Today's price objection....

Shane Deubell

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Good grief, only in america would a janitor complain about making $800 for a half days work.

:errf:

More then anything we need cash reserves to grow a small business.
$50k, $70, 100k. Not saving that kind of money sitting at home full of pride.
 
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WillS

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I'm super proud of what John and I have built/accomplished and how our customers feel about us and I'm not afraid to let people know we are different and we are better.

Best thing I've heard all day. Being proud of what you built, and how your company services its' customers, nothing better. Those are the type of small business owners that will continue to grow and last IMO. The high confidence in your service makes people want you. "Oh your price is to high" "Well yes, because we do a great job" And ya better be doing that good job, or fixing any mistakes that may arise.

The professional look, manner about it is everything. We've been gradually able to higher pricing every year because of our growth. Return customers are even not having a problem paying the hire price. The results, because we know we are getting better. Some guy gave us a compliment saying we are "Stanley Steemers without the high pricing". I have always heard Stanley not to be great, just high priced (well depending on techs), but I get what he meant about the corporate look, service, results, etc. A lady called and asked us about our services compared to others (this is where the seller comes out of me) and when I gave her the price she said that is way to high. When she said she will be calling around, I told her to make sure those companies include the pricing upfront and what they offer all upfront. 5 minutes later she calls back and says, lets book it, I just don't have the time to call around. Boom, scare ya a little into what really might be out there?

I would have included a free room with this, which seems like your doing more with $10 off every room. Maybe have them leave your magnet on the fridge for when the next home owner moves in, or have them refer you to that home owner. :) Add on another customer hopefully plus you might get the seller as a future customer for their next re-homing. Long term thinking of retaining a customer is a must.

Great, short to-the-point response email you sent back to them. I'm a constant reader of articles online for entrepreneurs, small business owners, see the one below for some good info on emailing customers. (Not you Meg, you already got it down. Really nice response).

email.jpg


http://www.entrepreneur.com/article/237292
 
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Dolly Llama

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Good grief, only in america would a janitor complain about making $800 for a half days work.

:errf:

More then anything we need cash reserves to grow a small business.
$50k, $70, 100k. Not saving that kind of money sitting at home full of pride.


knock it off, Deubell
don't you know we're the new ICS, where CCers only clean for fiddy cent-o-sq +25sf for a shot of S'Guard ?
(yes Ma'am, that walk in closet will be an additional $75)

No one is foolish enough to lower themselves to clean a 600sf empty for a mere hunnert 'n quarter

and we're only good with slinging sCampoo around if we can gross $250 an hour (we'll lower our "high standards" for that amount):errf:

now stop being a broke d1ck and get with the program, Boy ..We'z hi-rollahs here...

..L.T.A.
 
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There's a tough pill (sort of a rule in sales)to swallow that's been around a really long time. Goes something like this. "When the value exceeds the price, the customer will purchase". As cleaners we can believe all we want about our own value but it's the customers perception that matters in the end. We usually get one chance to comunicate what we believe to be our value but we can't cram the price and the value down their throats. She didn't purchase. Perhaps is wisest to move on.
 
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ruff

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This is one of the rare occasions in which all of you are right. From the Janitor brothers (you know who you are- "A buck is a buck no matter which side it falls on.") to the more expensive service provider.

And that's the beauty of the business we are in: Different companies, different goals, different circumstances, different niche.

The slow companies that need to keep their employees busy (at least employed) need to do what they need to do. On the other hand the business that serves the top $ niche and is quite busy, can't discount their services to the level of damaging their brand. What will your top paying client think, once they found out that you gave the same cleaning for half the price?

Will they be angry? -You betcha.
Will they call you back- Dream on.

However, there are ways around it.
You can offer a discount with a lesser level of service (like the 10%) off, that Meg offered. You can offer a larger discount, say, if they're willing to be available any time the next three days. It will allow you to combine jobs and reduce your cost.

It always helps if you understand where the client is coming from: She's selling her home. She will not get the health benefits of a great cleaning. Every single penny she spends on the house beyond making it look sell able, may as well be kissed goodbye. Gone.

