips

Many steel building salesmen will try to get your signature on a contract quickly. They will make up any reason why you need to sign and fax it back to them right away. They’ll fax the front of the contract to you, get your signature on it, and never give you a chance to read the back. Trust me, you want to read the back of these contracts. This is where the company outlines how much money you are charged if you cancel your order, all sales are final no matter what lie you were fed, you are on your own once delivery is made, etc. Do not sign any contract without reading the fine print on the back of the contract.

When buying a steel building you will get some salesmen that are extremely pushy. This is especially true when doing business over the phone. It’s a numbers game to them – the more calls they make, the more chances they have of getting someone to buy. They will push and push. As long as you can stand your ground, you will be okay. A pushy salesman reminds me of a used car dealer trying to get rid of a lemon by saying whatever it takes to get the car off of his lot.

This type of salesman does not listen to you when you talk because he is thinking of how he can push you to buy what he has to offer not what you need. You want a salesman that helps you make an informed decision. He should ask you questions about how you will use your building, what accessories you will need, etc. This is called consultative selling because the salesman “consults” with you and discusses your needs before he tries to sell you a building. Otherwise, how would he know what you need in a building?

You get what you pay for. If it sounds too good to be true, it probably is. I don’t mean to sound cliché, but these statements are good sound advice to follow while building shopping.

While on the topic of shopping for the “cheapest” building, it is important to mention to compare apples to apples. For example, do not think that the price of a 40×60 I-beam building and the price of a 40×60 Quonset building should be the same. Even if the price is in the same ballpark, your overall total cost will differ. A Quonset building may be cheaper than an I-beam building for storage of equipment. However, if you need to insulate a Quonset building, it is nearly impossible to do so because of the rounded style. In this case, you may be better off with an I-beam building at a higher cost that can be easily insulated saving you time and money in the long run.

Remember -  Calculate your total cost. You’re metal building price and your total cost will differ greatly depending on your needs.  I realize you need a starting point when shopping for a metal building. The three things you should compare when shopping for building price alone are: building type (Quonset or I-Beam), size, and sales price. The price and size can be found in a magazine ad or on a company website. You may have to clarify what type of steel building it is if they don’t show pictures in the ad. Starting with these three criteria will get you going in the right direction.

Don’t tell salesmen how much their competition is quoting you on a steel building. Why? You may miss out on a really good deal. If you tell them the price on their competitor’s quotes, then they will come in slightly lower just to make the sale. Meanwhile, you may not be comparing apples to apples, since they may use cheaper products in their quote. Tell the sales people exactly what you are pricing out using brand names, gauge of steel, etc. Then ask them to give you their price. This is the only way you can get a fair deal. Once you have all the quotes from different companies on the exact same order, then you can choose the one you are most comfortable with. Hopefully, they also gave you the best price. If not, then tell them you have cheaper quotes and ask them to if they can match them.

It’s hard to believe, but it’s true. Here’s how this typically happens. You call into a steel building company’s one eight- hundred number to inquire about purchasing a steel building. You mysteriously get someone on the line from “inventory” or “production” or “shipping” who acts like he doesn’t know how he got your call. Since your salesman is acting like a average Joe from a different department, he plays dumb so he can’t answer any of your questions. He’ll typically get your info and building size and says he’ll call you back after he calls down to the factory to see if they have a building to fit your needs. He calls you back and of course has a building close to what you want. Now he conveys a cavalier attitude when asked questions and pretty much tells you the price in a “take it or leave it” manner. You think you might be getting a deal since this guy is clueless and maybe he is giving you a really good price out of ignorance, but you are really getting the wool pulled over your eyes. Click here to read about a consumer protection lawsuit that highlights in great detail how this scam works.

Most salesmen in the steel building industry work off of straight commission. This is why they are tempted to exaggerate, mislead, and on some occasions just lie. In many operations, the salesman prices out the steel building based off of where you live, the shipping and freight costs, and any accessories you requested. They come up with the amount of money it will cost to make and ship your steel building to you and then they tack on THEIR profit. For example, your building may cost the steel building manufacturer $10,000 to make and ship. If the salesman thinks you haven’t done your homework and are not getting quotes from other companies, he will tack on a high commission. In this example he may add $2,500+ depending on how gullible he thinks you are. However, if he knows you are shopping around, then he knows he has to stay competitive and can’t rip you off.

