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post #1 of Old 07-05-2006, 09:56 PM Thread Starter
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Your Price Is Too High!

YOUR PRICE IS TOO HIGH!
Whats your response?


Share your sales techniques below

Nathan

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post #2 of Old 07-05-2006, 10:14 PM
 
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I generally tell potential customers that insurance,equipment maint.,fuel,chemicals aren't free.
I also remind them that none of our marketing claims to meet or beat another companies price, nor does it claim to be affordable(yes, we have one of those who does any house for $75) and gladly show them before and after pictures,as well as,letters of appreciation from past customers.
I then leave the decision in their hands.Do they hire the more expensive company that will show-up,deliver what they promise,has insurance.If they call great if not there are more fish in the sea.
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post #3 of Old 07-05-2006, 10:32 PM
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I tell them they are right. Everything these days is just too expensive. To gas up my truck on the way here cost me $100. The sealer I wil put on your deck just went up again. I just paid my $2800 Workman's Comp bill. I sympathize with things being so expensive Mrs Johnson, but everything these days is expensive. I run a legitimate business and I offer top rate service. I have been around for awhile and I will be here next year. I understand my service is not for everyone, but if you want the assurance that your most expensive investments, your house and this deck will be done right, on budget and on time, then I leave it up to you to make the decision.

This is a re-hash and most here have heard me say this but I will say it again for your benefit, Nathan. If you give the cutomer nothing to go on but price, that is the only thing they have to base their decision upon. It is your job during your sales presentation to make the customer well aware that your service is not fly by night. By the time it comes to price, my prospects usually breathe a sigh of relief that I wasn't twice as much as I actually quoted them.

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post #4 of Old 07-05-2006, 10:34 PM
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How else am I going to feed the lowballers I have locked up in the cellar?

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post #5 of Old 07-05-2006, 10:47 PM Thread Starter
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We had a bid folder that we showed everyone of our clients when we gave them the estimate.
In the folder we had about 20 different surveys that our clients had filled out that reviewed our work. We also had our licenses, insurance documents, and product info since we used high end stuff.

This usually went over well and when we showed them our license and insurance we also showed them how to check the other contractors documents and recommended that they do so.

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post #6 of Old 07-05-2006, 11:37 PM
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Damm how did Ken know what i wanted to type!

I've been in the Wood Resto biz the last 9 yrs and i've seen some customers living in 1/2 mil to 1 mil+ homes complain about high prices.It never suprises me anymore to hear it and some ways don't blame them cause i know i will try to get anything cheaper if i can help it.

I had a customer want a discount just to satisfy her ego to make her feel better about getting a cheaper price.

You might be able to find a cheaper price but you won't find a better quality job that we can perform for you! jeez i'm gettign cheezy it's getting late

I'll just be honest with them and educate them with my past exp. compared to their job and what needs to be done to do it the right way.Most people want it cheap but still get quality work and we all know that it just doesn't work that way.

Like the old saying "You get what you pay for huh"

Shane Brasseaux
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post #7 of Old 07-05-2006, 11:45 PM Thread Starter
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Originally Posted by Woodsavers Of Texas View Post
Like the old saying "You get what you pay for huh"
Exactly. I guess the key is that you have to sell value and not price.

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post #8 of Old 07-06-2006, 12:26 AM
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Exactly. I guess the key is that you have to sell value and not price.

I think quality/experience over value cause anyone can go buy cheap stain for their deck and have anyone apply it with no exp.

The quality of the knowledge I've learned thru experience over the years will help more than any book or web page will ever teach.

Most people believe everything they see or hear from a Home Depot commercial and will buy into the crap they sell.Then they take advice from some kid who is just working there for the summer.

The key to selling any job is to be fair and give the customer the confidence in your ability to do the job right.

Most big deck jobs with like 2000sqft or more usually have a high total price.Well you have quite a bit of wood to clean and seal so the total $$ amount fits the amount of wood to be worked on.

There are ways to throw in some freebies to clean IE:small concrete patio etc. to make them feel better about the value of work they are getting for their $$.

Also most people alway think someone contractor is trying to screw them so they are always on their toes.You have to make them feel comfortable and trust your comapny to get the job done right and not to take advantage of them.

90% of my jobs are referals so they are already aware of my reputation in cleaning and sealing wood.Most of my sales calls are usually pretty easy.

