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I tell them I cost more... then tell them why

Discussion in 'Business Operations' started by DiscoDave, Mar 6, 2012.

  1. DiscoDave

    DiscoDave LawnSite Member
    Male, from Midwest
    Posts: 196

    I am not interested in competing on price (because I can't). My niche is better quality and higher in price and it is working!

    I tell our prospects before they even see my price to expect us to be one of the higher prices they have received. I follow up by giving them five bullet points of why I am worth it.

    This takes away their impulse to want to negotiate with me when they receive my price. They also don't immediately dismiss my quote simply because I am higher. They open my proposal expecting a higher price and look for reasons to justify hiring me despite it.
  2. Gmgbo

    Gmgbo LawnSite Senior Member
    Posts: 382

    I always tell them In not always the cheapest too, weeds out the price shoppers.
  3. Roger

    Roger LawnSite Fanatic
    Posts: 5,922

    The pool of non-price shoppers is small.

    Consider all the LS threads about equipment. What is the first question: How much? Read the current thread about a new sulky being offered. Despite all the talk about features, the question of price kept coming up, until the $500 price tag was made public. LCOs seem to be right up at the top of the list for price shopping. We have no reason to expect anything different for routine, menial work of grass mowing. If you are offering a unique service, then you have leverage.
  4. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    There is only so much quality you can talk about on the maintenance side it's all about the level of service that makes the difference, it goes back to the fact that people do business with people they like and trust.
  5. DiscoDave

    DiscoDave LawnSite Member
    Male, from Midwest
    Posts: 196

    The whole idea of starting my process with talking about my higher prices is to convert them from price shoppers to quality and service buyers. My job is to change the way they approach making a buying decision. I do not let the prospect control the sales process. I listen and gather information. Then I go to work changing their mind.

    Remember, I am not selling a tangible item such as a sulky. I am selling a LEVEL of service and a PROMISED result. I remind my prospects that the level of service and quality of work they receive is contingent upon the ability of the service provider to perform. Then I describe how I can deliver on the promise.

    This is more difficult on the mowing end of my services. Since folks see mowing as a brainless activity that anyone can do (and let's face it... it is) our mowing service is a sidebar for all of the other things we offer.

    Now if all they want is a mowing price and they do not have any use for our additional services, I am not likely to get that account. Frankly, those are not my target customers anyway. Pre-qualifying the prospect is a key to knowing how to approach the process with them. Find out early if they are price driven or quality driven.

    Cpllawncare is right. People PREFER to do business with people they like and trust. However, they constantly buy from lowball companies that they don't care for because their prices are just so darn low. Now, if they like and trust you, they are more likely to look for reasons to spend a little more with you.
  6. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Dave, I like the way you think, I want to learn the process of converting these folks from price shoppers to quality shoppers as mowing is the back bone of my business. I'm trying to change that, it just takes time to learn all the other things that you need to be an expert on to really be able to sell "Other services"
  7. maelawncare

    maelawncare LawnSite Senior Member
    Posts: 418

    Any chance your show your bullets of knowledge. :)
  8. agent walker

    agent walker LawnSite Senior Member
    Posts: 460

    just curious what your bullet points are??
  9. DiscoDave

    DiscoDave LawnSite Member
    Male, from Midwest
    Posts: 196

    I sent you both a PM.
  10. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,499

    Look at mowing say a 40 lawn. You can say all you want about quality but you can only charge what the market will bare. So you can't say I'm going to use new equip, fully insured, uniformed, new trucks, all people are plant biologists and get 150 to cut the lawn. If everyone else is bidding 30 to 50 your market is just that. So how can you get more than what your market brings in?
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