Successful floor contractors are adept at turning leads into prospects, and prospects into closed deals and happy customers. One of the challenges for any contractor is overcoming price objections. This will become more important in 2023 as homeowners consider higher prices, rising interest rates and slowing investment growth. This will most likely lead to greater price sensitivity.
If you don’t compete on price, now is a good time to make sure your team is prepared to address price objections. Here are a few tips:
We aren’t more expensive – they are cheaper. This is a favorite when the homeowner is reviewing multiple estimates. Often you’ll hear “You are more expensive than XYZ company.” A good response is to point out you aren’t more expensive – they are cheaper. You priced the project using quality materials, an experienced team and (if you offer it) guaranteed satisfaction. If someone else is cheaper, there’s likely a reason – either they are leaving something out, or not providing the same quality and experience.
Highlight the Value. High-end contractors never compete on price — they compete on value. More importantly, they highlight value in ways that are important to the homeowner. That may mean accurate timeframes and adhering to schedules, or daily clean-up and project walk-throughs with the client. Identify where you provide value that is important to the customer and highlight those items. If you’re not sure what they value most – ask!
Financing and Flexible Payment Options. One sure-fire way to overcome price concerns is to remove cost from the decision process. Offering 6- or 12-months with no payments, or providing one-stop financing options can quickly reduce price concerns by giving the customer options. There are a number of companies that partner with contractors to allow flexible financing solutions.
These are just a few examples that may be helpful as you create your 2023 goals and develop marketing and sales programs. We wish you every success!