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Hi,

I am new around here and recently started selling shower renovations and walk-in tubs. I went 4/4 off the bat and closed. However I had three cancellations in a row. The first one was a recycled lead (he cancelled after buying from us a three months ago).

The second bought some in-home safety products such as professionally installed safety bars and a railing. The third bought a new shower in her old pantry.

My question in for the sales pros out there: What do you do to help prevent cancellation from happening in that three day cancellation window.

I know I am a good closer but it seems like I loose the sale after leaving.

Any and all help is greatly appreciated.
 

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Our rescission form is separate from our contract. The three day right to rescind is on our contract of course, but we also have a separate rescission they need to sign.

The separate rescission is the last thing I lock down when writing up contracts and all other paperwork. What I generally say after getting everything else signed first (and looking them right in the eye, never breaking eye contact) is: "John & Mary.... as you know, whenever you sign a contract in your home, under federal law, you have three business days to change, alter, or cancel the contract completely without consequence. Is there anything we've talked about or agreed to that you aren't COMPLETELY happy and comfortable with.... that might cause you to cancel our deal? If there is, I'll go ahead and tear everything up right now." I then pick up the rest of the paperwork and hold it as if I am ready to tear it in half.

They always say to me.... "no, no, no.... we're good with everything." I then fully explain the rescission again, pointing out the rescission date, and what they need to do if they in fact do change their mind. After they sign the separate rescission, I then shake their hand again and assure them they've made a good decision to go with our company. I once again reiterate how pleased they are going to be with the quality of our products and our workmanship and remind them that they don't owe us another dime until we are finished and they are completely satisfied with their project.

I always did that when I was working in a one call close situation at other companies (and had very few cancellations), and still do it today. In the three plus years we've been in business, I've had ONE out-right cancellation, and another BIG job cancel, only to resign at a higher price because she wanted to change things up on the scope of the project and just didn't feel comfortable doing it with an addendum/change order.

Of course, I don't use high pressure, one call closing techniques any more. It's generally the second or third trip when I'm signing contracts now. By that time, they are pretty comfortable with me and the scope of the project, including the price. But, if you are expected to close in the first call, cancellations are just a fact of life. Especially today, with the internet and information available to potential customers.
 

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DavidC
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Are you using a cancellation clause close? As in, " Just sign here, no problem because you have 3 days to change your mind."

It's a good thing if that sounds like a bad idea. But I can't tell you how many I've seen use it. Nearly a 100% cancellation rate follows.

Might be good to tell us a bit about how you close the sale to begin with.

Good Luck
Dave
 

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If your closing sales without drawing out their objections, even though they may not have said anything, the objections are still there under the surface. Touch on those, a lot ofpeople make the mistkae of avoiding addressing competitors prices, warrenty, afforability ect.

Talk to them and feel around if they have any hidden reserrvations, most times they do.

If you MAF then they would call you to discuss their cancellations, not the company.
 

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I don't think I have ever been able to sell a job on the first visit. Normally there's at least a 2nd or 3rd trip back to dial the scope in and normally its adding more work each time. I guess if your not doing custom work and selling a re bath type system then the one stop sales pitches might just work but then if they have a proper bath guy come round and offer them a full custom for a lot less your never gonna land every job.
 

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Is this a Bathfitters type thing?

If I found out that a friend or family member signed a contract for an acrylic liner, I would talk them into cancelling too.

You need to look at your Process, and your product. Do you believe in what you are selling? I was offered a liner franchise years ago, and declined because I could not sell a product I didnt believe in, to me it was a quick fix that hides the old damage and mold.
 

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I don't think I have ever been able to sell a job on the first visit. Normally there's at least a 2nd or 3rd trip back to dial the scope in and normally its adding more work each time. I guess if your not doing custom work and selling a re bath type system then the one stop sales pitches might just work but then if they have a proper bath guy come round and offer them a full custom for a lot less your never gonna land every job.
One call closing is a learned "art." And, I hesitate to call it an art. It's a system of presenting and closing in steps (company, need, product), then getting a commitment in a pre-close asking if there is anything other than the price of the project that would stop them from going ahead and ordering the project today. Then you go through a series of prices and discounts geared toward them buying today and today only, to take advantage of some magical, whizbang deal you are authorized to offer today only.

I can remember my pre-close from my Pacesetter days almost verbatim.

"John and Mary, any more questions about Pacesetter? {wait for a no response} great.... when you do get around to doing this project, Like you've already said, you would feel more than comfortable having Pacesetter do the work for you correct? {wait for a yes response} Great.... any questions about the shape your windows are in? {wait for a no response}.... We saw how badly this project needs to be done and how you are paying for new windows whether you put them in now or not? {wait for a yes response} Great.... any other questions about my window? {get a no response} When you do eventually replace your windows, is my window the one you want to use? {wait for a yes response}."

