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Price Objection/ USP question

Discussion in 'Marketing / Business / Advertising / Websites' started by Decker, Apr 7, 2012.

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    So, twice today I had customers act like I was crazy or a thief for having a minimum charge ($125) or charging what I think is a fair price for quality cleaning (.25/sq ft carpet base price, plus for heavily soiled). I understand my price-point isn't for everyone and will face rejections with it... and that is ok.

    But...

    When they ask why am I so expensive, or what sets me apart, all I can do is explain my process. (Certified owner operator on site, Pre-vac, pre-treat with Green Seal Certified Pre-spray, HWE w/ truckmount, Acid rinse to neutralize pH and remove soil attracting residue, Post groom, blah blah blah) ... I don't think that is appropriate, or what they are looking for... they want to see the value in my price, not a list of what I will do. I'm trying to develop a better response without being negative about another cleaner.

    How do you guys respond to price objections or explain what sets you apart?
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    This is a really good question/topic, Decker. And our SFS members are seeing more and more obviously affluent home owners asking them to "sharpen their pencil". Why? Because thanks to the recent "Great Recession" it has become fashionable to "haggle". Here is Point #1 from my Seven Points on How to Win Over a "Price Shopper"

    1. Don’t take it personally- Remember that customers who want to “negotiate” (yes, even your long time clients.) are NOT putting down your cleaning abilities/worth/ethics as a person. Instead, they are likely subliminally responding to the relentless drumbeat of economic bad news. OR they too actually may have been adversely affected by the recession. (It happens!)

    Either way, all sales experts will tell you that any price objection is just a buying signal. (What you don’t want is the customer “fading away” from you with the old, “Well, let me check with my husband and I’ll get back to you” smoke-screen
    objection.) I actually welcomed reasonable price questions and even objections.

    Steve Toburen
    www.SFS.JonDon.com

    PS For my simple seven step "negotiating script" just download this free SFS "Winning Over the Value Shopper" Special Report
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    That's why I loved sfs!!!!

    Kicks this stuff right in the butt!


    In short, just stuck to your guns man.
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    just throw the statement back at them as a question and make them answer it.

    if they say "your price is too high" say....... "my price is too high?"

    if they say "you are a crazy thief " say... "I'm a crazy thief?"

    then shut your pie-hole and see what they say, this will reveal the real reason for their statement.

    Eg: your price is too high..... my price is too high??.......... "yes my neighbour had her carpets cleaned by a guy who did 3 rooms for 99$". once you have the reason behind their objection you can deal with it.

    if she said............ "yes your price is too high, i only have 80$ left from my alimony check and only wanted to spend that amount" so what she is really saying is your price is not too high for what you are offering to do...... but too high for her available budget
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    The real question is "Can you survive and make money with a 125 min. charge?" if you can and are then stick to it.
    In my case I only have two small bedrooms with carpet so if I needed a carpet cleaner it would not be you with that minimum charge.
    My minimum charge is 60.00 so I can service people with one or two rooms, this usually leads to other things because if they only have one or two rooms of carpet I can sell them on the idea of cleaning their tile or furniture, they might not have them done at that time but down the road they might.
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    With houses in my area usually running over 2000 sq ft, usually in the 3000 sq ft plus range, and carpet almost everywhere, even in bathrooms, I find a lot of work above $125. It's rare that I get a call for an apartment or smaller house. With drive time, set up, vac, clean, break down, and drive time... my economics don't support a lower minimum (although I did go to $99 over the winter).

    Part of THAT equation is that I need to be way faster, but 2 rooms would take me about an hour from arrival to departure. My numbers just don't support small jobs like that.
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    With one of the customers, he said "I've never paid so much for carpet cleaning in my life." I wanted to say, well that is why you have sticky carpet with black trails in your traffic areas after only 5 year old carpet. But what I did say is that I would use a quality pre-spray that would separate the soils from the carpet and a proper rinse agent that would remove any soil attracting residue. I explained that not all companies use a rinse agent.

    His response was "so rinsing the carpet is extra?" ... sometimes you can't win I guess.

    Like my wife said, and like Steve seams to be saying... they are sold on me doing the service, just not sold on the price.

