[Paul Staub]

There are quite a few companies using an old gimmick effectively around here to sell windows. They are offering an $80-95 trade in for each old window. I wonder if anyone actually believes that 55 year old rotted sashes have monetary value? I personally don't like gimmicks like this, but I guess if its working why not do it? I'm just getting tired of customers asking if I offer a trade in on their old windows.

I feel like too many people will make a terrible purchasing decision just because they think they are getting a "deal" or a "bargain" or a "special"

 

[jproffer]

I think I would attack from a different approach:

"Mr. Customer, I can assure you, without a doubt, that whoever is telling you that they will take $90 off of your bill for each window you buy, just for 'trading in' your old, broken, bare wood windows, is getting that $90 and probably more somewhere else. You are replacing them for a reason, right? Because they're junk, plain and simple. I don't want your junk. I'll be happy to haul them away for you, but I can't honestly give you $90 apeice for them and not hide that somewhere else in your bill, I just can't do it. Now, if you want me to SHOW that, I can, but the price you see on THIS bid, is the same price you're going to see on the other bid I bring you, but the other will have a few hidden cost mixed in, and a very prominant "$90 TRADE IN VALUE" stamped on it. But I promise you, the price will not change one penny."

 

[Grumpy]

I use a similiar tactic as JP above when asked to lower my price.

"Ya know, Mr. Customer, I don't like to play pricing games. Some guys will mark UP their contractos 10-15% so they give you a discount when you ask or offer you a discount to sign the contract the first night. In reality because they marked up your price, then marked it down, you are receiving NO discount. Do you want to play games or do you want new windows/siding/roofing at a FAIR price?"

The nice thing about that is you just told them "F U and your discounts", then built trust, then asked for the sale.

 

[bergenbldr]

I use a similiar tactic as JP above when asked to lower my price.

"Ya know, Mr. Customer, I don't like to play pricing games. Some guys will mark UP their contractos 10-15% so they give you a discount when you ask or offer you a discount to sign the contract the first night. In reality because they marked up your price, then marked it down, you are receiving NO discount. Do you want to play games or do you want new windows/siding/roofing at a FAIR price?"

The nice thing about that is you just told them "F U and your discounts", then built trust, then asked for the sale.

Reality is lot of customers won't sign unless i offer discount.For me 5% is the most i will discount and only because i sell the jobs myself,if i had a salesman to pay i figure i would pay 5% in commision on job.

 

[Mike Finley]

You have two choices whenever confronted with a customer who presents you with another companies sales gimick:

Either expose the tactic as a sales tactic if the customer has the mental ability to comprehend your explanation and then show the customer the benefits of your company not using a "sales trick".

Or what often works better since you now really have a good read on what the customers mindset is, is to us the effort and money that your competitor has spent to get the customer to that mindset and take advantage of it by reinforcing the tactic or even using another in its place.

Customers who are not able to see a sales tactic for what it is are often the best candidates to reinforce the sale through the tactic itself or use it to build additional profit into the sale.

For example you could counter that "Yes we offer a trade in too and it is even better, because I don't know if you read the fine print on the offer you are referring to, but that $80 trade in dollar amount is only available with their most upgraded windows or with 50 windows installed, we offer a $50 trade in, but we offer it on all our windows, or on only 5 windows installed..." or whatever fits your individual situation.

Whenever confronted with a customer presenting me with a competitors gimick, I always first stop and do a mental evaluation of which way will benefit me the most and what is the customers mental state of mind and ability to comprehend, then I choose the path that leads to the highest profits.

 

[Paul Staub]

"Ya know, Mr. Customer, I don't like to play pricing games. Some guys will mark UP their contractos 10-15% so they give you a discount when you ask or offer you a discount to sign the contract the first night. In reality because they marked up your price, then marked it down, you are receiving NO discount. Do you want to play games or do you want new windows/siding/roofing at a FAIR price?"

This is pretty much how I handle it. I was just commenting on how ridiculous some of these gimmicks are, and I find it hard to believe that people fall for them every day.

The most ridiculous that ive come across so far was a guy who gave a lady what she thought to be a $400 discount per window. The reasoning he gave was that the windows he had were a 2003 model and had been discontinued so he could give her them at $200 a window rather than the $600 per window they used to cost. He told her to get a quote from HD to prove that the windows used to cost $600 each.

