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Builders - Do You Ever Have Clients Tell You "Your Price Is Too High"?


"Your price is too high" is a tired old line that your customers have been trained to use to get you, the builder, to pull back on your margins. We have so many builders telling us that they are hearing this feedback from customers, even though they know they have already cut their quote to the bone.

And really - do your clients actually know if your price is too high compared to the market?

It’s likely they have been told by the media, their neighbours, someone at work, their family, whoever, that if they tell you "your price is too high", then you will, in all likelihood, feel obliged to reduce your estimate.

I have a friend who regularly tries this and says he’s surprised how often people will reduce their cost, even the major chain stores. I decided to try it recently at a Rebel Sports store at our local Westfield and they asked me if a $30 discount would be ok. So, I know it works, and I’d recommend it when you are the customer!

Lowering your price to win a job is exactly what most "order takers" will do. However, an educated builder knows better and won’t budge on their price (unless the client changes the job specs).

"Your price is too high" (and that statement can come in a number of different forms) simply means that you have not done your job as a ‘salesperson’. Plain and
 simple: you have missed some very important steps in the ‘sales process’.

First of all, the number one rule for sales is to ‘qualify’ your prospect. You need to pin down the budget to the point that you know exactly what the customer wants and what they are willing to spend.

To do that, begin with these four essential questions:

  1. What do you want to do?
  2. When do you want to do it?
  3. Who will make the buying decision?
  4. What does that person(s) want to spend?

If you get the answer to (at least) those four questions, you will be on your way to getting a "yes" much quicker. Sticking to, and getting the answers to, those four questions will help you qualify your prospect and save you a world of pain in wasted time and energy down the track.

Knowing the answer to these questions will take your sales conversion rate from 1 in 6 to 1 in 3 very quickly - without having to lower your margins. Learn the technique, ask the questions, get the answers and watch not only your sales increase, but your profits increase as well.

If you’re wondering whether there’s a better, more efficient way of managing your construction business, from first enquiry through to handover, then click here to learn more about how you can join us on Friday 7th August with some of Australia’s and New Zealand’s most successful small and medium sized builders to learn how to streamline your sales process and boost your business.

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Kurt Hegetschweiler
As the founder of Builders Coach, Kurt Hegetschweiler is quickly becoming recognised as the building industry's "Millionaire Maker", helping 100s of builders in Australia strategise, streamline and systemise their businesses for improved work-flow and profit. Since 2004 Kurt has personally coached and mentored close to 500 small and medium sized building companies. Kurt prides himself in delivering less information and more results, using industry specific, real life, hands-on, no-fluff business strategies that work. Kurt is also the co-author of "Would you like profits with that", the first business book published in Australia exclusively for the building industry.

Kurt Hegetschweiler