How to Compete with Lower Prices
This week on ‘Ask the Experts,’ an HVAC Contractor in Idaho asked:
“I need to know how to compete with lower prices listed on the internet for different parts vs. our cost.”
“I think most people have common sense and they will raise issues and try to compare a number on the internet and compare it to what you do as a full service company,” began Contractor University faculty member Weldon Long. “Deep down, there’s a part of them that knows there’s a difference.”
Long explained that the best way to deal with that sort of situation is to make sure that a customer understands that there is a difference between buying a part off of the internet themselves and using the correct part for their house, prescribed to them by a professional comfort advisor and installed by a professional installer.
Long also explained that often times, homeowners will have a certain price in mind that they’ve seen on the internet, but at the back of their mind they still might understand the reality that that price they saw is unrealistic.
Elaborating further, Long explained that it would be possible for a homeowner to buy every single part for their new system separately and that the end price would likely be cheaper than if they went with his company. However, that homeowner would still not be able to actually make use of those parts unless they were a professional installer themselves, and so they need to compensate a company both for the parts and the installation service.
Weldon Long is a successful entrepreneur, powerful speaker, sales expert and author of the NY Times Bestseller, The Power of Consistency – Prosperity Mindset Training for Sales and Business Professionals.
Our faculty members have also answered questions on other topics related to system sales, including When Will Customers Pay Higher Prices? and When Should You Prioritize Price Increases.
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.
