Jamesh921 said:
Years ago (back in 1989), I used that strategy. Back then, it was only $25.00 to cancell the appointment. I only had one lady cancel. Don't remember why she cancelled, but she sent me the check. I was surprised - and it really made me appreciate her integrity.
Wish I could find her now. I'd clean her carpet for free.
James, may I gently suggest there is a REASON you "can't find her now"? It is called your "$25.00 cancellation fee"! Sure, she paid you ... and then what? You "can't find her" because she quietly went elsewhere. (I would have too.)
Steve Toburen
http://www.SFS.JonDon.com
PS On the other hand it IS frustrating to have last minute cancellations and especially so when they rub your nose in it by trying to get you to match a low-ball price! Grrrr ...!
HOWEVER, remember that due to this recession dragging on it has become "fashionable" to price haggle a bit even if you are a wealthy consumer who is happy to spend the money for the best. So assuming you aren't booked weeks out you might want to not let these customers leave without fighting for them. (Or if you are too good to "negotiate" then kick them to the curb and Ken Snow will happily make money off of them!) Here are 7 steps I shared in a recent ICS article on how to "Win Over a Value Shopper":
"Here is the good news- when a client asks you for a better (lower) price they in fact are saying, “Yes! I want to buy from you! All we have to do now is negotiate a bit.” (If your prospect doesn’t want to do business with you they will dump you and the conversation very quickly.) By following this seven step “negotiating script” you will move your prospect from haggling to buying. So what DOES the customer want from you?
1. Empathize- Remember that “value shopping” 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 “common ground” response, “I understand, Mrs. Jones. We’re all trying to get the most ‘bang for the buck’ today. (smile) So let’s review the proposal …” At this point you are going to …
2. Morph into a consultant- Your customer thought they were asking you to drop your prices. You on the other hand are going to “deliberately misunderstand the client” and start analyzing how to change the job specs to justify giving them a lower price. The philosophy you want to convey here is “my prices are fixed but let’s see how we can achieve ‘the clean you need at a price you can afford’.” (Heck, that isn’t a bad Selling Statement to remember!) You will start the process when you give the prospect the …
3. “Illusion of Control”- The home owner doesn’t 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 “affordable job” 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 …
4. Interview the client- So many times a carpet cleaner will emotionally “draw a line in the sand” on the job price by adopting a defensive, even hostile posture when the customer just wants to feel “listened to” and in control. Give your customer control by interviewing them using “Valid Business Questions” (VBQ’s) such as, “What areas are the biggest priorities for you?” or “Where do you have the most traffic?” or “What (or where) are the worst spots and stains in your home?” The longer you can keep the home owner actively involved in answering these VBQ’s the better because you want to …
5. Benefit from the ROI principle- Basic business psychology tells us that the longer you keep the customer involved in the sales process using “VBQ’s” the more likely it is that they will want a “return on their time invested”. 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 …
6. Present their alternatives- This “consultant selling” is based on the old sales concepts of you get to choose one of three flavors, “me, me or me”. 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 …
7. “Ask for the order”- Due to the dreaded “fear of rejection” we will keep talking in circles instead of “popping the question”! 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 yes’s all along the way! So you have nothing to fear by using my Three Question Closing the Sale technique,
1. “So of these three options, Mrs. Jones, which one best meets your needs? SHUT UP and wait for her response.
2. “Great! Now are we working with any deadlines on getting this work done?” SHUT UP and wait for her response. If the answer is “No, any day works” you have yourself a YES! On the other hand, if she says, “Well, I’d like it done before my party next Friday …” even better! But if her answer is sort of vague then just move to my third Closing Question …
3. “Is there a day of the week that is better or worse for you?” Once again, SHUT UP and wait for her response. If she replies, “Tuesdays are really full around here” you have yourself a YES! If she says, “No any day works this week” it is another YES!
NOTE: I’ve 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 and of course it is free:
http://sfs.jondon.com/1972/resources/pa ... t-analysis
(You just knew there just had to be a promotional link hidden away somewhere, didn't you?)
