Steel Building Tips

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.

Read over this list before attempting to inquire about a steel building. Go back to the list and see how many “pitches” were used on you. Each “pitch” is designed to get you to buy immediately. Every salesman knows that he has less chance of selling you if you hang up. You will find less pressure with a straight wall salesman than with a Quonset hut dealer. Here are some of the most popular pitches used to rush potential customers into buying:

• We have 10 buildings left on clearance and one of them happens to be the size you need.
• I have a model coming back from a trade show that you can have at a 50% discount.
• I can give you an additional 20% discount if you buy today.
• My boss would kill me if he knew this, but I’m willing to throw in a free garage door in if you commit to buying this building today.
• You need a 30×60? You are in luck. I have a cancelled building that is exactly that size. (A business can’t survive having dozens of “cancelled” buildings. A cancelled building is a sign that the salesmen are out to make a quick buck, customer service is lacking, and the customer was so unhappy he would rather forfeit his deposit than deal with that company. Not to mention the fact that no manufacturer has unlimited storage space to store huge steel building components.)
• If you buy now, we can store your building for up to a year. (No business has storage capacity like that. The company could go out of business in a year and you have no building because it never existed!)
• I’m looking at that exact size building on our loading dock right now. You can have it now! (He’s in a cubicle far away from the plant – if his company even has a plant.) Our competitors (fill in company names) don’t have their own factory; offer free shipping, a 50% discount, etc. If you sign today, you’ll be getting the best price available. Fax me the quote you have, and I’ll take it to my boss and see if I can beat it. (They’ll beat it, but what if your 1 st quote was grossly overpriced?)
• I can sell you that same building for $1,000 less than steel building company xxx. (Get this in writing and make sure everything included in the price is itemized that way you don’t get a building quote for less, but then have to turn around and spend money on doors, skylights, etc. Compare apples to apples.)
• I’d hate to see you miss this special because it ends today. Tell you what – I can get this discounted price aslong as I have your signature on the front of the contract by today at 5pm. We can work out the details afterwards. If you give me a deposit now, I can make sure you get free shipping. (Get any promises in writing.)
• I’ll fax a contract to you today. You sign it and fax it back so you can still get the discount, which ends today. I’ll send the original out to you today. (Don’t sign a fax copy of anything. Make sure you have seen and read the front and back of the contract before signing anything.)

You will hear variations of these same pitches. If you do your homework, get itemized written quotes, and make the buying decision at your own pace, then you will not feel the pressure of these tactics.

How will you use your building? Start buy making a list of what you need your building to do for you. If you don’t know what you want, you can be easily persuaded to purchase a larger, more expensive steel building without really needing it.

For example, think about the last major purchase you made – a computer, car, or house. Prior to speaking with a realtor, you knew how many bedrooms you needed, what neighborhood you liked, and what price range you were interested in, right? Same principle applies to a car. When buying a car, you based the purchase on your needs. You determined what you would use the car for and then purchased the right car to do the job. Here is a list of questions to ask yourself BEFORE you start shopping for a steel building:

• What’s this building going to do for me? What needs will this building satisfy?
• What size building do I need?
• Do I need column-free interior space?
• What type of doors do I want on my building? Overhead, sliding, walk doors?
• Where should I place those doors? On the sides or the ends?
• What accessories will I need? Gutters, downspouts, skylights, roof jacks, windows, etc. How tall do I need the building? Will I insulate the building? Will I finish the interior?