June 5th, 2019
Earn Premium Prices Every Time
We’ll start today’s article with a couple of rhetorical questions:
Do you want to get paid more for your window and door products?
And do you want to do this every time you close a deal?
Well, of course you do. As the effects of higher margins spill over into virtually every area of business, we all want to command premium prices.
As we continue down the road of discussing some foundational elements for making home improvement salespeople great again, let’s talk about a somewhat obscure thought process that’s guaranteed to consistently capture higher prices than that of your competitors.
What’s the secret?
- Building value?
- Better products?
- Better training?
All of those things are definite factors and things you’ll want to communicate to potential customers, but the one thing that a master salesperson thinks about above all includes: risk aversion.
The online, open-sourced encyclopedia service Wikipedia defines risk aversion as “… the behavior of humans [especially consumers I would argue …] who, when exposed to uncertainty, attempt to lower that uncertainty.”
Like it or not, many people equate doing business with a home improvement salesperson to be like doing business with a used car salesperson: high risk. At the same time, studies have shown that people are willing to pay more for a product or service if they perceive a lower risk.
So, you say, “Well that’s easy. I’m already doing stuff to communicate lower risk. I cultivate customer reviews, I get testimonials from customers and all of those things.”
And they’re all important, of course. But those things have more of an effect on opportunities, regarding whether or not your company gets into the home to begin with. A true sales professional understands that the real chance to communicate comes face to face.
The best sales folks that I’ve worked with over the years excel at overcoming risk aversion by telling great stories.
There are four main stories that a salesperson should master for these purposes:
No, I’m not talking about the four-page company story that we had to memorize before we could go out and sell. Based on how much research folks do, they already know how long you’ve been in business, etc. Think beyond that to things like company involvement in the community and specific things that might affect them personally, like noticing how well they keep their property and talking through how your company maintains a job in progress.
There are consistent scenarios that homeowners you’ve served in the past have dealt with. Make sure to arm yourself and your team with specific stories that they can use to relate to each potential customer. In the process, find and work with similarities between past customers and current prospects to make things relatable.
What are some of the things about you that you can weave in to raise trust? What are some of their worries about dealing with salespeople and how can you mitigate those fears?
Long after you’re gone, they have to deal with your product. How does your product alleviate any long-term concerns that they may have?
Being great at relating how doing business with you, your company and your product is less risky than doing business with your competitors’ leads to higher prices every time. Give it a try.
Next time we’ll discuss the idea that product quality doesn’t matter—at least not until you do this one thing …