Steel building sales are cyclical and follow a seasonal trend. What does this mean to you? Buying when sales are down will help you get the best price. When are sales typically down? Winter and summer. If you can buy a steel building in January or July, then do it. Sales are slow in the winter because of the weather. When sales are slow, the salesmen are more likely to take less of a markup on your building because they are hungry to make a sale, any sale…even if they only make a few hundred dollars. In many states, people can’t pour a foundation and erect a building in the wintertime. However, if you live in a warm climate year-round, buying during the winter may save you some money.

Sales are slow in July because Americans typically vacation during July and are enjoying the weather. Again salesmen are likely to cut their commissions down in order to make a sale in the slow periods.

This sound obvious, but have you ever asked anyone who has had a bad purchase experience about it? Most people always say, “Something told me not to buy there.” Or, “I knew not to trust that sales guy.” Basically, people who have been burned ignored their internal warning signs. If you are getting bad vibes from a steel building salesman, go with your gut and deal with another company.

• How long the company been in business? Is your company AISC certified?
• Where are the building parts manufactured? Can you tour the plant?
• How does their literature look and feel? Do they have a web site?
• Is the web site professional looking? A professional looking web site takes time and costs money. Companies with flimsy web sites are probably dealers or brokers who buy steel buildings from a number of manufacturers and then mark up prices and resell those buildings to you at a higher price.
• Does their literature show and explain the building assembly process? If not, request additional literature on the assembly process.
• Are they members of their local Better Business Bureau? If so, how long?
• Do they have any un-resolved complaints against them with the BBB? Compare their answer to the bbb.org online.
• Do they have actions or judgments against them by the attorney general of their state? Again, confirm this online or with a phone call to your local attorney general. Do they have any industry affiliations or references? What is the guarantee on the building? Is it from the company or the steel mill that produces the steel?
• Do they work directly for the manufacturer? Probably not. Find out who manufactures the buildings and where the factory is located.
• Is your salesman a dealer, distributor or broker? Ideally, you want a salesman that works directly for the manufacturer instead of a dealer who buys buildings from many manufacturers and marks the prices up.
• Do they have any buildings in your area for you to visit?

This is a major purchase. Take the time to research the company you are about to do business with. In general, you will find that the major companies selling the steel buildings have been in business for a long time. However, the sales people working for these companies typically get paid on a commission only basis from satellite offices. Therefore, the company may be legitimate, but the salesman or dealer may take your money and never turn your order in! Imagine if a salesman/dealer takes $5,000 deposits from 25 people every month. He can do this for at least 8 months before people start to get concerned because one of the selling points used is “we can hold your building for up to a year until you get financing, permits, a job, etc.” At the end of 8 months, he has over a million dollars and you don’t have your building or your deposit. He can claim bankruptcy, move out of state (he has over a million bucks to do it with), and open up shop under another company name.

You can save a lot of money by purchasing a steel building in place of traditional wood or brick construction. The cost of the steel building kit is just one expense associated with your building project. You’ll need to account for the following expenses in your total cost:

• End walls – most Quonset buildings come with the arches only
• Land – if not already owned
• Land preparation – clearing, grading and getting the land level
• Concrete foundation – floating foundation Doors – additional building accessory Permits – check with you locality
• Delivery of the building – you want to know how much the building weighs and the cost of delivering it.
• Erection of the building –your time, your friends’ time, and, if needed, steel building erector wages
• Taxes on the purchase – buying online can save you a lot of money on sales tax. Ask your salesman where exactly he is located. If he is not in your state, you will most likely pay no sales tax. However, please confirm this with your state and local tax authorities prior to making your purchase.

Also, keep in mind you may have additional expenses for:

• Building Permits – each stage of building may need a permit: foundation, electricity, plumbing, etc. Electricity – running wires, breaker boxes, etc. Plumbing – pipes, sewage drains, toilets, etc.
  Insulation – various types for roofing and interior walls Interior finishing – drywall, primer, paint
• Furnishings – depending on building use, office desks, chairs, sofas, sound system, surveillance system Property taxes – additional taxes as a result of steel structure
• The ever-present “miscellaneous” stuff – door locks, window treatments, etc.

I recommend making a list of what you need to make your building function to your specified needs. Then, estimate the cost of each item either by looking online or going to a local building store like Home Depot. Finally, add 10% – 15% to the overall cost of the building and necessities. This end number is your actual PRICE TAG, not the too good to be true price quoted by the eager salesman. Knowing your exact cost is especially important if your steel building is going to be part of your business. Unless you are paying with cash, your actual PRICE TAG is the one you will need to secure financing for.