How to Still Close a Sale When You Charge Twice as Much
This week on ‘Ask the Experts,’ an HVAC Contractor in New Hampshire asked:
“We are a high-quality company that sells on our value, but we are having trouble with one objection in particular. When I’m at $20k and my competition is at $10k, I need to know how to still close a sale when they can pay for two installations from my competition.”
Contractor University member Weldon Long explained that this will be a challenge high-quality companies will always face, simply because there will always be someone out there looking to do things as cheaply as possible.
“In my experience, I’ll just say something like, ‘there’s cheap, and there’s suspiciously cheap. Do you think this is suspiciously cheap, given the fact that he is half the price of any reputable company in town?'” explained Long. He went on to say that he would almost rather deal with a price objection where the other price is ridiculously lower than his own, rather than just underneath, because of how obviously cheap the service would be.
Long then transitioned to the second point raised by the question, which was that the homeowner could literally get two replacements if needed for cheap instead of one replaccement with a quality company. “Why would you?” asked Long. “It’s not going to cost you any more to do it with my company and have it done right, so why would you go through the brain damage of having it done a second time?”
Long continued on to explain that if you’re in business as a quality-first company, there are likely many different aspects of your service that set you a part from your competition in a very real way.
Our faculty members have also answered questions on other related topics, including When Will Customers Pay Higher Prices? and How to Sell to Cheap Customers.
Hear more from our “Ask The Experts” faculty members on “Cracking The Code,” our weekly web series.
Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.
