What do you do when a Customer haggles with you about price?

[Sticky]

?

 

[dealtimeman]

dust my feet and move on.

 

[Steve Toburen]

?

Actually, I was sort of pleased when the customer tried to haggle. (Of course, I was even happier when they said, "That looks reasonable. When can you do it?") Classic sales literature tells you that "price objections" are just a Buying Signal. The "I'm just checking around" or "Let me check with my husband and I'll get back with you" customer is much more difficult to pin down.

With a serious and sincere request to lower the price on a residential job I would respond back, "No problem. Let's see if there is some part of the job that we can reduce or eliminate ..." With commercial it was much the same except that I was more inclined to negotiate on actual square footage, based of course on whether I could still make money given the production rate per hour on the job.

The most important thing is to not react emotionally and take the haggling personally. In some cultures this is entirely normal AND in this Great Recession it is becoming much more accepted in this country. (I've read numerous news articles recently on how a person should always ask for a discount, even in retail stores. So your customer may just be rezsponding to what they have been exposed to.)

You have already made the investment in getting this person to call you and possibly for you to meet with them. Why not explore how you can have a "meeting of the minds" instead of getting your feelings hurt?

Steve "Island Boy" Toburen
www.StrategiesForSuccess.com

PS To see how we handled price objections (and the "Let me check with my husband and I'll get back with you" customer) during the carpet cleaning pre-inspection just go here:

http://www.strategiesforsuccess.com/sec ... al-reports

and then click the link for "Carpet Cleaning Inspections that Sell!" No charge, no spam, no snake oil but you do need to fill out a simple, one-time-only registration form. The information is worth it.

 

[Al]

Below is a clip that should help
http://www.youtube.com/watch?v=3n3LL338aGA

8) 8)

 

[Chris A]

lately I've just been staring back at them until they submit...

 

[Dolly Llama]

The most important thing is to not react emotionally and take the haggling personally.

Why not explore how you can have a "meeting of the minds" instead of getting your feelings hurt?

couldn't agree more and have said similar over the years.

I've just never understood the indignation shown by many BD's when (not "if") it happens to them.
It's either yea or nay, and certainly no reason to get all huffy

Sticky, it depends on the job and/or prospect as far as what we do
(and how late my house payment is.. :mrgreen: )


On larger jobs or volume jobs, we have more room to move on price.
On small profit or PITA jobs, I'm less inclined to negotiate

While I'm glad that EVERY prospect doesn't have a "flea market mentality" , I'll gladly give away a recliner cleaning or bed rm traffic ln or a room of free scotchguard rather than be inflexible and lose a $300-$500 order....which just doesn't make $en$e to me





...L.T.A.

 

[handdi]

we have been doing just traffic areas for 10 less a sq ft
if they have a price problem been workin good

 

[Steve Toburen]

we have been doing just traffic areas for 10 less a sq ft
if they have a price problem been workin good

One "idear" (Alabama speak) that worked out well for us, Randy: Instead of using the term "traffic lanes" we would call them "open areas". The cleaning we did was the same but frankly since we cleaned all the visible, "open areas" anyway we felt like we should get the credit in the customer's mind.

Island Boy
http://www.StrategiesForSuccess.com

PS Of course, before you even need to worry about terminology in the quote you need to get out there and sell. For a neat form I used to help "structure" the sales call just go here:

http://www.strategiesforsuccess.com/sec ... /paperwork

and then click on the "Commercial Carpet Analysis" link.

 

[Walt]

We've received a couple of emails suggesting a price to us!

"We have 4 rooms and a set of stairs. Is there anyway you can do it for $140?"

To be honest, I was a little offended. But now I think I can see how to respond - "we probably couldn't get the price down that low. But if we only clean the open areas and you pre-vacuum before we get there, I bet we could get fairly close." Even if they don't bite we were able to respond in a positive way.

 

[sweendogg]

Exactly Walt, even if you don't end up with the job, you have attempted to leave a postive impression. They may not be able to afford your service at this point but they won't be black listing you as a service provider either.

Kinda of like the lady I had that called us off a coupon add in the paper for rug cleaning.. (wanted carpet cleaning instead). She had a little over 1000 sf and she wanted SG. The SS price would have been 279.00 we ended up being about 300.00. We offered 20% discount on the rug coupons for carpet cleaning.

She blew a gasket saying I don't need new carpet I just want it cleaned.. ( I kinda of though she was going to eat me.. very big lady and five little dogs all over the place.. yet surprisingly not an ounce of urine to be detected.)

Anyways I asked her what her price target was and she had already blown me off as she said well not $300.00. She didn't care about how wet it got, she didn't care that we took time to remove the soil and prevac.. (she had the robot vac). She just wanted the splash and dash for probably 19.95/room.

I didn't get upset. I apoligized that I was above her budget and offered some advice when she ends up choosing her service advisor. I didn't get the job but I tried to educated her about bait and switch. I didn't reciprocate her negative attitude towards me and though she could say we were expensive in her eyes. We were not rude or bad to deal with.

