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How To Handle "It Cost Too Much"

 
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Old 03-08-2012, 01:54 PM   #1
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How To Handle "It Cost Too Much"


It's too bad the old blogs are gone, but I remembered this one http://contractortalk.devel.escalate...ad.php?t=34924 and found it in the search. If I remember right, basically it said to tell the customer to make sure they are getting what they want when you have a lower priced competitor.

This article adds to it http://www.inc.com/geoffrey-james/ho...bjections.html I try and take steps to avoid hearing the words "It cost too much" in the first place. But they give you some lines for when you do hear it.

  • I hear you. The best products are often more expensive.
  • When you say it costs too much, what do you mean?
  • What has been your past experience with solutions like ours?
  • How do you know it costs too much?
  • What has been your past experience with companies like ours?
  • What are some of your priorities for saving money in this area?
  • Have you figured out the potential cost of not taking action?
  • What are your priorities in this area?'
  • If we set price aside for a moment, is this the product you want to buy?
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Old 03-08-2012, 05:43 PM   #2
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by KennMacMoragh View Post
  • I hear you. The best products are often more expensive.
  • When you say it costs too much, what do you mean?
  • What has been your past experience with solutions like ours?
    [*] How do you know it costs too much?
  • What has been your past experience with companies like ours?
  • What are some of your priorities for saving money in this area?
  • Have you figured out the potential cost of not taking action?
  • What are your priorities in this area?'
  • If we set price aside for a moment, is this the product you want to buy?
I like the ones that I bolded but the one I underlined sounds like more of an insult.

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Old 03-08-2012, 08:17 PM   #3
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Re: How To Handle "It Cost Too Much"


"Just because you can't afford it, doesn't mean it cost too much"...
My personal fovorite.
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Old 03-08-2012, 08:22 PM   #4
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Re: How To Handle "It Cost Too Much"


All kidding aside, I usually resort to something like..."maybe we should be looking at some less expensive options. Hardware, molding, etc, etc all come in less expensive options".
That's always allowed me to retain my price stance and put the pressure on them to lessen their needs. They usually want to stick with the higher grade "whatever".
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Old 03-08-2012, 09:46 PM   #5
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Re: How To Handle "It Cost Too Much"


I have told people that if they want to cut cost to hire the other guy. He must have less bills to pay then me. Ie: workers comp., Employment benefits, taxes, liability insurance, and the rest.
If he hurts himself on your property its there bill.
And just keep my number as they will need it to get me to the fix the crap he has done or finish it because he sees its more work then he thought and has walked away... lol

I have got work this way and i have lost a few too. No big deal. I have also been called back after one of the above things happened to them. two times this has happened..

I just laugh...

I hate when people read trend magazine and see $60,000.00bathrooms. And want them for 5,000.00... lol

Or the beat "Our there friend the carpenter said it would only cost 2000.00". then get him to do your bathroom.. Oh he is a concrete guy or a roofer.. I see!!!

not to say they roofer and flat work guys are bad but they know there prices and i know my prices...
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Old 03-08-2012, 11:31 PM   #6
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by Robie View Post
"Just because you can't afford it, doesn't mean it cost too much"...
My personal fovorite.
THAT is perfect!
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Old 03-09-2012, 12:04 AM   #7
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Re: How To Handle "It Cost Too Much"


Here is I how I handle it and with the people who want quality it works.

Do you agree that the other contractor is working to make a profit just as I am. We are both most likely trying to work for the same profit.

We buy more materials than them so we are again getting a better price but not by much so lets just say that we get the materials for the same price.

They probably said that there overhead was less that is how they can offer a lower price. If I do 150 projects a year and he does 10 projects a year can't I spread my over head over more projects so it is more likely less. We pay about the same insurance, workers comp, and licensing.

So there is only one place for him to save money to make money and that is with labor. We use great workers. Now there are great workers, bad workers and worse workers. If this is the only place they can cut cost and you have to pay for quality then logically they are hiring sub par workers to do your project.

I then stick my hand out and say your gonna love you new deck I guarentee it.
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Old 03-09-2012, 07:38 AM   #8
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Re: How To Handle "It Cost Too Much"


That's quite a lengthy reply.

I usually just say that per square foot it is actually the cheapest home improvement you can do and it is the most important.

If they say something about someone else's price and mine being a lot, I say that everyone has different operating costs and this price is what it takes for us to not only do a good job, but to be able to stay in business for decades to come.
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Old 03-09-2012, 07:46 AM   #9
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by Robie View Post
All kidding aside, I usually resort to something like..."maybe we should be looking at some less expensive options. Hardware, molding, etc, etc all come in less expensive options".
That's always allowed me to retain my price stance and put the pressure on them to lessen their needs. They usually want to stick with the higher grade "whatever".
If you create enough want for your finishes. Many people just don't realize the difference, and when you do your job they will see and feel it in your samples.

