Your Price Is Too High

Tom Rohland

Good morning.

Just fumbling thru an old collection of "goodies" and ran across this list of responses to people that say, Your price is too high.

1. Besides price is there anything else you are concerned about?

2. I know it seems like a lot of money; but I am confused, when we last talked; you said quality was your main concern. Now it seems your biggest concern is getting a low price. What has changed?

3. Did you check my references? What did they say? How about my competitors? What did their customers say?

4. I only wrote up what we talked about.

5. Please check the scope of both of our proposals; did they specify it the same way?

6. Did the other contractors tell you how they hire their people? Remember how I told you how we do background checks, and how many strange people apply to be painters. Do you want these people in your house?

7. What makes you think that the other contractor is planning on caulking, or priming, giving you two coats? Did they put it in writing? How do they train their people to do it? Did they explain that to you?

8. Are you really comfortable shopping for the lowest price?

9. It's better to charge a fair price than to deal with the problems that cutting corners leads to. Are you sure the other contractor is not planning on cutting any corners?

10. I know it seems like a lot of money; the cost of everything is going up. Can you believe how much the cost of insurance and gas have gone up?

11. I know you said you were not happy with the last paint job you had on your home. I am concerned that you are making the decision this time based on the same criterion as last time, low price.


A great list if I say so myself.

Can anyone add to these?

Behave now!

Tom
Ranger Painting & Pressure Cleaning, Inc.

Glasshousebltr

12. Who cut your hair man?

13. I would think you have become accustomed to the high cost of paint, judging from the work on your wife's face.

Bob

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Bob

Crawdad

In the lawn business, a lot of people judge by price only, so I've got a few...

A) I don't try to be the cheapest, I try to be the best.

B)Not everyone can afford to hire me.

C)There's a new "cheapest guy in town" every year.

In response to "The last guy was cheaper..."
D) Where is he now?

Grumpy

The FIRTS thing you should say when someone says "Your price is too high" is "comapred to what?" How can you formulate a rebuttal if you don't know what they are comapring you to?

You may hear "Joe, down the street got his for less." To which you reply... "Unless Joe had the exact same house with the exact same circumstances I can undersstand how it might be less. In addition you have to understand material prices and the cost of living goes up every year, thus so do painting prices. Sign here and we can lock you in at today's prices so you don't wait through another increase."

"XYZ was cheaper" to which there are many many replies. "Please let me see their proposal." That's the first thing I say. Call their bluff.

Humble Abode

6 is hilarious! Thanks for the list Tom.

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Just because some of us can read and write and do a little math, that doesn't mean we deserve to conquer the Universe. Kurt Vonnegut, (1922 - 2007) from the Novel 'Hocus Pocus'
The NAPP
Milwaukee Painting Contractor

Grumpy

Today a land lord customer I met with yesterday called and said "I think iw ant to go ahead with the work." He then added "Can you knock down the $1500 repair price to $1200?" to which I responded: "I have to tell you some companies will mark up their prices artificially so that they can offer you a discount to encourage you to sign up. I don't play games like that. Usually the price we quote the first time is the price you pay. There is just very little margin in a job like this."

To which he replied "Ok I understand I am going to let the tenant know you will be coming. I'll fax you the quote today." I have that quote sitting on my desk as I type.

The point being, sometimes you just have to be prepared to play hard ball with the customer. If they are asking for a discount they have already decided to hire you!!!

Mike Finley

Ah Grasshopper you have learned well!

We call it "trying somebody on" when you do that. They are just trying you on, the old it doesn't hurt to ask routine. Like Grump said, just hold your ground. I used to like to go one better and back them right up by raising my price back at them.

"Can you knock down the $1500 repair price to $1200?"

"Um, actually I slipped up when I said $1500, I actually meant $2000, how about we split the diffrence and I do it for $1800?"

Floorwizard

AHHHHH! hahahahaha

I love it!

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"in 20 years you will regret more what you did not do than what you did"

Grumpy

That's a variation of the take away close. I have used that one too, but only when I don't care if I get the job or not. I actually call it the "make or break" close because either you are going to close the sale or the person will quit bothering you.

One of my suppliers tried that one on me a few days ago... I said to him "You wouldn't just be trying the take away close would you?" He looked like a dear in head lights, that's exactly what he was trying to do. After which he assured me he was serious and honest. I told him i would think about it, to which a day later he called and said "I can give you a discount. I am not sure of how much. Send in the order and I will apply the discount to your final invoice."

I don't know what that close is called but I might call it a dummy close since only a dummy will fall for it. I replied "Does that actually work on people?" He didn't get my order and all this game playing ended up delaying my job a week.

Mike Finley

Actually, don't take it literally, while I am sure there are some clods who would actually say that in seriousness and slide the contract towards their customer and remain quiet...

...that's certainly not how I have used it effectively. Using it effectively takes finesse. Without a doubt I have said variations on exactly those words, but you do it in a half joking manner. You do it carefully so the customer isn't really sure if you are kidding or serious. If you do it right he can't get upset, because you immediately follow it up as soon as you sense he is upset with a chuckle and say "I'm just kidding." But you also do it so the customer isn't quite sure if you are kidding or not.

The effectiveness of it is that for a split second he gets a bit of a shock and senses the 'trying on' approach he used on you is going no where, in fact it is going back wards. Your kidding manner then totally relieves him and he soon takes on the mentality of thanking his lucky stars that everything is still good and the possibility still exists for the original numbers, and soon forgets all about trying to get a discount once he realizes you were just kidding, he often will just laugh and sign up for your original amount. It's very subtle and very effective when done correctly. It's totally not about forcing somebodies hand or being over bearing, that's just shows a weak negotiator.

Everybody is laughing, everybody is happy and the deal gets done.

Grumpy

No matter what... that is always the end goal.

With the only exception of possibly talking them into upgrades

paint slinger

mike like the way you think

KellyPainting

remember though never use I...it makes it personal.. and gives the customer someone to attack...always use we.. or the company.