Can you negotiate DOWN while keeping your profits UP?

negotiate-lower-total-price-without-losing-profitYour SFS team prides ourselves on “living in the real world”. And I’m guessing in your world customers don’t immediately swoon and say, “Take me- I’m yours!” after you confidently present your price!

Nope! More likely they hit you with the the Smoke Screen Objection of “Let me check with my husband/ wife/ boss and I’ll get back to you.” And of course they keep price shopping! So Last week we learned how to “smoke out” that they think you are “TOO HIGH”!

So now it is “negotiation time”! GREAT! If the customer didn’t bite on one of my “Three Closing Questions”  I was always delighted to “re-write my recommendations”!

After all, you have already A) paid to make your phone ring and B) spent the time to perform your pre-inspection plus C) you are there face-to-face with your prospect! So simply say…

“Let’s see if we can give you the clean you need at a price that fits your budget…”

Now you should interview your prospect with questions like these:

1. “So do you ever move the beds in your bedrooms… no? Well then we could clean all the ‘open areas’ including a few inches under the bed and that will save you $83.12 which brings your price down to…”  Pause here but if they don’t spring at this lower price (many will) just ask…

2. “What about your family room? Is the furniture pretty much fixed in place back there? If so, we could…” (You get the idea.)

The secret here is to A) function as an “interested consultant” while B) giving your prospect the “Illusion of Control”. Do this by gradually lowering your price while also cutting the amount of time required to do the work! WONDERFUL! I often made MORE net profit on the smaller job! Seriously!

NOTE: You will be amazed how many times when you show up to do the job your new customer will say, “I talked with my husband and we’ve decided to just have you do the entire house.” (Even if they don’t isn’t “Half a loaf better than none” as long as you 1) make a profit and 2) create a long term client who may become a “Customer Cheerleader”?)

Commercial HINT: This “negotiating down” technique works great with procrastinating commercial clients after you have presented at least three “Frequency/Price Options”. (Never give just one “as-needed” price even if that is all your contact asks for!)

Restoration HINT: “Negotiating down” on restoration quality with a power mad adjuster can come back to haunt you big time! (Don’t ask me how I learned this one!) So how can you create “Cheerleader adjusters” that fight to get you into their losses? Click HERE for my free “How to Transform Your Restoration Business” Checklist!

Steve

PS Are you thinking about entering this great industry? Or are you new in business? Then don’t miss our new 3 day “Steps to Success” seminar March 30- April 1 in Chicago! Big Billy Yeadon and I will cover everything from making your phone ring to hands-on cleaning tips- everything to make you a success- FAST! Click HERE for more about STS ! You can also email Mike Cushing at mike@jondon.com or call him at 800-400-9473 x 2810

 

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