(I kinda of hope she got a very crummy 19.95 a room job that ruined her carpet and had a bunch of wickbacks. Though I left in a postive manner, she still made me mad.)

 

[Ken Snow]

$19.95 a room does not need to equate to splash and dash. The vast majority of cleaners (not the bb millionaires that have time to post all day), are cleaning at that or slightly higher as we do and I can't imagine any of them being called splash and dash by their tens of millions of repeat customers every year.

 

[renegade_cowboy]

I first find out what they were expecting to pay and what they wanted done. I go on to talk about how our prices are pretty average for the area and that I can guarantee that the job will be done right if they wanted us to do the cleaning. I also mention if they do go with a cheaper company, to ask important questions like:

Is there extra charges for fuel, pretreatment, fans, ect.

Do they use a TM unit and what sort of guarantee they offer.

If they have taken any certification classes.

Since really doing this full time I have lost 1 customer because of price and that was a guy that use to clean carpets. I did also have a customer not go with me because of price and called another company out Oxi Fresh. Prior to letting him go on the phone I told him if he had any questions or concerns after using the other company to give me a call and I could talk to him about it. He did call 5 days after using Oxi Fresh and said he had them back out because of the spots came back, they came back a second time. I talked to him about it and went out the next day to do the cleaning at the regular price we first talked about. Lesson learned for him.

 

[Brian R]

Most of what has been said I agree with thus far.

If a job is clean or big then it gives room for haggleability...and I let the customers know that.
Althought maybe "haggle" is the wrong word...I just like saying.

"For larger areas or cleaner areas we can bring the price down per area because it really just comes down to how much time and effort it takes for the overall job."

I really only bring up the "cleaner area" if they are pushing price (as long as I think they are wanting a fair price and not a give away).

The initial charge for any job is just showing up, unloading and loading back up...what's in between is usually the easy part...or less time consuming.

We DID do a 1 room deal last night for $65.00. Low price....but we were later than we expected, it was 1 room in an apartment around the corner from me and the guy didn't want to pay our minimum ($90.00). Not to mention, my tech was already there....so I gave in a little
Every situation is different and most times you can tell if someone is wanting a free ride or just a better deal.
I deal with evey customer a little differently but with the same idea and program in mind.

Customer Service (or sales) has a lot to do with knowing your customer as soon as possible.

 

[John Buxton]

Most of the time I say OK, and then make sure my production time is still within my area of comfort. But there have been times where it just hits me wrong and I have walked to the truck without saying another word leaving them where they stand.

A lawyer (surprise) did that to me recently, but his wife actually chased me down and set an appointment, that doesn't happen very often. To pay me back when I was done he had about 50 post it notes on every speck he could find. The carpet was trashed when I started. Oh well, There are times I'd rather go bankrupt than let someone piss on me.

 

[Farenheit251]

If it is slow, I'll inquire where they live and if it is not much travel I cave like a wet paper towel. There is a large percentage of the population just not going to pay top dollar. Maybe they rent,have old carpet or just don't have much money. Ain't too many rooms I can't wand out in 5 minutes with a slot glide.
It is not how I like to clean,but 4-5 jobs extra a week at $75-100 each makes a big difference in my income. Lots of weeks it is enough to go from just getting by to being able to have a nicer quality of life.

 

[klewis4]

As has been suggested already, I always try to offer an alternative service level that fits the customer's budget. Our price for all service levels is posted on our website and has been featured in some of our advertising. Since doing so, we rarely get customers who try to negotiate. If we cannot get them into an alternate service level and they still want a lower price, I apologize and tell them we just cannot meet their price. I have only had to turn down 2 jobs like this in the last year. Both were for customers we have done work for before. However, we did raise our prices about 10 to 15 % depending on the service this year. So, I don't blame them for wanting the old prices. BTW: The price increase coupled with posting our prices online has done a great job of "pre-qualifying" our clients. By the time they call us, price is not the main question they have.

 

[BRSUMMERVILLE]

Some times giving the lowest price possible and customer still want a 20 or 30 percent discount. I would asked the potential customer if they would take a 20 or 30 percent cut in their pay check. I would then get the price I quoted.

Bob Rock

 

[sweendogg]

$19.95 a room does not need to equate to splash and dash. The vast majority of cleaners (not the bb millionaires that have time to post all day), are cleaning at that or slightly higher as we do and I can't imagine any of them being called splash and dash by their tens of millions of repeat customers every year.

It does when the company that calls itself "$19.95/a room carpet cleaning". And is a bait and switch operator. :mrgreen:

Our prices are not hugly high but not hugely low. I only negotiate lower if we have cleaned the carpets in the last year or two. Or they have proof of having the carpets cleaned recently and by someone who does a descent job in our area. We are out to serve our customers from the retail side with the carpet cleaning. And our customrs who have been with us for year have never winced at the price. But I don't go after the customers who expect $19.95/rm.

