woodman

  • Posts: 1069
You Are Too Expensive!
« on: September 01, 2004, 06:39:44 pm »
How do you respond when faced with this form of resistance to your price.

A common enough question I would of thought but how do you deal with it.

Do you immediately reduce the price

Throw your toys out the pram and walk out

or have a more subtle approach that swings it for you

Or are you lucky enough that no one ever asks the question, (if so do your prices need reviewing)

How would/do you answer the client?

John_McGavin

  • Posts: 112
Re: You Are Too Expensive!
« Reply #1 on: September 01, 2004, 07:27:05 pm »
Been told my prices are too high on several occassions whilst others think I am very reasonable.

My reply to the ones that say i am too expensive : im professionally trained, I use professional equipment and I am fully insured. All said with a smile on my face so the customer doesnt think you are having a go at them. Be friendly and professional at all times and maybe just maybe they will pay your price.

Some people just want the job done as cheap as possible, whilst others want the quality and guarantees professionals provide. Just one of these things I suppose??

Stick to your guns and dont lower the price unless youre desperate for the work.

John
John, Falkirk, Scotland

Mike Halliday

  • Posts: 11581
Re: You Are Too Expensive!
« Reply #2 on: September 01, 2004, 07:56:06 pm »
If only life was so easy as the customer admitting that they can't afford your price which is what they usually mean when they say your too expensive.

most say "thats fine we'll have a talk about it and get back to you" or just "we'll give you a ring"

i just accept they can't afford me and move onto the next qoute :)

Mike
Mike Halliday.  www.henryhalliday.co.uk

John_Flynn

  • Posts: 1108
Re: You Are Too Expensive!
« Reply #3 on: September 01, 2004, 08:00:51 pm »
Like John Mc, I stick to my price and tell them if they want Quality cleaning that is the price they will have to pay, I then add if everybody bought cheap there would be no BMW's or Mercedes on the roads, smile and walk away.

Had one only this afternoon on the phone, " I have been quoted £52.00 for a 3 seater and 2 seater settee and a lounge carpet cleaning can you beat that price?"

I replied  are they having a Double Double half price sale, she replied does that mean NO? I said " You got it in One".
I get better looking each day!!

paulchambers

  • Posts: 530
Re: You Are Too Expensive!
« Reply #4 on: September 01, 2004, 08:21:33 pm »
Value by John Ruskin 1819 – 1900
It’s unwise to pay too much, but it’s unwise to pay to little.
When you pay too much you only lose a little money, that is all.
When you pay too little, you sometimes lose everything, because
The thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot: it
Can’t be done.
If you deal with the lowest bidder, its well to add something for the risk you run.
And if you do that, you will have enough to pay for something better!
Or as the proverb says
A person who buys an expensive product and spends a lot of money, cries only once,
but a person who buys a cheap product and spends a little money cries often!


Musicman

  • Posts: 249
Re: You Are Too Expensive!
« Reply #5 on: September 01, 2004, 10:59:56 pm »
From a salespersons angle there is a structured alternative that may convert some price objections (it has to be seen as an objection rather than rejection) - and could make you even more money in the process.

I have to assume that a competitor has quoted and therefore there is a 'benchmark' figure that they are comparing your price against.

Most people will jump in to justify their price but this bull-dozes the objection rather than deals with it.

When they raise the objection (and in most commercial transactions there is usually an objection of some sort) simply ask them "If my price was the same as the competition/other quotes who would you give the business to?"

If they would give it to somebody else you need to ask why and deal with their comments accordingly.

Assuming that they say that they would give the business to you, you start asking for the reasons why (this should have been covered at the initial discussion stage for example: professionally trained, professional equipment, fully insured). Let them justify your prices for you. When they have given their reasons explain that these things come at a price and that is why you are more expensive.

Most people love a bargain so be prepared to be a little flexible in your price - but make sure that you get something back in return (additional rooms, upholstery, curtains, phone numbers of family/friends who may be looking for a clean etc). Alternatively stick to your price but offer discount on stainguard.

The whole process has to be 'win-win' and leaving the customer with a good feeling goes a long way to getting repeat business in the future.

I hope this helps.
Success is where hard work meets opportunity!

Shaun_Ashmore

  • Posts: 11381
Re: You Are Too Expensive!
« Reply #6 on: September 02, 2004, 12:31:08 am »
that was so beautifully put Musicman, like music to my ears pun intended!

I think the key word is communication.

Shaun

The Great One

  • Posts: 11832
Re: You Are Too Expensive!
« Reply #7 on: September 02, 2004, 12:31:09 am »
Hi

Had it a couple of times.

Told by one after actually driving for about 7 miles that they had found someone a x price...

I said ok, let him do it then...

at the end of the day you are always going to come across people with the ' car boot' attitude. They want discount after discount, or something off, or they try and haggle  etc etc.

Charge what you are worth.

Regards

Martin  8)

Dynafoam

Re: You Are Too Expensive!
« Reply #8 on: September 02, 2004, 01:31:53 am »
Quote
Hi

...................Charge what you are worth.




Blimey Martin,


I'm not cheap, but I'm not THAT expensive  :o :o ;D

John.

Doug Holloway

  • Posts: 3917
Re: You Are Too Expensive!
« Reply #9 on: September 02, 2004, 10:44:51 am »
Hi Guys,

It used to bother me when people criticised my prices , but I have now rationalised this  by quoting a price which I would be happy to do the job for.

If the customer wants it done cheaper then they can find someone else.

Of course I will be flexible within the parameters of my price by adding on say 10% which can then be taken off so customer thinks he has done a deal.