    I can sell them the job, but I'm having trouble selling them on the price. I know my price is comparable (or lower) than a lot of locals. And it's not every customer, just the occasional.
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    Like Butch and Sundance man, gonna go down in a blaze of glory before I work for cheap and slowly go broke.

    I saw in the lunch thread that USP came up in conversation. The more I think about it, the more I think it's nearly impossible to have something UNIQUE as far as a carpet cleaner (without gimmicks). Spray the soap - rinse it out. But there CAN be differences between companies, in my case I strive for attention to detail, high quality, and trust.

    Does anyone have a UNIQUE business concept when it come to carpet cleaning? I'd like to hear about it.

    How are you guys conveying the fact that you are a better choice than the next guy?
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    my min is $70(2 rooms) I have a lot of little homes in my area, but usually can upsell a third room or hallway or stairs. I also tell them I only schedule one job a day, so I can stay as long as it takes to get the job done to their satisfaction.
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    While we usually use this comparison more for commercial carpet it can also work for residential. With normal traffic a carpet needs to be cleaned on an annual basis. If for 5 years you do not clean or have substandard cleaning you may have to replace your carpet. If you clean on an annual schedule your carpet (nylon) should easily last 10 years. The cost of maintenance is definitely cheaper than replacing the carpet (including pad and installation.) Plus you carpet always looks better and you are helping to keep a healthier environment.

    Too often our customers believe they should clean their carpet when they have traffic lanes or nasty spots. We need to educate them that this is an ongoing maintenance not a restorative cleaning.
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    I'm not an expert like most guys in here but I have been learning and this has worked for me wonders

    don't explain your process but the benefits of your process there is a difference. read Steve's reports it's the best reports you'll ever read in this topic. When you talk to clients although we feel like punching them on the nose just sound friendly and smiley.
    Offer a stronger guarantee money back always work (for ethical minded pros) why? it removes the fear of your prospects to make biz with you.

    I disagree with Henry only because those answers make u sound sarcastic disrespectful and your attitude will guarantee that you go back to the shop with empty hands from that job and with an enemy that can run to the computer and start witting sh@3$$ about you.

    Earlier you said you wanted to say this:
    "I wanted to say, well that is why you have sticky carpet with black trails in your traffic areas after only 5 year old carpet."

    DO IT that is exactly what they want to hear and need to know THAT SETS U APART FROM THE BUNCH" but do it the proper way be like i said smiley respectful and informative. close it up with a reminder of your unique guarantee and remember "If you are ever less than delighted with any work we do we make it right! Or you don’t pay a Penny that’s the only way we’ll make business with you".

    my guarantee for now is 100% money back plus $50 towards the bill of any competitor that comes and cleans whatever I could not clean. It's been running for about 1 year no one refund so far. my minimum is $100 $0.30 to $0.35 Sq Ft which ever is greater no furniture moved and rooms measured wall to wall and believe me people in the working class have paid for it with a smile in their face.
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    your right, it's not easy, but I think it can be done.

    I'm still working on one.

    I'm really steering in a very intimate "family and friend" relationship between us and the customer, making it deeper and longer lasting than just a business transaction.