"Great, well.... John and Mary as a direct factory representative, my main job is to insure a steady flow of orders coming into the factory on a DAILY basis. The only way I can do that efficiently, is to bring in orders every day, rather than having to go back two, three times or more to secure the order. Being a direct factory representative, I am authorized to show folks a price or payment that hopefully, makes them WANT to go ahead and place the order today rather than waiting for some reason."

"Now, if I can do just that.... show you a project price or monthly payment that excites you and doesn't take any bread and butter from the table, is there ANY reason, other than that price or monthly payment.... why you wouldn't go ahead and place the order with me today?"

At this point you shut your mouth and don't say a word until you get a response. It's pretty powerful and can help you close on the first call if you're really good. You're typically trained in all kinds of responses based in what is said next. I won't go into all of the details here (aren't you glad? ;)), but you keep negotiating the point of getting a commitment to buy today if the price is right. Once you get that, you go through your closing steps.

I made a LOT of money when I worked for Pacesetter back in the late '80's doing a one call close. But honestly, we were so over priced to begin with, even after offering huge discounts, I got tired of selling that way and had to get out.

I couldn't look at myself in the mirror some mornings. :no:
 

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Every now and then poster
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A friend of mine teaches this exact technique for a huge gutter guard company around here. I have gone on a few sales calls with him just to see it in action. Real greasey chit for sure.

I one call close jobs all the time but only when asked to. I have never discounted once, never. I do put an estimate in my clients hands on day one for many different types of jobs. Not all ofcourse but for things like basements, kitchens, and siding where all my costs are tangible and using my comodity item exclusion process I'm am able to provide a contract on the spot while going through my explanation.

I'd love to see the full versions of the Mary and John story..
 

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Dam I can't ever picture my self doing that in one call. What normally happens is I will go around to price the job. I mention some if the things they should do but they ain't thought about doing that at all. The last one was moving walls and re tiling a newly tiled floor. First estimate was based in what they wanted. Then once they thought about it more they wanted me to come around and go over the walls being moved but they wanted to keep the tile. Well a week later they call and want me to go over the tile work. It was much more work but I doubt I could have ever talked them into this on the first call.
 

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Always Learning
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Sears is real big on a big discount for same day signing. Just seems to high pressure!

As far as the op...sounds like your a good salesman, but your product isn't really desired. Great advise here by others.
 

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I would have contracted what they wanted and clearly and helpfully worked them through the change order process while working towards the project of their dreams which maximized their investment taking actual conditions into account..
 

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Sears is real big on a big discount for same day signing. Just seems to high pressure!

As far as the op...sounds like your a good salesman, but your product isn't really desired. Great advise here by others.
It is high pressure if it's not done real well. But, someone REALLY good at the process, does it all with matter of fact logic, and emotion, so it doesn't really seem like pressure at all. The weak minded souls fall hook, line and sinker.

I can't tell you how many times I got told at the door.... " I TOLD your office we don't want to buy any windows and not to send you out".... and walked out with a $5K order 3-1/2 hours later.

Anyway, on a refused entry like mentioned above, it was STILL your job to get inside the house, no matter what. Back then, the easiest way to do so was to ask to borrow the phone (no cell phones back then) so you could call your office and chew out the appointment setting dude.

Once you called and acted all mad at the office for wasting your time (the whole while, the phone room manager was saying all kinds of stuff trying to make you laugh) and then hang up.... You then asked to use the bathroom because your next appointment was always miles and miles away. Of course, they always said yes....

On your way out of the BR, you look for something, anything.... to start a conversation about. My all time favorite was the pictures invariably on the hallway wall. I would ask from the hallway.... "is this your daughter?" {yes}.... "is she married?" {no} "Does she wanna be?" {they always started laughing}.... BINGO, you had the ice broken and proceed to just start chatting with them about them (their daughter maybe) yourself, family, mutual interests etc. You got them to LIKE you during the next 30 minutes or so. And trust me, at this part, I was VERY good.

Then at some point, when you have a good rapport with them, you say something like.... "Well, I should get going, but hey listen, since I'm already here, and you guys are such GREAT folks., I don't get paid a dime, unless I do a demonstration. Can we take a few minutes and go over the company and our window so I can at least get paid today?"

And then you're into your demo. I can't tell you how many refused entries or the "I told them I don't have any money and couldn't buy any windows or siding right now" I got at the beginning, only to walk out with an order worth up to $10K.

It was exhilarating when it happened, but like I said, I just got tired of it.
 