As for certain ethnics I have turned this around by quoting ridiculously high prices to counteract their ridiculously low prices.

Cheers,

Doug

woodman

  • Posts: 1069
Re: You Are Too Expensive!
« Reply #10 on: September 02, 2004, 07:20:16 pm »
I have a couple of scripts I use when confronted by a price barrier. As all research has shown that price is not the deciding factor when purchasing a service you must discover what the real reason is why they want to question your prices.

When someone says your price is too high or your too expensive, don't get all moody and try to defend your prices as this will not work and just puts you on the back foot.

I answer by saying politley... 'why do you say that'... and wait for the response.

That simple question has now put you back in control and then allows you to answer the response by explaining confidently why your price is what it is. A top salesman told me this years ago and amazingly it works.

I accept they may have a concerns with the price as we all do with whatever service we are buying, but had they considered that if they just go for low price then they will be accepting a low level of service with a high level of risk, with my service they get a high level of service and low level of risk this is due to the fact..... and then I go on to explain training, insurance qualifications etc.

When they ask if I could be any cheaper, I reply that cheap means exactly that, cheap. Cheap materials,cheap equipment,cheap labour with little or no training  = cheap job.
with cheap outcome.

I keep emphasising the word cheap the customer will start to feel cheap and soon the resistance starts to fall, once again I then explain the benefits of using my system and all that goes with it and more often than not the job is booked.

Works most times but when faced with a stone wall and wants it for nothing (luckily very few and far between) cut the visit short and walk away.

paulchambers

  • Posts: 530
Re: You Are Too Expensive!
« Reply #11 on: September 02, 2004, 08:21:12 pm »
--------------------------------------------------------------------------------
I spoke to a women of another guest house today  

she hires a carpet cleaner for local dry cleaners , i offered to do a room for free she said no thanks, i then offered to do half the room when she cleans the other half to see which side is the best she still said no as it takes days to dry i said myside will be dry in a hour with my blower or 2 without it she still said no thanks  

Paul

woodman

  • Posts: 1069
Re: You Are Too Expensive!
« Reply #12 on: September 02, 2004, 08:33:49 pm »
;D

then I think the last paragraph applies don't you!

Re: You Are Too Expensive!
« Reply #13 on: September 02, 2004, 09:13:17 pm »
We are not TOO EXPENSIVE or else we would have no work ::)
Basically we are not AS CHEAP as they would like  :o
Speaks volumes about them, not us  8)
Recently quoted £179 to clean corner seating units, was told by lady of the house that she had been quoted £65 by someone else. I handed her my quote and wished her well and left. I had travelled 2/3 of a mile when she called saying "my husband says yes, when can you do it".............not a natural born poker player :-/

Robert_O

Re: You Are Too Expensive!
« Reply #14 on: September 03, 2004, 12:09:11 am »
Hi

If I have let customers beat me down on price in the past, I have felt so demoralised, that now I always stick to my guns, "that is my price, but your worth it"!!! :-/ ;D ;)

Regards

Robert


Derek

Re: You Are Too Expensive!
« Reply #15 on: September 03, 2004, 12:21:58 am »
Robert

Demoralised...that's a good word!

If you take a cut on your prices isn't it the natural instinct to start clock watching?

You get what you pay for in this world...simple fact of life!

Derek

jlyip

  • Posts: 7
Re: You Are Too Expensive!
« Reply #16 on: September 04, 2004, 01:31:38 pm »
I am sure that most people would not tell a doctor or lawyer he is too expensive ... We need to know our value and continue to be professional through constant training etc.
At the same time, know that they many types of customers out there, so as not waste my time I offer them usually two quotes : my normal ( hot water extraction )and a cheaper alternative ( dry cleaning ).

shaun_pearson

  • Posts: 104
Re: You Are Too Expensive!
« Reply #17 on: September 04, 2004, 04:12:51 pm »
i think it depends on what end of the market you are aiming at. some peolple are prepared to pay a bit more within reason for a similar service whereas some are price conscious. for example some people will buy no frills teabags, some will buy tetley and some will buy twinnings.  there is a difference between each brand, but they are the same end product.  it depends how you market yourself and what market you are aiming for.

im off for a cuppa.......tetley

Dynafoam

Re: You Are Too Expensive!
« Reply #18 on: September 04, 2004, 11:09:45 pm »
Shaun,

I don't drink tea but certainly not all carpet cleaning is the same product, just as jason_bs' recycled tea bags** would not match your Tetley.

John.

** These come with a 10% discount if you don't want them dried out first and every pack comes with built-in stain-proofing.

Shorty

  • Posts: 49
Re: You Are Too Expensive!
« Reply #19 on: September 05, 2004, 05:37:54 am »
Nearly two years ago, I was asked by a Government organisation to quote on carpets in their houses.

At this time, they had four cc'ers doing their work.

They wanted a room quote.

When I told them that I don't charge by the room, but by the M2, they said 'NO, it must be by the room'.

So I checked out about ten houses to get an average.

My price was six Dollars a room dearer than their cheapest cc'er, and three Dollars a room dearer than their dearest.

When the manager asked me how I could justify my prices, I said.

'If your other cleaners cleaned as good as what I think I do, maybe they should raise their prices'.

'Fair comment' was all he said.

Fifteen moths ago, tenders were called.

I am now the only cc'er doing their work.

He did not ask me to drop my price, and I did not offer.

But I still miss quite a bit of work due to my 'excessive price', as some have put it.

I don't worry, just move on and smell the flowers, they're always better on the next job.

Cheers,

Shorty.
Shorty.

The short, round, mound of sound, from up top, down under.