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The best solution to the “What’s your price” question
by John Bogdanski
Go ahead… lower your price. And when you lowered the price, the caller will ask for a still lower one. Sound familiar? Reduce your price, reduce your margins and work harder for less money.
Next time try this….
"What’s it going to take to earn your business?” The prospect's response will be. "I don’t know, the lowest price I guess?”
Now it’s your turn;
- “Would making your heating system more efficient so it saves you money (like at least 10% of your fuel bill) over the entire year be of any interest to you?”
- “How about feeling comfortable that the technician that comes to work on your heating system when it fails is a state approved certified technician that can get your system running fast so your pipes don’t freeze and burst ruining your carpets, your furniture and your walls?”
- [Depending on your business you can add one more question that’s based on your businesses uniqueness here.]
We do all of that and more and our prices for oil are only $X.XX . So for only pennies a gallon more than the (discounter/other full service/ you can add who you’d like) you’re a lot safer. Fact is if you add up those pennies over the heating season you’re spending maybe another $5.00 a month on heating oil and not having to do all that worrying.
Most people spend that much or more buying coffee for the month.
If all you talk about with customers is price, there is no price that is going to be low enough.
Price is important, but there are considerations that must come first. Learn to start the conversation by talking about value. If the prospect still did not value that value, be happy to let our competitor have the honor of serving him.
Here’s one for the schools, churches or commercial accounts…
The conversation goes like this;
Is that the best price you can do? I can get it cheaper from [insert competition]
First, gave the caller another company that’s cheaper.
Second, ask this question, "Do you regard this engagement as an expense or as an investment?"
The caller will pause and say they were thinking about it as an expense. That honest response will give you a chance to talk about the benefits of thinking about our services as an investment.
From a business point of view, they are looking at cost of fuel ONLY. It’s your job to educate them about what would happen if the fuel isn’t delivered on time and their production goes down. Or they have to close their doors because it’s to cold in their building.
They might also be interested in guaranteed prices so they know what their costs are all season instead of quoting a job and having their fuel expenses go up and eat up their profit.
If you’re including an additive that keeps their system cleaner so it breaks down less often. What will that mean to their business?
Do you see where I’m going with this?
Successful companies know how they create value for customers and know how to change the discussion to value. The best companies know they have to display a little confidence about the value they offer in order to send an important signal to potential buyers. That signal is: We are confident in the value we provide and, therefore, the prices we charge.
Feel confident about what your company offers and why it functions better on behalf of its customers. If your company doesn’t feel confident, how can you expect your people to price with confidence? If you don't have the confidence, give up discounting for a while and talk to me. I can help.
We have a system that helps you find what’s unique in your business. It also includes a process that will show you exactly why your best customers continue to buy from you.
If you’d like more details please contact me at 800-734-0976 or john @ oilheatmarketing.com
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