In our last blog post we covered the 5 steps you must take in properly handling an objection.

Remeber the 5 steps?

Relate, Identify, Isolate, Handle and CLOSE

I will walk you through the process for what most would agree is the most common objection:

Price Too High

First off you must ask yourself, ‘Why am I getting this objection?’

You must view every objection as if there is a hole in your presentation or marketing strategy that needs revision or improvement.

Did you build enough value?

What does THIS homeowner value?

What did you show them to justify a premium price?

Is your price to high? What are they comparing my price to?

If you can’t answer to yourself the reason a homeowner should choose your service, how can they be expected to make a decision?

So now you have tightened up your pitch, asked the right questions and still got the same objection…………….

Time for the 5 steps:

RELATE- “John, I am the same way too I’m always looking for the best deals. I sometimes even buy something ONLY because it was a great bargain. (story to build rapport) I bought a three year supply of toothpaste from Costco last weekend and should see a return on that investment in about 6 months…”

IDENTIFY- “I have been in this industry long enough to know that there is always a reason someone’s price may be lower than mine, is price your only decision factor?”

ISOLATE-

• Yes- “My prices are extremely competitive, but let’s take a look at the bid to see where your money is going and ways we can agree on the amount of your investment”
• No- “Are you comfortable with myself/company/ service? (if no then handle those objections) Yes? “Great well if you are happy with everything else besides the price, let’s find an amount of work you’re comfortable with”

HANDLE-“John, the industry is very competitive right now, which means I wouldn’t still be in business if my prices and services weren’t competitive. You’ve told me you like everything about myself, my company and the work we wrote up in this bid. I can write three more bids with three different prices if you want to compare what you get for different prices.”

CLOSE-”Which package do you think is best for you?” “When are you looking to get this work started?”

The process in which you implement and follow this system will be just as beneficial as any words that are included. Having a plan for handling objects makes the sales process easy and painless for both the homeowner and your company. Don’t leave another house unless you’ve done everthing you can to earn their business; if you don’t, someone else will.

Generating leads is an artform in remodeling. There are plenty of ways to do it, from retaining past clients to advertising, and these days how you do it can make all the difference. In 2003, Remodeling Magazine conducted a reader panel asking all about leads. At that time, and likely even more so now, the majority of contractors relied on past clients and word of mouth for lead generation.

The concept is simple. Past clients are a familiar resource whom you’ve worked for in the past. Their repeat business or recommendation to a new client has a certain, predisposed measure of validity that is just not possible with strangers. Now, in 2003 when the original survey was taken, times were very different. The housing boom was coming into its own and contractors had more freedom to pick and choose projects.

Those times may have come and gone but the fundamentals of remodeling and lead generation remain, even though it may be contractors calling past clients to check in rather than the other way around. Yet despite the fact that homeowners are in the driver’s seat, you are still more likely to generate quality leads from past clients because both homeowners and contractors tend to trust the word of a friend or known client than a phone book or random ring of the phone.

Another interesting trend that came out of the 2003 survey and remains relevant today is the need for personal interaction. Most contractors surveyed stated that they put “gut reaction” and face-to-face conversation on a higher pedestal than any number on a lead sheet. The lead sheet may itself lead to the interview, but it would always be the interview that took precedent.

Again, now that the tables are turned and it is often the contractor doing the hunting, the same rules apply. Better leads come from past clients and should be prioritized. Homeowners running through the phone book or search engine are essentially window shopping. That is not to say that every lead isn’t important — there is a contractor for every job regardless of lead origin — but the odds are much better when familiarity is involved, not to mention contact onsite. (more…)