EGIA
Ask the Experts
Author: Thomas Christian | Digital Marketing Coordinator at EGIA & OPTIMUS | July 24th, 2024

When Will Customers Pay Higher Prices?

This week on ‘Ask the Experts,’ an HVAC Contractor in Michigan asked:

“When will customers pay higher prices? I can beat competitors in my area by two or three thousand dollars, why do customers still go to them?”

Contractor University faculty member Gary Elekes began by stating that while price is extremely important, there are other factors they weigh when deciding which company they’d like to go with.

“The customer is making a standard value judgement,” explained Elekes. “It’s a question of what’s being offered. And I think what you would find is that your competitors are probably doing a better job justifying why they are more trustworthy and why their value is a better match for customers.”

According to Elekes, this happens because other companies are successful at convincing customers of their superior value during the sales process. In order for a business to do the same, Elekes says there are four major categories in which a company can improve their sales process.

The categories Elekes listed are selling yourself (or the sales person) as a trustworthy brand representative, selling the company’s brand and reputation, the product or service as well as the warranties they come with, and the price of the actual system as well as what financing a customer can use as a payment solution.

Gary Elekes is serial entrepreneur with a passion for helping others become more successful by sharing what he has learned over the past 3 decades working closely with all facets of the contracting industry. During his career, Gary has held senior management positions at Lennox and Service Experts

Our faculty members have also answered questions on other topics related to system sales, including How to Overcome Competitors’ Lower Prices and What to Charge for Parts Under Warranty.

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.