Shane Brasseaux
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post #9 of Old 07-06-2006, 06:26 AM
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This is how I answered this same question over at contractor talk. I got flak about why somebody should pay more just because I wear a uniform.


My answer usually something like this...

Yes is it is. Everything these days is too high. Gas is too high. Milk is too high. All these things are too high. I sometimes buy my milk and bread at the nearby Walgreens even though they are priced higher but it is Nearby and The clerks there are always polite to my kids even though they are rowdy. They are professionals and offer that added value of being close by and being polite.

My company gives you a tremendous amount for your money. There is Value in having a contractor show up on time and in uniform. Value in knowing that he's not going to be pee'ing in your bushes or staring at your 15 year old Daughter. Value in knowing that we give back to the community by paying the local city and school taxes.

If none of that is valuable to you, then that price IS too high for you to pay. Are we what you are looking for in a Pressure Washing Contractor?

Michael Kreisle, First Choice Power Washing LLC
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post #10 of Old 07-06-2006, 07:07 AM Thread Starter
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Originally Posted by Woodsavers Of Texas View Post
I think quality/experience over value cause anyone can go buy cheap stain for their deck and have anyone apply it with no exp.
But see... you did the same thing the customer does and leaves open a door for me to sell something. Value DOES NOT mean the cheapest price. It means the most for the money. You could charge twice as much and be doing 4 times the work and using better materials.

That is what I mean by selling value over price. Value does not mean cheap and often should not be cheap.

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post #11 of Old 07-06-2006, 08:01 AM
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But see... you did the same thing the customer does and leaves open a door for me to sell something. Value DOES NOT mean the cheapest price. It means the most for the money. You could charge twice as much and be doing 4 times the work and using better materials.

That is what I mean by selling value over price. Value does not mean cheap and often should not be cheap.

That is very true Nathan mis-read that earlier post you are correct.

Shane Brasseaux
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post #12 of Old 07-06-2006, 08:26 AM
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Quote:
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But see... you did the same thing the customer does and leaves open a door for me to sell something. Value DOES NOT mean the cheapest price. It means the most for the money. You could charge twice as much and be doing 4 times the work and using better materials.

That is what I mean by selling value over price. Value does not mean cheap and often should not be cheap.

Exactly! Value is also percieved. Not that you have to perform smoke and mirrors but most guys are, in my opinion, way too low on housewashes. Many houses we do people think need to be repainted. When we are done, not only do they not need repainting, the windows are sparkling, the gutters look brand new and all of those rust stains are gone from the foundation. The painter would have charged $3500 to repaint the house. Is it hard to show the customer the value of my $650 housewash that usually lasts two years?

A good salesman will never sell a product. The product is irrelevant. When you sell value, you become successful.

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post #13 of Old 07-07-2006, 01:51 PM
 
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Exactly! Value is also percieved. Not that you have to perform smoke and mirrors but most guys are, in my opinion, way too low on housewashes. Many houses we do people think need to be repainted. When we are done, not only do they not need repainting, the windows are sparkling, the gutters look brand new and all of those rust stains are gone from the foundation. The painter would have charged $3500 to repaint the house. Is it hard to show the customer the value of my $650 housewash that usually lasts two years?

A good salesman will never sell a product. The product is irrelevant. When you sell value, you become successful.
Housewashes don't last two years here, not in most cases! People DO wait 2 or more years, but their house is beginning to turn green again in 6 months. So the value comes down a bit.

I AM on board with getting prices up and all that, but on the other hand, for guys like me who aren't natural born salesmen, it is hard. Some people have a gift, or a practiced talent, for selling, and it is easy for them to sell a $650.00 housewash to some folks. Some of us don't have that ability, so we struggle, and tend to lower prices to compensate.

I will say, though, that no matter how good a salesman you are, you'll never convince me to pay $650.00 to wash my house. But that's just me.

What suggestions would you have for someone like me who struggles with the ability to sell well? Books? Tapes? Seminars? Classes?

See, the problem is, if you and I are competing in the same area for the same jobs, you'll get them every time, because you can much easier sway the customer to your side. We both may be offering the same product, and even the same price, but you have an ability to make the customer trust and believe you that YOU are the best man for the job. Where do the rest of us go to learn that!?!?

HELP!!!
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post #14 of Old 07-07-2006, 10:09 PM
 
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It's not really learnable easily.
it stems from high self esteem and confidence.

