THIS is why you need to know your numbers and use that information to negotiate

[heyheyheynoname]

I Quoted the job at $6750…

It’s our Ideal job, so I definitely wanted to grab it. A 3 day exterior.

Bundled into the quote was $500 for pressure washing package (House, Pool Cage, Concrete Border, Pool Deck)

The value of these services to me is $375 - this is what I’m going to pay to have it done.

So, I called the guy (With Urgency in my voice) and said:

“Hi Mr. Homeowner, Listen, I know we just spoke yesterday and you said you wanted to wait - however, I just had something open up for the first week of February - I figured I’d reach out to see if I were to sweeten the deal a little, you'd allow me to earn your business so I can fill this slot in my schedule"

(I'm framing the response as if he's doing me a huge favor...so he knows that he has leverage here)

There was a brief pause, and then he said…”How sweet?”

At that point, I knew I had a deal, it was just a matter of where I needed to be to get the yes.

I always frame my response with an action statement...

“If you place a deposit today … “

This makes sure there is complete transparency in what I’m about to offer - I’m only offering it if he’s going to put down a deposit today.

So, I said, “If you place a deposit today, I'll take $250 off and do the entire job for $6500. How's that sound?”

He came back at me and said…”Sorry Tanner, that’s not sweet enough…”

haha. I can applaud his honesty here.

Now, most would’ve backed out here - and said..."Ok, I appreciate it..."

BUT...Because I know my numbers, I know that $6500 was priced at a 50.8% profit margin!

I have a little more room...Remember, I'm a broker - a buyer and seller of paint and labor...it's just a matter of how much I'm willing to sell it for.

Now I really lay on the heat…

“Ok, I’ll make it easy…I don’t know if I’m going to be able to look my wife in the face for this one…” he laughed.

“Again, if you place a deposit today...I'll give you my best deal of 2021...$6250…how's that sound?”

“DEAL!”

“I’m on the golf course right now, have Chris come over tomorrow at 3, we’ll give him the deposit…thanks Tanner, we’re excited to work with you!”

3 day job, $3k profit, 36.8% Labor, 13.6% Material, 48.8% profit margin.

Knowing your numbers gives you negotiation leverage.

When you confidently negotiate and can spend more time framing your responses instead of feeling fearful that you’re giving up to much, you will inevitably close more deals.

 

[soniyadjs]

@heyheyheynoname Why is Chris getting the deposit tomorrow instead of later today? Just nit picking. . There is a structure to your approach and you know your numbers. I appreciate that.

 

[heyheyheynoname]

@soniyadjs I called him in the evening around 5 yesterday and he was golfing. And he wanted to give us a check for it. I wasn’t going to peg him at hole 17 for the deposit haha

 

[rav054]

@heyheyheynoname GOLF CART FULL SPEED OFF THE BUNKER WHILE SCANNING CHECK IN CHASE MOBILE APP

 

[heyheyheynoname]

@rav054 Hahaha

 

[bmh3d]

@heyheyheynoname

“If you place a deposit today … “

I'm glad you got the job, but I can tell you that anybody who says anything to me that even resembles that, will not get any work from me, ever.

 

[makrina]

@bmh3d Yep. Kicked a roofing sales guy out for trying to use high pressure sales tactics.

 

[613jono]

@makrina OP wears a tweed jacket and has to keep a 500’ away from all schools.

 

[heyheyheynoname]

@makrina That’s not high pressure. It was over the phone

 

[andy1947]

@heyheyheynoname Sounds just like the car salesman I worked with recently. Your approach no doubt works. It just doesn’t make people feel warm and fuzzy about you.

 

[heyheyheynoname]

@andy1947 I can understand that...but when people tell me they're getting "more estimates" after we've built a relationship that doesn't make me feel "warm & fuzzy" either...at the end of the day this is a business agreement. Someone's got to push the needle forward, and in most cases, it won't be the client

 

[andy1947]

@heyheyheynoname Very true. Don’t kid yourself though. You have not built a relationship and that is ok. You definitely need to be the one to facilitate the sale. Just be careful. When selling cars, painting services, and such this approach will work fine. They only need you once very infrequently. If you have to resell a customer over and over they will not chose the guy who uses high pressure tactics. Also note that if you transition into professional sales this approach doesn’t work well either. I like your drive. Just make sure you clarify who the audience is when trying to teach people on an open forum.

 

[heyheyheynoname]

@andy1947 I can agree with this, I also sell SAAS and I don't do this approach there. It's a very slow process - we do demos, onboard, and nurture those relationships long term. You're right.

 

[leggomymeggo]

@heyheyheynoname I would drop the deposit on him after he commits to wanting the service. “John, since we came to an agreement on price and date, last thing I need from you is a deposit so I can place the order for your special mixed colors to match your siding”.

I wouldn’t phrase it that the sale depends on him placing a deposit. Make it sound like it’s standard with every job that needs special order products. He doesn’t know what is special order and what isn’t. Or his deposit makes sure that he will still get the same sale price even though his job is a month
Later. There’s tons of ways to twist it and not sound like a douchey sales rep

And I need time someone tells you that there are still making calls and getting prices tell them this “do me a favor and make me your last call after you’ve gotten other quotes....I will try my best to have the best price”. When actually it Doesn’t mean shit about lowering prices. It gives you the opportunity to get him back on the phone, tell you other quotes and what they entail. Gives you a million opportunities to sell your product again and why it’s better. Or just drop your pants and lower your prices

 

[613jono]

@leggomymeggo Great advice!

 

[indianhippygirl]

@heyheyheynoname I worked in tech sales selling into SMB, we were the opposite of Yelp (who is notorious for doing high pressure sales) and some people thought we were the devil for giving incentives to signup. (not because we're trying to scam them but because we know how hard it is to get an HVAC company owner on the phone and I'd rather give 5%-20% off than chase him for 2-6 weeks trying to check in.)

But yeah I'd love to know how to incentivize people in a way where people don't recoil. Some people don't care, some people even call you out on it jokingly, but yeah some people hate it.

 

[613jono]

@bmh3d same. I'm not saying it's not a legit strategy. It must work sometimes.

I'm just saying for me thats an absolute deal breaker. Like, the conversation is over for me at that point and I am just figuring out how to get off the call as soon as possible.

 

[heyheyheynoname]

@bmh3d On to the next

 

[bmh3d]

@heyheyheynoname

On to the next

That's fine too. Just wanted to mention that a lot of people don't respond well to being pressured into a sale.

 

[job3315]

@bmh3d Professional sales guy here, and I feel the same way.

In OPs defense, there are multiple lines he could have used that could have generated the same outcome of grabbing a deposit, and creating urgency.

What he could have done was separate the two - we always take a deposit when we book the job... if you book it now, I'll give you X amount off. OP also didn't know what the customer thought would be a little sweeter. Could he have done it for 6300? 6400? The customer didn't name the price and that could have helped him.