If you are a custom installer who feels like our business is becoming commoditized, you are probably not alone. Mainly because of increased competition, its easy to get painted into a corner where price becomes the gating factor to a sale. Naturally, as more competitors rely on lowering their prices, you might think that there is no way out and then become tempted to follow suit. Well, Im here to tell you dont do it, because there is a way to stop discounting and actually make more sales.
Breaking the Spiral
When your clients say, Your price is too high, what are they really telling you? They probably mean Your value is too low. Once you realize that the inverse of price is value and begin to frame value as a measure, then you can break the spiraling price trap, close more sales, and leave your competitors in the dust. But its hard to achieve this goal without applying the principles of value-added selling.
The Power of Extras
Why would a client choose your job bid over your competitors? Well, if there is no difference between you and your competitor, the client will choose the lower priced bid every time. However, when you take the time to differentiate yourself, then the tables are turned. Because more competitors are relying on price as the differentiator, it can be easy for you to show potential clients that you bring more to the table that is worth paying for.
Here are a few examples of value-added selling that you can introduce during a sale:
1. Add value through longevity: Ive specified rock and outdoor loudspeaker models that have limited lifetime warranties, so you dont have to worry about system longevity.
2. Add value through confidence in your company: Here is the job bid that you requested and, for your reference, Ive enclosed a letter of recommendation from a satisfied client in the area.
3. Add value through extended service: Once weve installed your system, Ill be back to teach everyone in the family how to operate it, and Ill leave my personal cell phone number with you should you have any questions or concerns afterward.
4. Add value through courtesy: Although our installers are not surgeons, they will be wearing protective booties in the house so as not to scuff or mar your wood flooring.
5. Add value through competency: Our programmers are trained and certified so all of your keypads and remote controllers will operate intuitively and consistently.
While there are dozens more value-added techniques that you can apply, just answer this question and tell me if you still think discounting is the best way to make a sale. What client do you know who wouldnt pay more to have their speakers last a lifetime, have their system installed by a company that is highly regarded in the community, know that their sales person is engaged and willing to provide service even after the sale, feel confident that the installation crew will respect their home, and have the system operate easily and reliably every time it is used?
