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406 Posts
When you discount your price 100% of the discount comes out of your profit because all other expense are fixed. DONT DO IT. A discount of $300 off a $6000 total project price is 5% off the total price but it's a huge percentage off your profit margin. Want a shocker? Based on your profit margins, figure out what percentage a $300 discount would cost you off your profit margin on a $6000 sale. It's huuuuge.
Here are some proven strategies to overcome price objections.
1. Feel, Felt, Found - I am sorry you feel that way, Another person I spoke to A WHILE AGO felt that way at first glance like you do. What they found is they were able to understand the pricing better when we reviewed the details of what is required to meet their specifications. Let's review the scope of work step by step to see if there is something we can remove to get the cost down.
2. Reduction to the ridiculous - I think we can agree the benefits of this project will last for well over 20 years. That's almost 8000 days. The $700 price difference of the life of a project equates to pennies per day. Putting it that way are you sure you want to take something off the scope of work to save a few pennies a day?
3. Tell me what you like takeaway - Tell me what you like about doing what we have discussed (Help them list the benefits they told you they wanted) Which of those benefits would you like to remove to lower the cost of your project?
4. Refocus to best value not lowest price - While it is true I am not always the lowest priced option, most folks I speak to are looking for the best value available more than the lowest price. I think we can agree that means choosing long term quality and satisfaction over something that may be priced lower but will fail to meet your expectations over time. I have been careful about estimating all the costs of your project and we have gone over them carefully to be sure they meet your requirements perfectly. Does it make sense at this point to remove some of your requirements to lower the cost?
There is a thousand ways to overcome price objections. Don't get caught unprepared ever again. If this is a real ongoing problem for you then do this
A. Google "Overcoming price objections"
B. Spend a few hours reading dozens of approaches to find what you like best
B. Choose or adapt those that best fit your personality and USP
D. Practice them with the dog, wife, parent or buddy until you have the ability to employ them with fluid grace and comfort
STOP SUFFERING, FEELING AWKWARD, LOSING SALES AND DISCOUNTING. LEARN IT! NOT HARD! GOOD LUCK! HAVE FUN WITH IT! :thumbsup:
EDIT: I just did a search on Contractor talk for "objections" There is a massive amount of information on here about overcoming customer sales objections specific to contracting. You will find the same objections coming up over and over. Once you master them, you can focus on something else to advance your business because your sales skills will be in the bag once and for all.
Here are some proven strategies to overcome price objections.
1. Feel, Felt, Found - I am sorry you feel that way, Another person I spoke to A WHILE AGO felt that way at first glance like you do. What they found is they were able to understand the pricing better when we reviewed the details of what is required to meet their specifications. Let's review the scope of work step by step to see if there is something we can remove to get the cost down.
2. Reduction to the ridiculous - I think we can agree the benefits of this project will last for well over 20 years. That's almost 8000 days. The $700 price difference of the life of a project equates to pennies per day. Putting it that way are you sure you want to take something off the scope of work to save a few pennies a day?
3. Tell me what you like takeaway - Tell me what you like about doing what we have discussed (Help them list the benefits they told you they wanted) Which of those benefits would you like to remove to lower the cost of your project?
4. Refocus to best value not lowest price - While it is true I am not always the lowest priced option, most folks I speak to are looking for the best value available more than the lowest price. I think we can agree that means choosing long term quality and satisfaction over something that may be priced lower but will fail to meet your expectations over time. I have been careful about estimating all the costs of your project and we have gone over them carefully to be sure they meet your requirements perfectly. Does it make sense at this point to remove some of your requirements to lower the cost?
There is a thousand ways to overcome price objections. Don't get caught unprepared ever again. If this is a real ongoing problem for you then do this
A. Google "Overcoming price objections"
B. Spend a few hours reading dozens of approaches to find what you like best
B. Choose or adapt those that best fit your personality and USP
D. Practice them with the dog, wife, parent or buddy until you have the ability to employ them with fluid grace and comfort
STOP SUFFERING, FEELING AWKWARD, LOSING SALES AND DISCOUNTING. LEARN IT! NOT HARD! GOOD LUCK! HAVE FUN WITH IT! :thumbsup:
EDIT: I just did a search on Contractor talk for "objections" There is a massive amount of information on here about overcoming customer sales objections specific to contracting. You will find the same objections coming up over and over. Once you master them, you can focus on something else to advance your business because your sales skills will be in the bag once and for all.