How to Beat a Lower-Priced Competitor - Page 2 - Contractor Talk - Professional Construction and Remodeling Forum

john elliott · 03-02-2008, 10:12 AM

Well, whether it's a speech or a pre-programmed set of questions designed to elicit the required response is hardly the issue. As Mike has pointed out, if it's being made to the wrong prospect then it's basically a waste of breath.

Perhaps that is too strong, but if anyone is trying to encourage a prospect who either needs or wishes to choose the low-baller to re-think, then they would be better to invest that time, cost and energy into finding better prospects.

John

Mike Finley · 03-02-2008, 11:29 AM

Quote:

Originally Posted by CBCron

Mike,
But...

No prospect is going to glaze over when a speech is given to separate yourself from the low priced competitor because no speech should ever be given in the first place.

The recommended sales approach is based on a series of questions. The questions are used to help the customer realize he cares about more than price.

Yes, you're totally correct, there isn't enough time or space to go into every aspect of selling on every post. "Speech" is certainly more of a generic description of the process rather than a specific and detailed and accurate description of sales.

However, the point is still accurate -- a customer will glaze over within 15 seconds if you starting talking about anything that doesn't interest them. If a potential customer knows he will get fired from work if he shows up late one more time and he is worried that having to meet with you every morning of the project might make him late if you aren't reliable-- talking to him for 10 minutes about how much experience you have at what you do will glaze him over in 10 seconds -- all he wants to hear from you is what is important to him, and in this case it is a reassurance of your being on time.

The point is the same -- talking to customers about things they are unreceptive of because of their predispositions or personal interests is a waste of your time. They will stand there and politely smile, while they think about what they had for dinner the day before.

How many idiot sales people do we all know who say such stupid sh*t as "I'm a great salesman, everybody tells me I have the gift of gab"

Show me any salesman that says crap like that and I guarantee you are showing me somebody who sells on price.

woodworkbykirk · 09-25-2008, 07:33 PM

possibly the worst story ive heard of that fits this thread is in regards to contractor who bid on framing a house for a home owner, he came in at 1/2 of what the other guys were coming in at for materials. when he did his take offs from the plan he only did it for 2 sides of the house and didnt double it, he didnt realize it until he went to frame the second floor. he had used up all his material for both floors on the first. needless to say he lost his shirt on this one.

with myself, when a homeowner says they have another guy who can do it for much less, i warn them of a few things, theres a good chance they missed something, they arent including little details in the price and are going to ding you on extras, they arent guarenteeing their work. the ony time i dont guarentee my work is when the homeowner wants to supply sub par materials and i tell them that

AJX4 · 09-25-2008, 09:21 PM

What's missing in the article si approach, how you look, what you wear, what you drive can really be considered in the big picture. how your hair is done, tattoos, if you wear a lot of jewelry or spend too much time sayin' hold on, i really need to take this call please hold (music) and you get back to them after 3 minutes and they've lost track of the idea. If your teeth are a mess, don't expect to get the job. show some priority to how you dress, make a point to keep your hair lookin' good so women will want to run their fingers through it and funs stuff good looking guys who aren't looking like 30 pounds of donuts walkng around usually get the jobs just on profile alone. it's discrimination but it affects the world in a lot of ways from business to personal. itsa fact jack and if you can improve your bottom line which is your appearance and not show up like sanford and son tthat will help a great deal in closing a sale. i always figured out the jobs i wanted real bad were ones i didnt really need or were ones i didnt get for a reason. i say do lots of advertising and let volume be your guilde and tell the price shoppers to take a freakin' hike. it's better to not look back.

Remodel Bud · 09-27-2008, 10:56 PM

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concretemasonry · 09-30-2008, 01:43 PM

If it is a shopper, simply do not quote if you do not think you have a reasonable chance of selling the job. - This is especially true if the bidder in a shopping GC.

In the last case, there will always be someone lower and you are just forcing the cheap guys down. - Who wants a hungry competitor and expects to get every job? A shopper without a lot of prices can then become a buyer. This is especially true when he needs a good contractor for a tough job.

If you continue to bid (over 5 or 10 times) and never get a job, just tell the GC you don't think it is worth the time to bid to him.

screening · 10-01-2008, 03:52 PM

Or demonstrate higher value in return for the higher price

**Floorwizard** · 10-04-2008, 03:38 PM

Quote:

Originally Posted by screening

Or demonstrate higher value in return for the higher price

Bingo!
There it is......

firehouse tree · 10-05-2008, 04:44 PM

The problem we are having is being out bid by individuals that have no insurance illegals with a ladder in there truck and chainsaws doing it next for nothing.We are in the tree business and we are getting killed we are in beaumont texas doing hurricane work and the these little so called companies are running rampid destroying legitiment compaines who play by the rules,How do You over come this problem.

Remodel Bud · 10-06-2008, 07:34 AM

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firehouse tree · 10-06-2008, 05:45 PM

We have done that they dont care they are looking for the cheapest price period.The prices we are our getting underbid for wont even cover the cost of paying my employees let alone equipment insurance ect,.What they dont understand if company or individuals hurt themselves do damage to there property or neighbors property the homeowner is liabale for that but they dont think that is going to happen to them.Its hard to swallow when you are giving them the lowest bid possible just to try to make ends meet.we speak through our work and how well we do it.

Remodel Bud · 10-06-2008, 07:07 PM

[.................

SethHoldren · 10-06-2008, 08:30 PM

Quote:

Originally Posted by Remodel Bud

All I can say is if the homeowner chooses these people, then they are not your type of customer anyway. Someone will get burned & they'll deserve it.

Exactly. You have to design your sales questions to weed these undesirables out as early as you can.

And that stuff about talking about them? Right on the money.

Remodel Bud · 10-06-2008, 08:40 PM

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SethHoldren · 10-06-2008, 10:50 PM

Yeah, asking questions of your clients and focusing on them is just sound people skills...preached everywhere from How to Win Friends and Influence People all the way to David Sandler's sales training. You can't lose!

rbsremodeling · 10-06-2008, 11:03 PM

Ok this is my last Gem that I am going to give away for free after this. The book is $9.99

When you go give your presentation/estimate and someone brings up price as their deciding factor.

Repeat after me this is your next line.!!!!!!!!!!!!!!!!!!!!

Ohhh I am sorry I did not realize you could not afford my services. I assumed you knew what a quality contractor would cost and was willing to pay that.

I did not realize you where price shopping and the quality of the work did not count.

Hint: you get two reactions here one is good and one is baaaadddd.

Remodel Bud · 10-06-2008, 11:18 PM

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rbsremodeling · 10-06-2008, 11:20 PM

Quote:

Originally Posted by Remodel Bud

JUST A JOKE>>>>>>>>>>NO OFFICIAL SALES TRAINING HERE<<<<<<<<<<<<<<<<<< ALERT!!!!!

Why, is price important to you?

Customer...yes

If I could do it for that price would we have an agreement?

customer.....yes

Well, unfortunately the price just went up another three grand?

customer .....why?

because I can tell, you're going to hire the cheapest guy & now I am giving you my price to fix it.

LOL exactly

daystoshort · 10-06-2008, 11:20 PM

i dont mind getting underbid.and when the underbider screws up and the client calls me to fix it i tell them my previous bid still stands.and they say but the other contractor has all ready started.and i say your calling me i didnt call you the bid is the bid.over the years i have goten 5 or 6 jobs this way.

Remodel Bud · 10-06-2008, 11:21 PM

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