BLewis said:
Steve
PS I recently wrote a three part ICS series on "Dealing with the Value Client' which basically means how to negotiate with a price haggling, high end customer and still keep your dignity and your profit margin. Matt is installing MS Office 2010 on my computer so i can't access them. I'll try to post some of the high points tomorrow.
Just a reminder, I have a nice collection of your series however I searched and do not have this particular one. "Dealing with the Value Client"
And I promise to make it to SFS sometime this year if I can find an availability somewhat close to me. I'll even do enough $158 jobs that it will be the same as FREE!
Sorry, Billy, I haven't morphed that series into one of my much-abused-on-here free Special Reports. However, I cut and pasted part of it into a different thread and here it is again.
Also my geography isn't real good on Kentucky but my guess is Atlanta will be the closest to you- February 21-25. (Oh, and by the way, all ya gotta do is buy your juice from Jon-Don or 5K of anything else and you can attend SFS free.)
Steve Toburen
http://www.SFS.JonDon.com
Here is some of my "How to Haggle and Still Keep Your Dignity/Profit Margin Intact" copy:
Here is the good news- when a client asks you for a better (lower) price they in fact are saying, āYes! I want to buy from you! All we have to do now is negotiate a bit.ā (If your prospect doesnāt want to do business with you they will dump you and the conversation very quickly.) By following this seven step ānegotiating scriptā you will move your prospect from haggling to buying. So what DOES the customer want from you?
1. Empathize- Remember that āvalue shoppingā is a new concept for your clients too. So many people are tentative, even embarrassed, when asking you for a better deal. So immediately reach out to the customer with a ācommon groundā response, āI understand, Mrs. Jones. Weāre all trying to get the most ābang for the buckā today. (smile) So letās review the proposal ā¦ā At this point you are going to ā¦
2. Morph into a consultant- Your customer thought they were asking you to drop your prices. You on the other hand are going to ādeliberately misunderstand the clientā and start analyzing how to change the job specs to justify giving them a lower price. The philosophy you want to convey here is āmy prices are fixed but letās see how we can achieve āthe clean you need at a price you can affordā.ā (Heck, that isnāt a bad Selling Statement to remember!) You will start the process when you give the prospect the ā¦
3. āIllusion of Controlā- The home owner doesnāt want to be in full control of their carpet cleaning. (If they did, they would have been down at the local Ace Hardware store renting a Rug Doctor!) However, your prospective customer wants to feel in control, both in the job scope and the pricing. By you consulting with and then building an āaffordable jobā around what the customer shares with you they will feel validated and in control which will lead to them booking the job with you! The home owner receives this all-important Illusion of Control when you ā¦
4. Interview the client- So many times a carpet cleaner will emotionally ādraw a line in the sandā on the job price by adopting a defensive, even hostile posture when the customer just wants to feel ālistened toā and in control. Give your customer control by interviewing them using āValid Business Questionsā (VBQās) such as, āWhat areas are the biggest priorities for you?ā or āWhere do you have the most traffic?ā or āWhat (or where) are the worst spots and stains in your home?ā The longer you can keep the home owner actively involved in answering these VBQās the better because you want to ā¦
5. Benefit from the ROI principle- Basic business psychology tells us that the longer you keep the customer involved in the sales process using āVBQāsā the more likely it is that they will want a āreturn on their time investedā. And what is the ONLY WAY they can get a good return? Bingo! By having you do the job! (This ROI principle of selling is used extensively by car dealers and real estate agents.) After you have thoroughly interviewed the home owner (and in the process built a professional relationship) you must now ā¦
6. Present their alternatives- This āconsultant sellingā is based on the old sales concepts of you get to choose one of three flavors, āme, me or meā. In other words you take the information and priorities you received in the Cleaning Interview and massage it into three different price points that give the customer the best appearance possible for her budgeted amount while still giving you the profit percentage you need. After reviewing their options you must now ā¦
7. āAsk for the orderā- Due to the dreaded āfear of rejectionā we will keep talking in circles instead of āpopping the questionā! This is a far too common way of losing the sale. Remember that IF you have followed the six steps above and IF the customer has agreed with and/or given their input on every point they really have been giving a steady stream of yesās all along the way! So you have nothing to fear by using my Three Question Closing the Sale technique,
1. āSo of these three options, Mrs. Jones, which one best meets your needs? SHUT UP and wait for her response.
2. āGreat! Now are we working with any deadlines on getting this work done?ā SHUT UP and wait for her response. If the answer is āNo, any day worksā you have yourself a YES! On the other hand, if she says, āWell, Iād like it done before my party next Friday ā¦ā even better! But if her answer is sort of vague then just move to my third Closing Question ā¦
3. āIs there a day of the week that is better or worse for you?ā Once again, SHUT UP and wait for her response. If she replies, āTuesdays are really full around hereā you have yourself a YES! If she says, āNo any day works this weekā it is another YES!
NOTE: Iāve focused the Seven Steps above on the residential market. But this same Value Shopper system works great in the price conscious contract commercial and janitorial market too. In fact, I have a Commercial Carpet Analysis Form free for the downloading.
http://sfs.jondon.com/1972/resources/pa ... t-analysis