Tag Archives: pole building prices; pole building comparisons

Competitor’s Quote: A Paul Harvey

Client to Hansen Pole Buildings Designer, Jim;I talked to a local lumber yard and received a quote from them for a similar 40×60 with attic truss at 40#/sq and they were about 20K lower than your quote.  The 54K that you quoted seemed a little high when I received it.  The other quote did not have as many doors but the difference made me wonder.  Did you include concrete or installation on our last go around?

Since we do not construct buildings, we provide building kits, the Hansen Pole Buildings price did not include labor to install, or concrete. So the answer to the question was – nope.

Jim;Something is definitely different as our price is always competitive.  Would you mind sharing this lower quote with me so that I can figure out what is off here?”

Jim;Hi, I haven’t heard back from you on this email sent yesterday.  I do not need the companies name and feel free to block that out as I only need the material specifications to compare the two quotes.  As I said something is definitely different for there to be this kind of difference and we do have a price match guarantee for like materials.”

Comparing Apples & Oranges

Comparing Apples & Oranges

The client actually did share the competitor’s quote with Jim. The quotes were Hansen Pole Buildings $52,972 delivered, Brand X $34,647 plus delivery. As our gross profit is nowhere near the $18,325 difference, I am thinking to myself – Wow, we can just have them provide all of our building kits, make more money and life would be so much easier!

There is, however, a Paul Harvey to this story.

It turns out the other guys left a few items off of their quote. OK, a lot of things.

This building has a gambrel roofline and the client was expecting a full second floor. The other folks made no provisions for the 2400 square foot second floor, nor did they have the four foot width stairs to get to it.

They quoted green lumber, not kiln dried. 2×4 wall girts and roof purlins, while we provide a minimum of 2×6. We provide closed cell closure strips at the top and bottom of all roof panels (keeping out flying critters and debris), not the other guys.

The list went on, and on, and on…..

Jim prepared a quote for the client which, as close as possible, including the items as the competitor had them (as we refuse to use green lumber, screws which are not powder coated, etc., it was not an exact match).

Surprise!! The “dumbed down” Hansen Buildings quote was now over $2,000 less AND it still included better features and delivery.

Jim stated; “Over the past 3-years I have done this comparison difference many times now with different competitor quotes and never once has a competitor offered the client a better price or product than HPB offers them. The bottom-line here is this client will be placing his building order ……  and, like the Guru says, when there is a price difference between HPB and the competition – then there are always product differences causing the price difference.”

As my mother used to say, “Enough said.”

Pole Building Prices: How Much Per Square Foot Is It?

I once overheard my lovely bride responding to this question with – if you make the building large enough, short enough, take off the walls, doors, and roof insulation – it is almost free!

While it doesn’t quite work this simply, she does have a point. Pole buildings come with an inherent economy of scale. Up to a certain point the more square footage a building covers, the less costly it is per square foot.

The majority of pole barns are constructed in areas where roof snow loads are fairly moderate, 30 pounds per square foot or less. With a given set of features, the price per square foot will decrease up to about a 60’ wide clearspan. With length, until a building length approaches three times the width, pole barn prices will decrease as well.

Consider what I will term the basic cost of “mobilization” – or getting things started. Regardless of size, every building requires the same paperwork. Every building requires the drafting department to draft a set of plans. Whether your new pole building has ten boards or ten thousand, it takes no more effort to place orders. Any time a key gets close to the ignition of a truck, the dollar signs start to turn and the truck really could care less about whether it has one board, or is loaded to its maximum capacity.

Adding to the building height as well as adding features will also increase the price per square foot. When doing a comparison between two companies, the same size building, can have drastic differences in costs: does it have only a single sliding door and no other features, or does it have multiple insulated overhead doors with electric openers, commercial steel entry doors with glass, windows, enclosed vented overhangs…the list of options (with costs) goes on and on!

There is nothing more frustrating to me than when a client says, “your building is thousands more than XYZ company’s exact same building.”  Invariably, I find out the buildings are NOT “exactly the same”.  In over ten years of providing pole buildings through the internet, I have yet to compare two buildings which were even close to the same size and features.  Far too often, when I ask for the competitor’s quote, to do a side by side comparison, my client suddenly can’t find the quote or he disappears altogether.

And when I do get the competitor’s quote, I like to do an objective analysis.  After all, I do want to be sure I am pricing my buildings fairly, or I won’t be selling too many of them if they are truly “overpriced”.  I am quick to point out what things we provide which are a higher grade or size, but I also fairly list the things the competitor offers which are “better” or of a greater value.  I give clients the same cost comparison I’d like to have if I were buying a pole building.  My Grandpa was a McDowell, so the Scotch blood comes out when I am shopping, both for myself and my clients.

Due to the inaccuracy of square foot pricing, every Hansen Building is priced using our “state of the art” proprietary computer program. Every piece needed for assembly is structurally verified for size, grade, and spacing. These results are then “real time” priced, with today’s actual material costs. You pay for exactly what it takes to construct your pole building, nothing more, nothing less, at today’s market prices.  Bring me your competitor’s quote and I will do a cost comparison with a same size/features building – for free.  Only then will you be able to make a choice based on knowing exactly what you are buying, and for a fair price.