So many people try so hard to get a job just to lose it to someone who seems to just walk up and take em.
They just have that easy going, trust me, i know what I am doing, it will look great, everything is fantastic attitude.
that builds trust, and more important (Value)
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post #15 of Old 07-08-2006, 09:20 AM
 
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Mike W

Boy do I understand where you are coming from! I have bought the books, tapes, and been to the sales seminars, and still have difficulty in closing. But I have been able to increase my sales. It's a numbers game. The more you talk to the more you close. I agree you do have to sell value and your company, but before anything else, you must sell yourself. Meet & greet: Walk up, instroduce yourself and your company (smile). Shake their hand, ladies as well as men (very important). Hand them you business card. This helps to establish credibility. Find something to compliment them on (only if you can be sincere), and start asking questions. Ex: Nice car. Did you restore it yourself? Ex: Great home, have you lived here long? The goal here is to get them talking about themselves (their favorite subject). This helps to put them at ease. A potential clients first perception of you is someone trying to take their money. They are on guard to make sure you don't rip them off. At this point, they don't know that you are a honest business person, providing professional service with added value. By putting them at ease, this helps change their perception, by seeing you as a person, not as the bad guy.

Old adage: You have two ears, one mouth. Listen twice as much as you talk. If they talk enough, they will give you all the information to close the sale. You won't sell all of the time, but your percentages will increase.

Hopefully, this will help.
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post #16 of Old 07-08-2006, 10:42 AM
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Part One

There are certain guys that have born sales ability and yes, to a certain degree it is all about the confidence. From what I have learned over years of sales training seminars and finally becoming a corporate sales trainer the key to sales confidence are twofold.

One: Remove the fear (from yourself and your customer)
Two: Ask for the Sale


Removing fear from yourself is a multi faceted endeavor. The obvious is to know your job and perform it to the best of your ability. The second is to understand that a customer is even more scared than you are. He has heard (or experienced) horror stories about being ripped off. He just wants you to put his apprehensions to rest and coach him into believing he is making the right decision. That is the most important thing to understand. This guys WANTS the work done. He called you. You have not only a right to be there selling, you have an obligation as a professional to show him everything that needs to be done.. to let him know how you would address each issue.. to inform him of features, advantages and benefits of having this work performed.. to assure him that you have the best technique available for not only getting rid of the mold but for abating its future return and how you plan on maintaining his largest investment for him over the long haul.. to make him understand that you run a real operation, a legitimate business.


You have to get in front of the customer if you want higher quality jobs with better margins. If you like the thought of running around doing 3 jobs per day and working ten hours to make half decent money, this whole subject is not really for you. If you want one high quality job per crew and to be home by 3 pm every day so you can enjoy your family.. well, that takes more effort.
There are of course times when you don't meet the customer initially. You have a decision at this point to leave your proposal and hope the planets align, that no other contractors have come calling, and that the customer assumed it was going to cost more than this and calls you back to do the job. That's sheer luck and its a price sell. Don't confuse minimal selling effort as factual information your customers wouldn't pay more. If one applies minimal effort, what more can be expected but minimal results? That customer has no more ability to compare quality to quality than she did when she opened the phone book. She has price to go on, and she will call the cheapest guy. Period.

Case in point..
I raised my prices this year about 15%. There are estimates I walk out to and they frankly aren't worth my time. Lets say a small deck 16'x12' that might pay $450. I leave detailed proposals on these sights and you know what my close ratio is? Maybe 10% and that’s if I follow up with a phone call. No one has even called me and said, you left your proposal on my porch and we want to book it. If that's your "sales technique" you better think about that. That technique leaves you with one option.. BE THE CHEAPEST GUY AROUND.

