https://youtu.be/siMWo8PJj2c
IN THIS VIDEO, COREY PHILIP TALKS ABOUT HOW TO:
- Strategically respond to “Your quote is higher than others”
- Get your customer to pull out their bid in a subtle way
- Win the project without lowering your price
FULL TRANSCRIPT:
Those are two common objections that you will get all the time when you are selling home improvement services.
It doesn’t matter if you are an electrician, a carpenter, an HVAC guy, or patio and deck builder like I am.
You’re always going to give estimates and you’re always going to get that response — “Oh my God. I’ve gotten a lower price” or “your price is higher than the competitor” something to that effect.
This came up in my Facebook group a couple of days ago.
“What do you say to these people when you get that objection?”
And it kind of shocked me the response — it didn’t really shock me but it kind of um kind of raise an eyebrow to see how people are responding.
And the general consensus is say something to the effect of “Well, you get what you pay for” or “call me after they walk off the job”.
Something like that.
Something that basically implies that “we’re higher quality than whoever else is bidding lower that you know my quality is higher”.
And I was kind of, I guess I was not impressed by that.
I think there’s a lot of opportunity that gets missed when you respond like that.
I’ve been in that situation.
And you know, early on I would respond like that.
Eventually, I found something better which I’m going to tell you now.
The thing is you’re going to address the core problem and you have to kind of attack it and break down that lower bid and get that bid totally discredited and then build yourself up.
You have to put everything in context.
You just can’t say “well, I’m better” or “we’ve got better reviews”,”we’re a great company” or, “we’re highly reputable”, or “we use good material” or something like that.
You have to put whatever you’re saying into a literal context.
Okay.
So, when a customer tells me “Your quote is higher” or “I’ve got a lower bid”, my go-to response for that is “Let’s take a look at their bid and see if there’s anything they aren’t including that I could back out of mine.”
“Let’s take a look at their bid and see if there’s anything they aren’t including that I could back out of mine.”
Okay, that’s a real subtle way of getting the customer to pull out their bid.
Because, if you just come right out and say “Okay. Well, let’s pull out their bids. Can you show me that bid?”
They get defensive.
When you present it as I did right there, they’re really warmed up to it, and go “Okay, maybe this guy’s going to lower his price.
Let’s get out these other bids.”
Now, they’re going to put out their other bids, and that’s when it’s up to you to work your magic.
So, generally at that point what I will do is I’ll kind of immediately discredit the other company you know when they put the other bid out there.
I will say “Have you done your due diligence on these guys?”
You know, chances are maybe not or they’ll say something but at that point, you’ll get to discuss their reputation openly.
Sometimes, you know, they are a reputable company and you can’t say like that, but in other cases, you can be like “Well, you might want to check these guys out here.
Let’s pull them up in Google.”
And show them the bad Google reviews.
Show them, read them literally, verbatim read what some of the other customers are saying.
And at that point, say, “Have you checked some of any of ours ‘cause you’re not going to find anything like that.”
And then at that point you’re, you know, you’re already starting to dismantle this other company, now you can dismantle their bid.
So, at that point, go through it.
And things that aren’t line item, things that aren’t specified, bring those out.
Call those to that customer’s attention and note how you are line item them.
And if you haven’t line item them, here’s your opportunity, you know, write them on your paper.
So, now you’re raising the bar, raising your standard at the same time, you’re getting the
opportunity to compare your level of reputation to the other bidder. So, it’s a killer approach.
You got to get the other bidder in front of you and then at that point effectively dismantle it.
And my go-to line for doing that is “Let’s take a look at their bid and see if there’s anything they aren’t including that I could back out of mine.”
Gets the customer warmed up.
Gets the bid in front of you, and I find that it’s a much better approach and has a much higher success rate at closing a deal and selling a project than just saying “Well, you get what you pay for” and walking away with that attitude.