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Tear it up?

Our rescission form is separate from our contract. The three day right to rescind is on our contract of course, but we also have a separate rescission they need to sign.

The separate rescission is the last thing I lock down when writing up contracts and all other paperwork. What I generally say after getting everything else signed first (and looking them right in the eye, never breaking eye contact) is: "John & Mary.... as you know, whenever you sign a contract in your home, under federal law, you have three business days to change, alter, or cancel the contract completely without consequence. Is there anything we've talked about or agreed to that you aren't COMPLETELY happy and comfortable with.... that might cause you to cancel our deal? If there is, I'll go ahead and tear everything up right now." I then pick up the rest of the paperwork and hold it as if I am ready to tear it in half.

They always say to me.... "no, no, no.... we're good with everything." I then fully explain the rescission again, pointing out the rescission date, and what they need to do if they in fact do change their mind. After they sign the separate rescission, I then shake their hand again and assure them they've made a good decision to go with our company. I once again reiterate how pleased they are going to be with the quality of our products and our workmanship and remind them that they don't owe us another dime until we are finished and they are completely satisfied with their project.

I always did that when I was working in a one call close situation at other companies (and had very few cancellations), and still do it today. In the three plus years we've been in business, I've had ONE out-right cancellation, and another BIG job cancel, only to resign at a higher price because she wanted to change things up on the scope of the project and just didn't feel comfortable doing it with an addendum/change order.

Of course, I don't use high pressure, one call closing techniques any more. It's generally the second or third trip when I'm signing contracts now. By that time, they are pretty comfortable with me and the scope of the project, including the price. But, if you are expected to close in the first call, cancellations are just a fact of life. Especially today, with the internet and information available to potential customers.
What do you tear up?

I made a mistake last week about the contractor license law regarding down payments for commercial work and I will never say I am positive again.

I think the 3-Day Right To Cancel is regulated by each state.

In California, a contractor has to give the customer two copies of the 3-day notice. One is so the customer can mail a copy for cancellation. We cannot present it to the customer and then tear it up.

In California, we also use what is called a 'Waiver Of Right To Cancel' when a job is an emergency. I get most of my customers to sign this waiver when a job is an emergency, but the customer's signature is as worthless as the paper because there is nothing in this world that can stop a customer from cancelling. All the customer has to do is call the police and lock you out.

We also have what is called a 'Mutual Cancellation Agreement' form. This form is very powerful to use when a customer wants to cancel. The customer calls on the phone and tells us they want to cancel. We tell them that this is absolutely fine and we tell them we are willing to cancel with no questions asked, but since we have an open contract we need to have the Mutual Cancellation Agreement signed.

We go to the customer's home and we say nothing. We fill out the cancellation agreement, get it signed, and then when the customer is relaxed and realizes that we are not pinching him with vise grips we go into our sale mode and re-sell probably 90% of the jobs after they are cancelled.

A walk-in bathtub is a big ticket item that in more a luxury than a necessity. I can see people getting cold feet in this economy.
 

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What do you tear up?
Nothing really.... I used to just pick up the contract, and any other paperwork they've already signed and hold it as though I'm going to tear it in half if they KNOW they are going to cancel or are uncomfortable in any way.

Anymore, since I don't one call hard close and I've already developed such a good report with them and they've invited me out to sign the paper work, I don't actually pick up the contracts and act as though I'm going to tear them in half. But I AM very specific on their FEDERAL rescission rights and let them know in no uncertain terms, that we follow the letter of the law with regard to them.


I think the 3-Day Right To Cancel is regulated by each state.
That may be, but it is a federal regulation under the FTC. It can be superseded by state statues which are tougher and more strict. Indiana and Kentucky's statutes are the same. I found KY's first:

The Federal Trade Commission's Cooling-Off Rule, as well as laws in Kentucky and Indiana, give you three days to cancel certain purchases of $25 or more. If a sale is covered by the Cooling-Off Rule, you have a right to cancel for a full refund until midnight of the third business day after the sale.


However, many consumers incorrectly believe that they have a right to cancel any contract within three days. If you buy something at a store and later change your mind, you may not be able to return the merchandise. For example, the 3-day right of rescission (also called “the cooling off rule”) excludes sales that involve:


[*]real estate, insurance, or securities;
[*]automobiles, vans, trucks, or other motor vehicles sold at temporary locations, provided the seller has at least one permanent place of business;
[*]arts or crafts sold at fairs or locations such as shopping malls, civic centers, and schools.
[/LIST]Generally, the rule applies if you buy an item in your home or at a location that is not the seller's permanent place of business. However, some sales cannot be canceled even if they occur in locations covered by the Rule.