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post #17 of Old 07-08-2006, 10:43 AM
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How To Begin - make a commitment
If you sit down and write a sales pitch using the following outline and practice it, and I mean practice it.. Christine is so sick of hearing my sales technique but when I am in front of a customer my tongue doesn't grow ten feet long when they throw in an unexpected question or two. Here is an outline:
Greet the customer with handshake, smile and eye contact
Soft compliment or other more idle conversation (compliment their home, talk sports, weather etc, ask what kind of dog or how old it is and tell them about your pooch)
Hand the customer a picture portfolio so he and the wife have a chance to see what type of work you do before you ever open your mouth to sell them anything. While they look, you go take measurements. “While you are gone, they will evaluate you. He seems like a nice guy, very professional” (all of this is evidenced by your demeanor, logo’d work shirt, clean appearance, vehicle, business card and your portfolio) You have overcome obstacle #1 of trust. People want to be sold but not by a used car salesman or phony. Just be genuine. It’s not about what you have said up until this point but how you have said it.
When you return is when you take over the pace. “Okay Mr and Mrs Johnson, can we sit down and I will go over what I have found” Let them lead you to the table but make no mistake, this is you subtly dictating the outcome. If you don’t take this initiative their hands will fly out and they will want the estimate and will gently guide you to the front door. If they offer you a drink of water or coffee, take them up on it even if you just drank a half gallon on the way to the job. Its about keeping dialogue open.
Start not by showing them what you have written by talking about your company. This is where you further differentiate yourself from Joe Lowballer. Discuss time in business, reliability, insurance and references. “If it’s okay with you, before we get into what I have evaluated in looking at your property, I’d like to give you a quick rundown of what makes my company a bit different from most contractors out there.” The customer is going to begin to understand that the price they have in their head may not jive with what their project is really going to cost. Reality is all contractors are not created equal. In fact, most have lousy business practice. Setting yourself apart is crucial.
Establish their expectations (crucial for overcoming objections later) “Mr and Mrs Johnson what are some of the things that are going to influence whom performs this job for you. What results would make you happy with the outcome of this job” If they are savvy they will give you high expectations and finalize it by saying something about the price as well. Take the time to kill this objection before it even begins. Spit back to them what they say.

Me: “So Mr Johnson, you are looking for your house to be free of mold, to have no damage to the siding, to have the rust removed around the foundation, for no plants to be killed, and for your windows to sparkle. Those are achievable goals with proper technique. You also of course mentioned price and you are like me, I like to shop for the right price but still maintain getting a quality job. Sometimes I get a little shocked when I find out what things cost..especially for work around the home. But I have found that paying for a company’s reputation, for them to be on time and accountable after the job holds its own value. You know as well as I do that we can hire a homeless guy from the shelter to paint our house and it would be cheap, but would we want to do that?” He’ll say no, or look at you with an expression of “duh of course not”.
“That’s why I have learned that comparing quality to price is an apples to oranges comparison. I have built my reputation and stayed in business by doing a job one way and that is the right way.”
Giving them the presentation/price ..D-Day, the time when your palms start sweating and your breath quickens. Maintain eye contact. Take pauses. Don’t try to spill it all out in one breath. Tell yourself, “They want me here, they need this work done and I know I will give them the best service they are likely to receive” The more you make them wait for the final price, the more they will chomp at the bit. What’s going on in their minds is a continuous mental upshift as to what price you will quote them.
When you have explained everything say to them, “The best part is Mr Johnson (turn your attention to him) I offer quality service, reliability and attention to detail you don’t find nowadays. I am not looking to get rich off of a single job, but I want to maintain your largest investment and offer you piece of mind (VALUE!). I would love to have you onboard as a long term customer. For everything I have discussed, including labor and materials your job will cost $650” Now ASK FOR THE SALE. “How about we get you up and running and make this one less project you have to worry about. I have next Tuedsay or Wednesday available, which is better for you?”

Half the time it closes right there. The other half, well the other half is where cajones and real technique comes into play.. overcoming objections. Typical are:
Thanks Ken, we will talk this over and get back to you

Okay that sounds good, we don’t want to book it just yet because we wanna get other estimates

That’s quite a bit more than we were looking to spend (ie too expensive)

I have answers for all of these. The main thing to do is keep dialogue open. I won’t get into letting the whole cat out of the bag about overcoming objections but no matter what you sell, the objections are usually the same. They are stall tactics and will kill a sale for weaker salesmen.

Do research on this subject and listen to these audio files:
http://www.marketsharp.com/experts/audio/
Start with A Close For Every Situation” It would not hurt to order any of these speaker’s full presentation or go to seminars where they speak.

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post #18 of Old 07-08-2006, 12:25 PM
 
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WOW !!! What Ken said!
That was Great. I hope you do "let the whole cat out of the bag about overcoming objections". If you've Had no sales training. a little. or a lot, This is Good stuff.
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post #19 of Old 07-11-2006, 05:18 PM
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McMoo, I figured that more benefit would come from some research first. I will be happy to post overcoming objections if anyone is interested. At this point it doesn't seem like it.

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post #20 of Old 07-11-2006, 05:22 PM
 
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I thought this was the Fenner school of sales training and was waiting for the next class to start.I didn't know you were waiting for someone to ask.
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