While you can’t stop ‘price objections, what you can do is emphasize the value a customer receives in a way you win the job. The objection says, “You’re just too high.” Or “You’re more expensive than my other two quotes. This objection can be expressed in various ways, but it is usually about price.
Why do customers object to paying more for painting services?
- It is sometimes just a statement and not an objection at all.
- They are trying to see if you will give them a better deal.
- Many customers believe that every contractor can always “give me” 5% – 10% off the initial estimated price.
- The customer might prefer your quality results and reputation over another contractor but lowering your contract price by 3% – 5% would make it easier to sell their spouse.
- The Customer can’t afford or doesn’t have enough money in their budget. The customer has a fixed budget and cannot pay anymore.
- You haven’t convinced them that paying a higher price is worth it.
Consider a few of the following responses you can use when a customer declares your price too high.
Customer: “You’re a lot higher than my other two quotes.”
Contractor: “I appreciate your honesty. We’ve been a quality contractor for many years and have several thousand happy customers who are very glad they paid more to recover a high-quality, long-lasting paint job. It is refreshing to hear this kind of honesty. You’re probably telling me that for a reason?”
Rule # 1 Never answer an unstated objection – ASK
Most of the time, this objection is not an objection at all. Please don’t jump to that conclusion until you know it’s an objection. Most of the time, the customer is trying to justify why they should pay more money to have you do their job. The customer is asking for help to explain the higher price.
“Let’s look at your quote and discuss the reason behind our proposed work.”
Customer: “Your bid is higher than the other three bids I received.”
Contractor: “Thank you for getting back to me. That shows me you are serious about getting a good quality contractor. Too many customers are not doing their due diligence to find the best contractor. Now, let’s look at where the other contractors are cheaper and determine what they leave out of your project.”
Your rebuttal to this objection needs to be well-scripted. Many estimated by the other contractors are way too flipped in their response. You don’t want to use canned phrases that your competition might use because you will sound like everyone else. Avoid the standard “Compared to what?” or “Well, how much higher are we?”
Let’s break down the language of this approach.
I provide three Acknowledgements in my response:
- “Thanks for getting back to me” This is a verbal reward statement.
- “You are serious” Again, another acknowledging statement to soften the hardest of buying veneers.
- “Too many are not doing their due diligence.”
Acknowledging statements softens and reduces any tension and reassures the customer that you’re a real professional. Then, let’s look at what other contractors are leaving out and determine what they are leaving out.
Many customers do not understand what goes into a quality paint job. They may think that all quotes are the same.
This differentiates your company, quality reputation, and approach to the customer experience, “Pain/ Gain Value Proposition, and The Value of Benefits. If you cannot accomplish this in the customer’s mind, you will struggle to win the projects when you price higher.
Customer: “If you can come down just another 3%-5%, I think we might have a deal.”
Contractor: “Wow, let me ask you a question; if there was a way to accommodate your request…, Would you hire us?
Here’s the thing… First thing first.
If they don’t or can’t answer “Yes” then don’t discount, or even offer to discount. You’re not playing games here. You are seeking a commitment.
The temptation to agree with the amateur painting sales/estimator, thinking, “Yeah, I’m getting a sale. But the thing is, sales are not profit.
Customer: If “Yes.”
Contractor: “Why would you give us the work if our price was equal to the other quote?”
Another very significant point to make in this last response is the question, “Why would you give us the work if our price was equal to the other quotes?”
Whenever you ask that kind of question, the customer must justify the previous statement. The other effect this has is getting the customer to sell themselves on why they want to work with you.
Whenever you can get the customer to conclude on their own, the effects on the sale are much more powerful than you are telling them.
Overcoming the cost objection is as old as the first painter who tried to sell his services at a profit. It will be a part of your everyday dealings and learning how to do it is job 1.
You must RAC (Relaxed Assertive Confidence) and be wise in transitioning the customer’s seeming obsession with cost and moving it to something more important, like long-term quality results, excellent customer service, and dealing with a reliable and trusted contractor. Now that’s valuable.
The customer doesn’t have the money – It’s not an objection. It is a condition that is out of your control. No matter how excellent your services are if they don’t have it and they’re unwilling to get it… it’s over and move on.
Here’s to overcoming the price objection!
Would you like sales coaching on how to overcome objections?
Email me at: Carl@contractorgrowthstrategy.info