I pretty much said that it sounds like youre getting a great deal but make sure you check the guys standing with the BBB and make sure he shows you his license and proof of insurance. She still has not replaced her windows.

 

[Mike Finley]

This is pretty much how I handle it. I was just commenting on how ridiculous some of these gimmicks are, and I find it hard to believe that people fall for them every day.

Just goes to prove that: 1) Customers want to be sold, 2) One of the biggest things you can do to reduce your income is assume anything in regard to your customers. EI - how smart you assume they are and what will work or won't work in sales. Only doing it and gauging the success or failure of a sales technique is the real acid test of if it works or not.

Also:

Barring anything that is illegal or unethical -- think about who uses these "sales gimicks" - in the end the companies that are using them are usually bigger and more successful than you, the owners have bigger houses and drive nicer cars and spend more time on vacation.

 

[Paul Staub]

Barring anything that is illegal or unethical -- think about who uses these "sales gimicks" - in the end the companies that are using them are usually bigger and more successful than you, the owners have bigger houses and drive nicer cars and spend more time on vacation.

Keep in mind that I work for Home Depot, I dont think the owners of other companies have better cars than the owners of my company.

And I agree totally with your first statement. In a way the nice guy approach is a sales gimmick too. Its the one that I prefer and some customers appreciate it.

I have had plenty of customers who appeared to be dumb as rocks and dirt poor whip out a $25000 credit card or write me a check for $10000. I try to prejudge as little as possible.

 

[Mike Finley]

Keep in mind that I work for Home Depot, I dont think the owners of other companies have better cars than the owners of my company.

Actually, I'm pretty sure they do. Since Home Depot is a public company, I'm pretty sure the majority of the owners of Home Depot make less then the private window companies that are aggressively selling in your area. :cheesygri

Keep in mind that Home Depot employs plenty of "sales tricks" also each and everyday in it's marketing and advertising.

I run up against these all the time, the one that comes to mind most frequently is their solid surfacing sales department and their $39 a square foot advertised granite counters. No different then what you are facing from your private window competitors. I continually either have to explain the fine print of the $39 only covers 3cm granite, standard edge, group A colors, blah, blah, blah,

or I turn it around just like Home Depot does and close them the same way they do with the super low introductory price and the bump up until they get to the actual product they really want which rarely is the one offered at the low introductory price. The same way Home Depot gets people in for granite counters I can do the same by quoting the granite as "standard granite" then bump the customers up after they choose me to do the work by discussing the radius corners that aren't included in that, the 3cm granite, the base selections, no sink cut out, no back splash...

I've got some new advertisements that I am finalizing for decks which include a free Weber Grill in the ad, guess which one it will be? It won't be the $1500 Weber Summit Platinum, nor will it be qualified by a $1500 deck.

 

[Paul Staub]

Actually, I'm pretty sure they do. Since Home Depot is a public company, I'm pretty sure the majority of the owners of Home Depot make less then the private window companies that are aggressively selling in your area.

The current owner of THD at home services inc (Mickey Esposito) Drives around in a 2 story rolling palace with a swimming pool, hot tub, and state of the art entertainment center. As well as multiple living quarters.

Up until about a year and a half ago windows, siding, roofing, fencing, and gutters were handled by RMA and IPUSA. Home Depot Bought both of these companies to form THD at Home Services inc.

Installations of kitchens, window dressings, doors, bathrooms, flooring, and pretty much anything else are installed under the name of "at Home Services"

"at Home services" and "THD at Home Services inc." are for the most part still seperate entities even though both are owned and run by Home Depot.

Home Depot does not use the sales tricks that you mentioned on products that are sold furnished and installed by "THD at home services inc" There is no cheap window, siding, roofing, fence, or gutter that can be used as a bait and switch.

"THD at Home Services inc" does employ trained salespeople to go into homes and get orders, we are not the same as the untrained hourly quote givers in the store. And we are also not totally innocent of sales tactics, however we do not give phony discounts or use a discount as a pressure tool like some companies do. Our sales tactics are mostly just trained salesmanship and loaded questions. For example "Mr. Customer your project comes to $8576, you can get it started with 25% down or monthly deposits of $225 which works best for you?"

You are right though, without some kind of sales tactic nothing would ever get sold. I prefer not using gimmicky discounts and the like.