    But like I said I'm really working on it, won't happen over night...
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    I'm with dm on the minimum price thing, $125 is going to cut out a lot of business. My minumum is 80 and i do a lot of work at that price (tends to be profitable too) I guess it sort of depends on how far away the job is too, I am much more likely to do 2 rooms for 80 or 69.00 (just remembered I ran that special) 5 miles away from my shop than I am 30 miles away.
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    We have a $99.00 min. charge and we have people around here balk at that !! There is a cleaner here in town that charges more than .52 a square foot. I think his min. charge is like $165 but rarely cleans for that. Needless to say we get many customers from him complaining about his price, and when we get in their home we up sell quite a bit and turn it in to a decent job. He does good work and brags about being the best cleaner on the planet and when people call his service the lady that answers the phone tells people that they are the most costly in town as if to scare away 90% of the people calling them. Price shoppers are not our enemy !! I have turned some of this guys customers into life time customers. We do 2 areas for $99 and always come away from most jobs at an average sell of $ 185 "Bait & switch: ? No !! I think not, just excellent communication skills and still creating life time customers that will never call that guy again because of his sticker shock. I get calls every day from people calling this guy and every day we put them on our schedule. Will we get .52 a square to clean for them? probably not but we still average around $150 to $175 and hour to clean these people he is turning away. Every customer gets a bang up job as well. When we up sell it is for extra work like furniture, tile,treatment etc. We don't bait & switch as to say it will cost them extra for pre-spray or final rinse or pre-treating stains or moving furniture ....this is always included in our price. Getting in someones home is valuable and once we are in it is all over they are ours for life.
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    Ya know we have around 50k population in our little city and about 150k total population pull from about a 45 mile radius from smaller burgs., and over 30 advertised carpet cleaners and lord knows how many more who don't advertise. So how valuable do you think a customer is around here? We really don't have any "Bait & switch" carpet cleaners around here. As to say the $7.95 a room people. For the most part every carpet cleaner around here has a similar price. There are a few low end coupon price people like 2 rooms for $60 bucks and $75 bucks for 2 areas etc. etc. but for the most part people want a price over the phone and will keep calling until they get one. What are they looking for and what will they pay? Will they wait for you to give them an estimate in person? Go through your 20 min. sales pitch explaining why you are the best.? and why your price is more than Jim Bob who does pretty much the same for less? He has the same equipment close to the same system of cleaning etc. etc. etc. And we have the .52 a square foot guy who brags about being the best in the world and dogs all the rest of the cleaners in town calling us "Bait & switch" cleaners lol, none of my customers would call me that !! But this guy calls all of us that in his scare tactics advertising. I honestly do not think we have a "bait & switch" cleaner in this town. At least anyone who has been around for awhile. He does get work and he does charge the living you know what out of people !! Does he do anything other than lie to his customers? The work is good but not better than my work and probably several others in our town. He couldn't possibly have better equipment than I or a few others. More steps? No!! At the end of the day we work harder and do more customers per day and make a good living and make more friends and more customers for life. I would love to keep this thread going because I think in the long run I will still be standing with thousands of happy customers that have found out the hard way that I'm just as good as he maybe even better and my price is half of what he charges. what do you think? I'm not saying I wouldn't like to get .52 a square foot but, lets get real just how many people are out there that will pay this. Well with that being said I can tell you how may didn't pay him that. We religiously keep track of our customers and how we got them and from whom or whatever! From March of 2006 until this past Friday I can say 100% for sure that 36 people that were on his schedule canceled their appointment with him by just asking around about someone who could clean cheaper than him and people telling them to call us. Another 68 people scheduling with us after directly talking to him or the lady who scared them away by telling them that an estimate was required before scheduling and also warning them that they were the most costly cleaner. 14 more people after having an estimate from him. And 109 people after we were already in their home cleaning that have used him in the past or had been given a price by his company. He does do good work and obviously must do great at retaining them during his estimate because only 14 have scheduled with us from that. But how many more of his customers have gone to the other 29 or so cleaners in town? I would have to say that probably not many have because only a handful like say maybe 4 or 5 of us can clean worth a dam anyway lol The only thing I can think of is it is a numbers game and he is throwing up as much dung on the wall as he can and hoping some of that dung sticks !!
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    What is USP? I figure the U stands for unique.
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    My minimum is 100.

    I just got tired of people jerking ya around on nickel and dimes.
    It cuts a good deal of crazy people out. And then focus on people worth while..
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    Unique Selling Proposition-What makes you better or different from the others...
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    Good discussion guys, and good insights on minimum charges. That has me rethinking my minimum, but I'm sure I'll stick to it for a while.

    Torrey, you nailed it. I've had a few flyers out for 3 rooms for $99 (up to 300 sq ft per room) and I got customers who would try to bargain for a better price. I was working at a loss, or for pennies per hour, and they wanted to squeeze those pennies from me. Decided to raise my bar a bit, comparable to other respected cleaners in town, and lose some of the lower price jobs.

    So far though... I've not seen a real answer, from a cleaner, to the question... How do you respond to the question "What sets you apart from other guys"? This has got to be one of the tougher questions when defining who you/we are as a business.
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    it works breaking the ice between client / tech makes it easier to communicate and creates a stronger trust and confidence. that is exactly what i'm learning

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