Therefore, a "lesser" cleaning (does anyone dare say bonnet) may serve them better. It will cost less yet you'll make at least the same hourly income and, if done correctly, the carpet will look just as good. If your famous conscience does not allow you to get this "low"? Give yourself and the false pride, a kick in the butt. Or call Larry C., he'll do it for free.

Because, if you are clear and upfront about what they are getting from bonnet cleaning versus steam cleaning, now they are making an educated decision and you're providing a needed service.

You may be surprised, after the explanation they may choose to go the more $ way, as people are very proud of their home.
 
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Dolly Llama

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Or call Larry C., he'll do it for free.

nah..too busy right now .(Thank God)
I will take cash though.


Not suggesting/implying anyone here does this, but what I've observed of the "hi-roller" pricers are their marketing with perpetual discounts.
be it 10-20% "act now" or pc of upl free , or yada yada yada .
if i was one of their custys, why wouldn't i just wait til the discount comes ??

and for the record, I'm not knocking Meg's derision either ...she's great to have here ..she's enthusiastic, energetic, and helpful . What's NOT to love about her!!


..L.T.A.
 

Jim Pemberton

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Part of how price objections are handled, and beyond that how pricing is established, has a great deal to do with unique cultural differences between each area.

I think how Willy looks at things in urban British Columbia, Marty in Alabama, Larry in northeast Ohio, and Meg in southeast PA are all going to be somewhat different, and in some ways significantly different.

That's not just because of income level, but also differences in the "culture" of the area.

While I know each of you would find a way to thrive in the other's market place, I'd gently suggest you'd all have a bit of culture shock while you adapted.
 

Goomer

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I doubt if it is just a coincidence that the members that advocate always "sticking to their gunz", due to an unwillingness to compromise their level of service and quality, are already well established, and "don't need the business".

Although I'm sure most like to believe that their decision is based on their uncompromising quality standards, I would be curious to see what their decisions would be if they were new to the business and had a slow week, were behind on their bills, or just trying to make ends meet.

I think in most cases, it has a lot more to do with what you have in your pocket at the moment, than ones uncompromising standards… .although it doesn't sound as romantic.
 
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Desk Jockey

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I think in most cases, it has a lot more to do with what you have in your pocket at the moment, than ones uncompromising standards… .although it doesn't sound as romantic.
How busy we are can certainly affect the rate we charge. When we are busy we snub our nose at a lot of work. When we are slow we will bid on work we would bypass in busy times.

We might give them one of our discount cards or offer them a winter special but leave them knowing that it is a limited time special offer.
 
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PrimaDonna

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I would be curious to see what their decisions would be if they were new to the business and had a slow week, were behind on their bills, or just trying to make ends meet.

Agreed. We are lucky enough to be in a position to be able to do this. I realize it's not the right response for everyone. No one is right or wrong in how they handle it....just different. What works for us, may not work for the next guy. But I do so enjoy hearing other's input and what they would do.
 

ruff

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nah..too busy right now .(Thank God)
I will take cash though...L.T.A.
Larry, the suggested "free" was the kick in the butt for false pride adjustment.
I am surprised you no longer provide that valuable service for free, yet heartened that you'd still do it for cash.

..L.T.A.?
 
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Brian H

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What we can do is just focus on the open areas. It means that we would not have to move furniture, clean under anything and the lay down a protective barrier between the furniture and carpet during the drying process. We are cleaning less area and it’s less labor intensive since we aren’t moving and tabbing the furniture. If you would like us to do just the open areas of each room we can extend $10 off per room. You have a total of 10 rooms (with the double sized ones), so that would be $100 less than the estimate I sent you (equivalent to 10% off).

We clean trafficed or open areas all the time. We have had it happen though when the new homeowner will call and want a reclean because we missed areas. They were told by the previous owner that we cleaned the carpet but failed to mention that they only paid for a partial cleaning.
 

Shane Deubell

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We are never giving a "discount" or taking a profit margin hit.
What we are doing is increasing production and taking more risk.

