Too Quick Creates Too Little Value
Customers have a distorted sense of time and
value for our efforts.
When I teach clients my Sales Power! selling system, one of the biggest concerns the owners and their techs have is what to do when a client complains about a bill or a price by saying, “Well, your guy was only here five minutes!”
Customers have a distorted sense of time and value for our effort. And although they may be wrong, .they always remain the customer. This is a tough objection that’s bound to come up. This is especially so if you don’t know how to minimize the problem on the front end. The trick is to use a sales system that minimizes your need to play defense.
This type of price objection has been growing in number as more and more contractors in more trades are using a flat-rate pricing system.
But hey, you might be thinking, “We’re a T&M shop (time and material) so this doesn’t apply.”
Not so!
We ran as a T&M shop for years and customers would call and complain about the time on the invoice saying stuff like, “He went for parts and I shouldn’t be charged for that,” or, “He was smoking a cigarette and I shouldn’t be charged for that.” You get the picture. It was a tug of war over clock watching
That’s why I learned how to teach my own techs to first get customers comfortable with what flat-rate pricing is by using one of the most common explanations, “We charge by the job not by the hour.” Because the real goal is for everyone to focus on the task at hand and not on time alone.
I do admit that if your tech happens to be quick on the job or lucky enough to find and resolve the problem fast, the customer is going to feel cheated if they don’t see the value of what you’re doing. That’s why I teach techs a specific 5 Step Sales Process designed to build value the whole way. And one technique that has helped with time is for the tech to say before the work starts, “Whether it takes me five minutes or five hours, here’s all you’ll pay.”
This gets the conversation back to the true benefits to a customer when it comes to why flat-rate pricing is in their best interest and not just the company:
Give Me 60 Minutes And I'll Show You The Secrets To Running A Profitable
Al Levi is a consultant and a contributing editor to PM
magazine and blogs for many other BNP trade magazines. He is now presenting a free
online video event called the “60-Minute Recession Solution Online Video
Seminar”.
For the first time ever, you’ll hear from him and just a few of the many contractors who have engaged the power of his Power! Programs. They’re happy to share how this dynamic program worked for them and how it is still working for them - especially in these tough economic times.
“This program has helped dozens of business owners I’ve worked with one-on-one,” says Al. “The Power! Plans have also helped. But now, thanks to new technology, I’ll be able to help many more contractors with my 12-month Power! Plan Coaching Program than ever before.” This program will include the building of your own customizable Operating Power! manuals.
These programs have been working for Al in his family business for years and in his clients’ businesses. Now they are reaping the results. Click on the following link to see and hear for yourself: www.60MinuteRecessionSolution.com.
When I teach clients my Sales Power! selling system, one of the biggest concerns the owners and their techs have is what to do when a client complains about a bill or a price by saying, “Well, your guy was only here five minutes!”
Customers have a distorted sense of time and value for our effort. And although they may be wrong, .they always remain the customer. This is a tough objection that’s bound to come up. This is especially so if you don’t know how to minimize the problem on the front end. The trick is to use a sales system that minimizes your need to play defense.
This type of price objection has been growing in number as more and more contractors in more trades are using a flat-rate pricing system.
But hey, you might be thinking, “We’re a T&M shop (time and material) so this doesn’t apply.”
Not so!
We ran as a T&M shop for years and customers would call and complain about the time on the invoice saying stuff like, “He went for parts and I shouldn’t be charged for that,” or, “He was smoking a cigarette and I shouldn’t be charged for that.” You get the picture. It was a tug of war over clock watching
That’s why I learned how to teach my own techs to first get customers comfortable with what flat-rate pricing is by using one of the most common explanations, “We charge by the job not by the hour.” Because the real goal is for everyone to focus on the task at hand and not on time alone.
I do admit that if your tech happens to be quick on the job or lucky enough to find and resolve the problem fast, the customer is going to feel cheated if they don’t see the value of what you’re doing. That’s why I teach techs a specific 5 Step Sales Process designed to build value the whole way. And one technique that has helped with time is for the tech to say before the work starts, “Whether it takes me five minutes or five hours, here’s all you’ll pay.”
This gets the conversation back to the true benefits to a customer when it comes to why flat-rate pricing is in their best interest and not just the company:
- 1.
Fairness: Which means you pay the same price as your
neighbor would pay for the same work.
2. Protection: Which means this is all you’ll pay for the work you’ll be doing whether you take five minutes or five hours.
Give Me 60 Minutes And I'll Show You The Secrets To Running A Profitable
Service Business ... Even During A Recession!
Al Levi is a consultant and a contributing editor to PM
magazine and blogs for many other BNP trade magazines. He is now presenting a free
online video event called the “60-Minute Recession Solution Online Video
Seminar”.For the first time ever, you’ll hear from him and just a few of the many contractors who have engaged the power of his Power! Programs. They’re happy to share how this dynamic program worked for them and how it is still working for them - especially in these tough economic times.
“This program has helped dozens of business owners I’ve worked with one-on-one,” says Al. “The Power! Plans have also helped. But now, thanks to new technology, I’ll be able to help many more contractors with my 12-month Power! Plan Coaching Program than ever before.” This program will include the building of your own customizable Operating Power! manuals.
These programs have been working for Al in his family business for years and in his clients’ businesses. Now they are reaping the results. Click on the following link to see and hear for yourself: www.60MinuteRecessionSolution.com.