The Cooling-Off Rule does not cover sales that:


[*]are under $25;
[*]are for goods or services not primarily intended for personal, family or household purposes. (The Rule applies to courses of instruction or training.);
[*]are made entirely by mail or telephone;
[*]are the result of prior negotiations at the seller's permanent business location where the goods are sold regularly;
[*]are needed to meet an emergency. Suppose insects suddenly appear in your home, and you waive your right to cancel;
[*]are made as part of your request for the seller to do repairs or maintenance on your personal property (purchases made beyond the maintenance or repair request are covered).


The Cooling-Off Rule applies to sales at the buyer's home, workplace or dormitory, or at facilities rented by the seller on a temporary or short-term basis, such as hotel or motel rooms, convention centers, fairgrounds and restaurants. The Cooling-Off Rule applies even when you invite the salesperson to make a presentation in your home.

Under the Cooling-Off Rule, the salesperson must tell you about your cancellation rights at the time of sale. The salesperson also must give you two copies of a cancellation form (one to keep and one to send) and a copy of your contract or receipt. The contract or receipt should be dated, show the name and address of the seller, and explain your right to cancel. The contract or receipt must be in the same language that's used in the sales presentation.

Kentucky Law:

Under Kentucky law, the contract or sales agreement must contain, in bold print this "Buyers Right To Cancel" section:

"If this agreement was solicited at your residence and you do not want the goods or services, you may cancel this agreement by mailing a notice to the seller. The notice must say that you do not want the goods or services and the notice must by mailed before midnight of the third business day after you sign this agreement. The notice must be mailed to: (sellers name and address)."

Unless the seller complies with this legal requirement, you have a continuing right to cancel the home solicitations sale by notifying the seller, in any manner and by any means, of your intention to cancel.

How to Cancel

To be effective, you must cancel in writing, and within 3 businesss days.

To cancel a sale, sign and date one copy of the cancellation form. Mail it to the address given for cancellation, making sure the envelope is post-marked before midnight of the third business day after the contract date. (Saturday is considered a business day; Sundays and federal holidays are not.) Because proof of the mailing date and proof of receipt are important, consider sending the cancellation form by certified mail so you can get a return receipt. Or, consider hand delivering the cancellation notice before midnight of the third business day. Keep the other copy of the cancellation form for your records.

If the seller did not give cancellation forms, you can write your own cancellation letter. It must be post-marked within three business days of the sale.

You do not have to give a reason for canceling your purchase. You have a right to change your mind.

If You Cancel

If you cancel your purchase, the seller has 10 days to:


[*]Cancel and return any promissory note or other negotiable instrument you signed;
[*]refund all your money and tell you whether any product you still have will be picked up; and
[*]return any trade-in.


Within 20 days, the seller must either pick up the items left with you, or reimburse you for mailing expenses, if you agree to send back the items.

If you received any goods from the seller, you must make them available to the seller in as good condition as when you received them. If you do not make the items available to the seller - or if you agree to return the items but fail to - you remain obligated under the contract.
 

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Skits are sketchy. I would say most of my sales have always been one call closes and many are from the driveway. The only time I feel like rushing a sale is when it's at the kitchen table.

To the OP without the optional skit John provided, finding the simple answers to why you are there and what they want, if your product fits their needs. It's that simple.
 

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Skits are sketchy. I would say most of my sales have always been one call closes and many are from the driveway. The only time I feel like rushing a sale is when it's at the kitchen table.
:thumbup:

Ahhh.... the kitchen table. That's exactly where we were trained to go after step two above (the warm up). Step three was "The Company."

:laughing:
 

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Most of my work is referrals these days. They usually have an expectation of going with me, so I don't need to put any pressure on them. Not that I would anyway, that is just cheesy, and would probably get me sent out the door in a heartbeat.

This is a small town and sitting and chatting about the project and the kids, or the classic car in the garage is the best way to sell around here. It is more about providing them a service than it is selling them a product or project.

I worked with a guy who would nearly always get the sale (siding) on the first visit. As he left, he always added "If I drop the price 500 bucks, or 1,000 bucks would that get you to sign today." It nearly always worked.

That always seemed disingenuous to me. Besides, smart people usually figure out you would keep that money if they had signed right away. I give them my best price and then we may haggle a bit about small things, but the main job is priced what it is.

I'm not sure how you get so many people wanting to cancel, unless your prices are so high that they have buyers remorse. Do you give them a list of the products and brand names? If you do, I almost guarantee they are shopping the internet and finding them cheaper. As it relates to the small grab bars and such.

And I agree, sell showers for the bathroom, not the pantry. That's where the bread goes. :laughing:
 
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