Some jobs i am comfortable with it like large carpet cleaning, i know we have room.
Others like vct, colorseal, small jobs in general, we dont have room.

When someone says they are standing their ground what it really means is staying in your comfort zone.
Which is fine.... Its a free country.

My risk tolerance over $500 is super high, willing to roll the dice.
Not thinking of it as giving a discount.

All the other stuff about your brand and keeping employees busy is nonsense.
 

SamIam

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We aren't losing jobs, and if we were cause they don't want to pay our prices, I'm okay with that.



No. We never base our prices off what the competition is offering. We offer a different level of service and value than our competitors. If someone isn't able to see that and wants to select their provider based on price, I'm okay with the "competition" having them.


Exactly why I didn't just discount.


It wasn't a direct referral, but she did see our van 2 doors down. I took her call as a kind of "keeping up with Jones'"or if they use you, then that is a good enough endorsement of your company for me. She went so far as to tell me how the floor plans of their house differed from that of the neighbor that used us. I also think she wants to use us, but maybe wasn't expecting the price to be what it was. We were the first quote she got (if she is even getting others). She didn't say that we are more that other cleaners she spoke with and she also didn't just dismiss us when she got the quote or she wouldn't have bothered to email me back. I think she wants us to do the work, but just needs to justify the cost and see if there is anything she can do to lower the price. Perhaps if she were staying in this house, she wouldn't have an issue with dropping $1k to clean. But its a chunk of change if you leaving.....

If we get it, we get it, if we don't we don't. I thought it would make for a good post and wanted to know how others have or would handle this. Cause, we will all face it at one time or another.

Meg

I agree she was just asking and gave 2 reasons to how, moving out and not looking for perfection.

It's a good response open area cleaning or drop areas that might not need it!

It's ok to ask for a discount, I wonder how many here pay for every service with out a little haggling. Like with an advertiser, and such.
 

ruff

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All the other stuff about your brand and keeping employees busy is nonsense.

Posts like these belittling everybody else but ones business decisions brings to mind a Japanese proverb: "The frog in his pond sneers at the ocean."

What works for you Shane, I have no doubt is the right decision for your business. I am quite sure that you have given it all due considerations. Dismissing other businesses' point of view as nonsense, doesn't make you right. It just makes you "froggish".

Should I go feed the horses Richard?
 
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Desk Jockey

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Oh we also do the same thing to our vendors or service providers.

Lockhart don't read these. LOL

"Is that the best deal you can offer?"
"What if I buy more?"
"What terms?"
"Let me think about it."
 
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Shane Deubell

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Posts like these belittling everybody else but ones business decisions brings to mind a Japanese proverb: "The frog in his pond sneers at the ocean."

What works for you Shane, I have no doubt is the right decision for your business. I am quite sure that you have given it all due considerations. Dismissing other businesses' point of view as nonsense, doesn't make you right. It just makes you "froggish".

Should I go feed the horses Richard?

I didnt quote anybody.

It was an open ended opinion, remember this is a public forum.
Healthy to hear opposing views, its the only reason i come here actually.
 
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steve_64

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i like your response meg. very professional and honest.

a lot of good replies here.

to me its just about sales. how i would handle it would depend on my mood at that moment. i would like to think i would be as professional as meg and sometimes i am. but, i also know ive blown a lot of sales i shouldve landed due to my attitude at the moment.

confidence is what i see in megs reply and that tends to stick with people.
whatever your reply is do it with confidence and you will win more than you lose. JMO
 
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Desk Jockey

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only pet them if you have a hankering to do so.

You can walk the dog.

Curry comb the horses

You'll feel like brand new then com back and let Larry and Shane have it! :biggrin:
 

ruff

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Sorry, but no cigar.
Your advise, like the perfectly rhymed "pets some cats" has to stay true to form.
You can't lose that poetic touch that makes your style so....distinct.

For example:
You can walk the dogs
or, curry comb the frogs
Is O.K. I mean all right!

Please, hop out of your pond and try again"grass watcher", anything else would be uncivilized.
 
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