We’ve all had it happen before, we are in front of a prospect who has completely unrealistic price expectations. What do you do? Check out the video below for a few tips on how to address this scenario.
A potential client wants a 20 product bid. They tell you that they expect the price to be under $10,000; you know it will be considerably more than that. Now what?
Don’t be in a hurry to write off someone with an unrealistic expectation on price. If they called you, doesn’t that mean they need or want your product? Take the time to gather information before you decide they aren’t worth your time and energy. See if you can turn it into a sale.
This can be accomplished with the proper set of questions and a little patience. Start by asking the four basic questions that are needed to get to the contract. At some point, the budget will come up. Ask the question, “How did you arrive at the budget you have set?” You will get all kinds of answers, but the usual sources are other contractors, something from the media, or a hopeful wild guess on the part of the owner.
Give them the three price ranges that their job will fall into. Not one lump sum figure, not two broad figures, but three well-defined ranges based on your experience. You want them to make a decision, and that is why the wording is so important. Start with the middle range, move to the top range and finally explain what they will get in the low budget range.
Will they have sticker shock? Most likely. Will they think you and your prices are nuts? In some cases, yes. Will you get through to them that their budget is unrealistic? Maybe.
Most of it depends on how you present the information. Good questions can lead them to the conclusion you need them to reach. Blanket statements are not as effective. Remember that you have two ears and one mouth and use them in that ratio.
When you have given the three price ranges, ask the question, “Which of these three budget ranges would you like to invest in your home?” Or, “Which of these three budget ranges do you think would work best for you and your family?” There are several ways of asking this question but after you ask it, STOP! One of the biggest mistakes salespeople make is that they ask a question, and then keep on talking. Put a zipper on your lip. Button it up. Let them give their answer.
If they come back with the nonsense that they don’t know what it will cost, tell them it will be in the ranges you just discussed. Give the ranges again if necessary. They don’t like making decisions, and are trying to avoid the fact that you provided that info already.
Give your clients good information, help them adjust their budget, and make the sale. If they won’t adjust, move to the next client with a realistic price expectation.
Remember, the best earn the sale!
Catalyst Consulting 