What I find is when people really want a "deal" they have not invested any time in maintaining their carpet in the first place either vacuuming or even spot clean up. And they end up wanting it fixed for the best price. These are the carpets that need the quality prevaccing, preconditioner, power agitation, heavy flushing, post spotting, post grooming and drying to even begin to remove the years of neglect. You have to figure when you are performing all of those steps, you are covering the total sqft atleast 5 times. If not more if you are performing multiple wand strokes and agitation strokes.

So while yes I will bring my price down, I also believe its better to turn some customers away rather than struggle with the problems of potential call backs, and issues that may have result in attempting to be a Hero while earning zero!

 

[dgargan]

There is an alternative to the suggestions above also. The direction we take when asked for a lower price is to see if we can add more value to the job so we don't have to take a lower price. We would offer to do a extra traffic area in a room not being cleaned, or add scotch guard to the main walk way. On large jobs we would do a small chair free. This way the customer feels better about the price they are paying and the extra work we have to do takes very little time and we walk out with our price.

David

 

[Jim Morrison]

If the job is over 1000 sq ft of carpet I may start to reduce the price. A local contractor once told me " If people want a low price they will always find someone cheaper".

A guy that runs a gas station I fill up at was trying to chisel me once on a cleaning. My reply was "Do I ask you for a discount on my fuel?" Some cultures seem to do all business on a haggling basis.

 

[Brian R]

Most other cultures do that.

As I said before, you can tell when a person wants something for nothing or when they just are trying to get a better deal.
Sometimes when you give a better deal to someone, it will pay off when times are better for them.
That has happened to me before.

It all depends on that person and whether or not they are being realistic.

 

[Guest]

all you white people think your really worth something

takes a good brown skin to bring you back where you belong

always some white guy who will do it for a bargained down price so if it don't work with one just go down the line never fails

 

[Jim Morrison]

Dude,

tried asking you in the bird room, ya like the food at Jolly's in Kitsilano, if I'm in town sometime we could go out for supper on 10% off night.

 

[Guest]

http://www.vijs.ca/index_in.htm

 

[Jim Morrison]

just about went there to, I'm in.

 

[gary mackay]

refer them to a Turd World carpet cleaner just off the boat or someone indigeneous to the ghetto they are calling from, usually a brown skinned hack.

 

[Hoody]

Was at my last appointment today. Walked thru the house, tallied up the final total. 200 bucks, and then I hear, "Do you match competitors coupons, cuz I have one here 7 rooms for 119.00"

Well no ma'am we dont.

"Well then what can you do about getting that price down."

Well what price range is in your budget ma'am? - 150
Okay, what two rooms do you not want cleaned then ?

"No no I still want it all cleaned, but geeze 200 is a little high"

Well ma'am our price is our price, and we are more expensive for a reason, blah blah blah.

We get passed that she agrees on the 200.

As I am well into the cleaning she also asked about her couch(rayon) after I tested I get - "Do you think you could give that couch a quick go over with that machine(I had the V today).

So I explain about rayon and what the price is, and why it is that price and why I cant just "go over it quickly".

So I continue cleaning I hear her talking to her husband on the phone and he is headed home. Now the husband walks in.
I get the same question about the couch but only the skirts this time. Explain it would be better to clean the whole thing so no color difference, chance of a water spot blah blah.

I get done think I am in the clear. NOPE! "Can you run over these small rugs real quick" Poly rugs - SURE.

Love people like these. She used the "I dont clean very often, but looking for a company to stick with"

Bologna shes going to hit the ValPak up again and call the cheapest add she finds and try suckering all the free stuff. She had a VLM'r in previous to us that did what I did for 99 bucks. 6 rooms and a set of stairs.

 

[Steve Toburen]

There is an alternative to the suggestions above also. The direction we take when asked for a lower price is to see if we can add more value to the job so we don't have to take a lower price. We would offer to do a extra traffic area in a room not being cleaned, or add scotch guard to the main walk way. On large jobs we would do a small chair free. This way the customer feels better about the price they are paying and the extra work we have to do takes very little time and we walk out with our price.

David

I'm not sure everyone caught this but Dave's idea on "adding more perceived value to the job" is a good one to add to your arsenal of tricks IF you can get rid of your pride and ego. Think about it ...

"This way the customer feels better about the price they are paying and the extra work we have to do takes very little time and we walk out with our price." The way I'm reading it here is everyone wins.

Steve "Island Boy" Toburen
http://www.StrategiesForSuccess.com

PS At SFS we call the above process "giving your customer the Illusion of Control". Go ahead, let them FEEL like they got a "deal" as long as you "walk out with your price". Or don't. As mentioned earlier it all gets back to "supply and demand" as in is your bank "demanding" your mortgage payment that is due!

 

[Bjorn]

you mean adding more bull shit to the job description


"Illusion of Control"= more bull shit

you have to think is my price too high

 

[Brian R]

Stay at home house wives and little old ladies don't mind paying the price for the false sense of security they get.
They tried the national franchised only to get the ghetto techs splashing through the door.
They know that if they go with a low price small company that the will get the holy shirt batman! look at that portable...with no engrish.

Once they speak with me over the phone and find out I am a real person like the peeps they see every week at church, they are sold....

Then I send the ghetto tecks to their home...just kidding.