Once you do that and bring out the less expensive options that aren't nearly as nice they make a decision about value and price.
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Old 03-09-2012, 08:24 AM   #10
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Re: How To Handle "It Cost Too Much"


I preface this by saying that there will always be someone in the market "cheaper" than you, and it is not necessarily a labor savings. The reverse of that is also true (more expensive). The overhead for one company may be different than the next. One may have a facility and another work out of his garage. One might offer benefits, the other not so much, and so forth.

People buy on Company, Product, Service and Price... pretty much in that order. If enough emphasis is placed on the first three (i.e. - selling you), the last - Price, either makes sense for them or it doesn't.


"I hear you. I buy things too, and we all want a Mercedes for Nissan price. I think that's just human nature. The reality is, the best products are often more expensive and no matter how much I want a new Mercedes for $30K, because that's what I have to spend, it's just not realistic that is going to happen. But can I still get a new quality car for what I can afford? ABSOLUTELY! And the good news is, that's the case here... Now, there are ways we can make it more affordable for you, while still shooting for the Mercedes as the end result, but before we even discuss that and whether or not it's realistic or even feasible, I need to get a better understanding of what "too much" is... Is it $100 too much? $500? $1000?"
(and then shut-up and wait for an answer). If their answer is a figure that is beyond you ability to accommodate, and still provide for your family, (i.e. - great product, fair price), you can still try to do something different to save some money, but the reality is, the chasm may be too big and they may not end up being your customer. But whatever figure they come up with, you MUST bring them up if your pricing calls for it.

What you DON'T want to do is lower your price without them giving something up in return, as this comes directly out of your pocket and it opens up the door to ambiguity and as to how much they can keep drilling you down... Don't let that question linger... If you hold firm by making them give up something in order to make the price go down, they will understand your pricing has integrity. IOW, no games... just the facts, Ma'am...

Best of luck... 8^)
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Old 03-09-2012, 08:50 AM   #11
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Re: How To Handle "It Cost Too Much"


I've always been transparent with my costs and will explain how things are priced if there's an issue like this.

If costs are a serious issue, then I'll discuss if there are any bits they can realistically do themselves to lower the costs.
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Old 03-09-2012, 08:54 AM   #12
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Re: How To Handle "It Cost Too Much"


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Originally Posted by LickOfPaint View Post

If costs are a serious issue, then I'll discuss if there are any bits they can realistically do themselves to lower the costs.
That usually ends up costing US...
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Old 03-09-2012, 09:16 AM   #13
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Re: How To Handle "It Cost Too Much"


We always as the customer... Are you comparing apples to apples? We have a lot of non-licensed, non-insured people out there doing work. They can always do work cheaper cause they have less over-head. Plus, we provide the highest quality of service available and we stand behind that.
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Old 03-09-2012, 10:11 AM   #14
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Re: How To Handle "It Cost Too Much"


Bill V a tile guy who post here sometimes quoted a painter who a GC was trying to get him to lower his price to his competitors said to the GC

"Well he would know what his quality of work is worth" when asked about why the other guy was so much lower than the painter.
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Old 03-10-2012, 10:51 PM   #15
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Re: How To Handle "It Cost Too Much"


In my experience, when someone says it cost's too much, you have either not properly established value, or you do not have credibility with the client. "it costs too much" is really just a fear that you will be wasting money on they project that could be cut.
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Old 03-10-2012, 10:57 PM   #16
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Re: How To Handle "It Cost Too Much"


All the Home Improvement shows don't help either.
"We remodeled the entire kitchen over the weekend for $389.00...right on budget".
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Old 03-10-2012, 11:49 PM   #17
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by Robie
All the Home Improvement shows don't help either.
"We remodeled the entire kitchen over the weekend for $389.00...right on budget".
Who is this robie guy? I know there is a robie in the basement, but who the hell is this?
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Old 03-10-2012, 11:54 PM   #18
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Re: How To Handle "It Cost Too Much"


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Originally Posted by ohiohomedoctor View Post
Who is this robie guy? I know there is a robie in the basement, but who the hell is this?
I come up for fresh air now and then.
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Old 03-10-2012, 11:55 PM   #19
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by Robie

I come up for fresh air now and then.
I know.
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Old 03-11-2012, 12:45 PM   #20
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Re: How To Handle "It Cost Too Much"


The home reno show are the worst!!!! They very rarely state the true price. You bet give me a 100,000 and a crew of 50guys and we can do that. Also they need to start telling it took 6mths from start to finish not 30min... Lol

I had a young couple ask for an estimate on a bathroom reno. They wanted a wall moved and new windows and custom tile shower stall and tile everywhere. They also wanted spray foam. They also wanted the electrical panel moved and a new service installed. There budget was around 2500.00. i said they where a zero out on the low end If not more. They also asked if it would take more then 3days... Lol I at that time said i would not have a time spot for there project. I also told them to do some more research on the cost and on the time it will take.

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