How to Overcome Competitors’ Lower Prices
An HVAC Contractor in Nevada asked:
My competitors have lower prices than me. How do I overcome this on a sale?
EGIA faculty member James Leichter explained that many times, customers will only every go with the cheapest price, regardless of how well you demonstrate your own company’s value.
“The bottom line is, you’re being outsold,” said Leichter. “Your job is to make it sound like you are offering a much better deal, irregardless of the fact that it costs more money.”
To elaborate, Leichter began with an example he typically gives to his own technicians. “Isn’t it true that a drill for $400 can be a total rip-off?” he asked. “Yes, they say, that can be true.”
“But isn’t it also true that $400 for a drill could be a fantastic bargain? So what’s the difference?” said Leichter. “Well you didn’t tell me what kind of drill I was getting. As a sales person, you gotta tell them what kind of drill you’re offering.”
All the benefits and extras that come with the system and service quality that your company offers needs to be emphasized as much as the price point during a sales call. While Leichter concedes that his prices might be higher, his level of quality is also higher and matches the price that he charges.
However, if sales people don’t educate the customer on the kind of quality they are getting for their money, then they would have no way of knowing why your higher price is actually a better deal.
James Leichter has accomplished a lot over his decades in the home services industry, founding companies like Aptora and Mr. HVAC, as well as establishing himself as a renowned industry consultant and founding faculty member of EGIA Contractor University.
Our faculty members have also answered questions on other topics related to sales in the contracting world, including Priorities on Sales Calls and How to Use a Trial Close
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.
