Closing The Deal

paint slinger

Any ideals on closing a sale? Talking to a sucessful buisnessman last night (not a painter) he offered an Ideal on bidding. Goes as follows: Explain to the home owner that he should get two other bids and that one bid will be high and one bid will be low, go on to explain how he should be leary of the low bid based on quality and leary of the high bid because the contractor is prob busy and will most likely put the home owner off for an extended period of time. Then tell the H/O to call after recieving the two bids and that you will come in between the two bids and complete the job in a timely manner with assured quality. Dont know if this would work or not many variables involved. Prob not....

mdshunk

It makes you sould too lazy or too dumb to bid the job yourself.

Why would you want to put two other fellow tradesmen to that effort (for naught) anyhow? That's not very nice.

paint slinger

Prob right....That why i raised the question here....I trust the in put from this site.

Jonesey

I always try out a few jokes to get them comfortable, then walk them through the entire process and point out what I'll do that the other guy won't while trying to get the HO talking as much as possible. If they see you as a friend, rather than a contractor, they won't even look anywhere else. When it comes to price, I tell them up front that "I'm fairly expensive, but then I like to think I'm one of the best." Then I'll tell them the price.

Actually, that plan works well for me. I close a lot of stuff that I think I'm high on. The market here is pretty tight but I'm still so busy I can't even get a day off.

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paint slinger

Sounds right........some of my customers have become my friends....put them on a christmas card list. Thinking bout throwing a party once a year for my customers........just a thought.

Mike Finley

If the guy telling you this is really a successful business man I think he better make sure he stays in his industry and avoids ever going into painting.

Some realistic issues -

Homeowners get 2 bids, one 5000 one at 4000, tells you the high one was 4000 the low one was 3000, ready to do the job for 3500?

Homeowner gets 1 other bid only, low baller tells him 2500, homeowner tells you he only got one bid for 2500, which sounds like the high one to him, ready to do it for less than 2500?

If you are disqualifying the lower priced contractor as being low quality, that means you are acknowledging the higher priced contractor as being of high quality. Some customers have no problem waiting for the better painter, especially after you have already said yourself that he would be the highest quality painter of the three, including yourself.

Since in order for the scenario you are describing to work you have broach the subject of working in a timely manner and assured quality, you are already going to have to discuss it with your customer if you would use it in this scheme, you're already 1/2 way there, why not just do that as part of a normal sales approach anyways?

As you might figure by now this scenario isn't really selling or closing, it's just a scheme, and really not too effective of one. I'm positive you will sell some jobs based on it, but you are certainly going to be limiting yourself to some very specific types of customers who will bite on this. Question is, are those the only type of customers you want as your referral base and more importantly what type of customers are you going to be eliminating from ever working for?

Features and benefits are the bases for real selling. Figure out a feature you offer (timeliness in completing a job) and explain to a customer the benefit to them (getting the job done in 1 week instead of 4 weeks), and you are actually taking the first footsteps on the road to being a salesman. I'm pretty sure in the long run you will be better off just avoiding this scenario he threw at you.

paint slinger

thanxs for the input....I knew when he brought it up sounded problematic. I have never operated this way and dont intend to start now.

marc

It's all about choosing the right contractor............Not the lowest or middle price. HO's have been told to get three bids.....get rid of the high and low and go with the middle guy. I ask them if I was the biggest hack out there, wouldn't I make sure my price was in the middle? Usually makes them think about choosing the right contractor and takes the focus off price. Focus on being the right contractor for your customers. If you focus on price the HO will too. Get away from price and talk about how you will do the job and what makes you different from the other guys. You know what you need to make. Would you do a job for less than you need? Be honest and give them the price you need.

Debookkeeper

There is also to much backfiring potential. If you tell the customer to get two other bids, how could you possibly know what they are going to bid. You could always come in higher.

The GC I work for has an annual Christmas party for clients and vendors, and subs. It's a great time.

Tscarborough

You bid on your costs plus overhead. Period.

dirt diggler

By not abiding by this rule, you're just going to end up cluttering your truck with "Employment Guides" from the grocery store on your way out from buying peanut butter and tuna fish (all of which you had to roll nickels and quarters for)

dirt diggler

oh, forgot the bread

The Design Guy

I work as an estimator for a large painting organization in Arizona. Firstly, I am thankful to the Lord that he has brought me to be successful in the painting industry. In addition, I may have some insight to share on working with customers.

I try to be as honest as I can with customers. This makes my job easier because I am left with nothing to hide and little to have to negotiate. When I tell customers that I am offering our best price, I mean it, and I always try to do this.

I also don't consider myself a "salesman." I do work in sales, but I don't try to sell people. I try not to pressure people into making decisions because I don't like being pressured. I have also found that customers who were weary of the project at its start tend to be weary of the project during its production as well. Instead, I try to present the best of what we have to offer as a company and I let them decide for themselves if our service is the best fit for their needs.

I know it sounds simple, but the world tends to make things more complicated and calculated than they need to be.

I hope this helps some.

Michael

copusbuilder

I would agree with your approach. People can feel pushy persuasive salespeople.
Just give yourself a little credit

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john elliott

Follow the good advice given above, assume the mind set that you are the best guy to do their job, and also project the feeling that you would like to do their job but that you don't absolutley need it, then make sure you ask for the sale

John

steve_gts

The problem with that approach is also what if you are unable to price yourself in the middle? Surely you wount take on the work at a loss?

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Construction Software UK | Sage 50 Accounts Shop

Brickie

I don't try & price it in the middle. The price is the price. I have no interest in participating in a reverse auction.

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dougchips

some profit might be a good idea

fez-head

This is exactly why I quit dooing fee estimates. It really pisses me off.

Tscarborough

Pfft! Profit. What do you think this is, a business!