I am sure you know that light fixtures are called luminaires. But did you know that when you are pricing luminaire projects outside of your home state, competitive pricing challenges may arise? Pricing is determined by the Lighting Representatives (Rep), who are paid commissions.
Here is a breakdown of the paid commissions.
1. Specification Credit (as much as 50%)
2. Local Project Credit (25%)
3. Purchase Credit (25%)
Total: 100% commission
The Specified Lighting Representative or the local Lighting Representative sets the rates on the luminaire project. If you could lose money on a project due to those constraints, wouldn't you simply increase the rates you control too? So, how can we fix this issue?
Morlights tracks pricing through our market to combat the attack of luminaire project rate creep. If we see an increase of 25% compared to other markets, we flag it. Here's an example. Say we have an out of state project in Oklahoma City, Oklahoma (no offense to Oklahoma, we just want to illustrate a point). The Oklahoma City Lighting Representatives provides us with line-item pricing. Then we compare it to our Chicago Market pricing. If they are not the same, we dive into the details.
The Peculiar Phenomenon of Overage?
The Lighting Representative's commission is included in the original $100 Halo Recessed Downlight Price. The $50 that was tacked on by the Lighting Representative is the overage. No one knows that $50 exists. This is the horrible side of the luminaire project pricing game.
Mastering Pricing How To, Morlights
To be fair, the Lighting Representatives acquire luminaire samples for free for clients, although the Rep agency paid for it. These Reps facilitate educational workshops and pay for lunch for lighting designers, contractors, distributors, architects, and well…everybody.
