If you’re a residential flooring company and you feel like people are always telling you: “That’s too expensive,” then this article could give you the information you’ve been missing. But it might not be the answer you’re expecting.
Here’s why: Many contractors wish there was some type of magic phrase you could say to close the deal. But that’s not realistic. The truth is, there could be reasons why your prospects give you price objections. And many times, it starts from the very beginning of the marketing/sales process. So today, I’m going to break down some key activities you can do to avoid price objections. This will allow you to achieve what I call “the objectionless close.”
Position Yourself Uniquely
The first step is to position yourself uniquely. What’s considered unique? Well, the first thing you must consider is creating an offer in your marketing that isn’t price related. Too often, contractors advertise discounts and “reasonable prices” (whatever that means). Yet, this only attracts more of the type of people who shop based only on price. And so, it becomes nearly impossible to start charging more because of that. After all, these types of buyers make their decisions based on price.
However, not everyone buys only based on price. In fact, many people are willing to pay a lot more to get exactly the quality or service they want. Start making offers based on quality and reliability. For example, with many of our clients, we focus on creating extended warranty offers. This demonstrates in a measurable way you stand behind your work and put your money where your mouth is.
You also should start showing plenty of before and after pictures online. You attract the types of jobs you market to clients. After all, how can you expect to start landing “big jobs” if all your photos are smaller, cheap jobs?
Lastly, focus on gathering great reviews. This will give people more confidence to move forward with you, even if you’re a little more expensive. Showcase these reviews on your website, Google, social media, etc.
All these activities will help you avoid commoditizing yourself. People will see your company as different, and you’ll find people will be willing to pay more for you.
Use Quality Lead Sources
If you’ve ever compared a trusted referral to a cold lead, you know referrals are a better-quality lead in the end. That’s because the source of where your leads are coming from matters. Places like Facebook groups and Craigslist tend to attract lower quality leads. Why? Because those platforms have a super low barrier to entry. So, any contractor can respond to those inquiries and make their pitch.
With that in mind, it’s important you put in efforts to maximize the quality of your leads. As mentioned earlier, referrals are usually the highest quality lead you can get. So, be sure to maximize referrals by asking happy clients who else they know who wants to work with you. You also can use lawn signs and door hangers to let neighbors know you’re in the area.
But if you want to keep growing, you also must do outbound lead generation. It’s essential if you want to scale, and especially important if you’re a newer company. From my experience, one of the best places to do online lead generation is through Google.
This is because when people search through Google, they have what’s called “buyer intent.” They are searching for a solution.
For example, when someone searches for “best hardwood floor refinishing company” in your city, chances are they’re looking to hire someone to do the job. The best methods right now to achieve this are using Google Ads and Local SEO. A strong presence on Google will be worth its weight in gold for you, especially if you invest in it over time.
Qualify Your Leads
Before you ever drive out to someone’s house to do an estimate, you must qualify that lead on a quick phone call. The purpose of this call is to weed anyone out who’s not a good fit and set expectations going forward. I call this touchpoint a “discovery call.”
If you want to grow, you need to start being more selective about the types of jobs you take on and how you spend your time. Of course, this is only possible when you have the right marketing systems in place. And enough quality leads coming through.
What kind of questions should you ask during your discovery call? Well, some of the most important questions you should ask are as follows:
- “Where did you hear about us?” (Reveals lead source)
- “How many square feet is the job?” (Potential profit)
- “What’s your timeline like for the job?” (Scheduling)
- “What part of town are you in?” (Reveals potential income)
- “Have you ever worked with a professional contractor before? What was that experience like?” (Listen for red flags)
Finally, at the end of the call, you want to get an idea of their budget. Yes, I recommend you address the elephant in the room and tell them roughly what they’re looking at. Here’s what that should look like: “Well, Mrs. Smith, based on everything you’ve said, you’re looking at around $13,000 to $16,000. This depends on the type of materials we end up using. Is that something you could fit in your budget?”
And get an answer. If the budget works for them, great. Now you can move forward and start the process of giving them an exact quote. If it doesn’t fit into their budget, work backward from there. Educate them and see if you can find a solution that works. Then ask if that could fit in their budget. This will remove the sticker shock when you deliver the final quote, and it also will save you a lot of time in the end.
Go The Extra Mile
If you want to get more people to say yes to you, go the extra mile when it comes to your marketing/sales process.
What does that look like?
For starters, when you show up at their house to do measurements, leave behind a brochure. Show some testimonials and pictures of your work on there. Even just a business card and a branded pen can mean the difference in some cases. Wear a branded hat with a branded shirt. Bring a clipboard with you and take notes. Show up on time and keep your commitments. This will give them the impression you’re a professional, and they
can trust you with their money.
Then, when you finally do deliver the final quote to them, don’t just email over a PDF. Instead, ask for permission to go over the quote with them over the phone. This will allow you to answer any of their questions, address concerns, then ask if they’d like to move forward. You’d be shocked how many contractors never land a job because they emailed over a quote and got ghosted. Always schedule a phone call to deliver the final quote. Oh, and never forget to follow up.
I hope some of these simple adjustments help you overcome price objections. Sometimes when we get too focused on the weeds of our business, we forget to see how we can do things better. Often, the answer is not to look at everyone else and ask, “what are they doing?” Instead, ask yourself, “how can we do things differently?” I’m confident you’ll see great results when you do.
Matt Thibeau is CEO of Savant Marketing Agency and author of Digital Marketing Secrets
for Contractors. He can be reached at firstname.lastname@example.org or 613.619.5319. For additional marketing insights, visit contractormarketingbook.com to download a free
copy of “Digital Marketing Secrets for Contractors.”