Business Articles - Sales

Why do your customers tell you "your price is too high"?

Good question. Do you think for a minute that they really know one way or the other if your price is too high? Consider this. If your customers did in fact know that your price is or was too high on any given price quotation that you have given them, you and your company would not be necessary. They would do the work themselves.

"Your price is too high" is a tired old line that your customers have been trained to use to get you, the contractor, to lower the sales price of your work. They have been told by the media, their neighbors, someone at work, their family, whoever that if they tell you "your price is too high", you will, in all likelihood, change the quotation to some lower number. You will do this in hopes of getting their job. That is exactly what most "order takers" will do. The good salesperson knows better and doesn't lower their price, unless the customer changes the job.

"Your price is too high" (and that statement can come in a number of different forms) simply means that you have not done your job as a salesperson. Plain and simple, you have missed a very important step of the sale.

You have not pinned down the budget to the point that you know what they want and are willing to spend. To get a "Yes", you must get the four basic questions answered.

1. What do you want to do?
2. When do you want to do it?
3. Who will make the buying decision?
4. What does that person(s) want to spend?

If you get the answer to those four questions, you will get to "yes" much quicker. Sticking to and getting the answers to those four questions will help you determine if your customer is in fact qualified to buy from you. You will also eliminate most of the so-called "sales objections."

Knowing the answer to those questions will take your sales ratio from 1 in 5 to 1 in 3 very quickly. It will also give you the ability to raise your markup at least 10% to 15% and keep your sales ratio the same.

Learn the technique, ask the questions, get the answers and watch not only your sales increase, but your profits increase as well.

Michael Stone has more than three decades of experience in the building and remodeling industry. He can be reached by e-mail at michael@markupandprofit.com, by phone at 1-888-944-0044, or on the web at www.markupandprofit.com.