Here are 3 valuable ideas to help you escape competing on the lowest price for your remodeling projects and get the full price you deserve.
“How can I obtain new construction customers without having to lower my prices to compete with lowball bids?”
“I provide high quality, attention to detail construction and remodeling services. What I do will last and look great for a long time. But, I’ve got to compete on price with remodelers and construction contractors who cut corners, use inferior materials, and won’t make the customer happy long-term. No matter what I say, prospects think what I offer is no different than Mr. Cut Rate. How can I possibly charge what I am worth?”
This is an age old problem for contractors. Consumers often don’t see or appreciate the value of good work and act like all contractors are the same.
How can you escape the world of being evaluated only on price?
Let me show you three things you can do that will–
- Increase the perception that what you offer is more attractive than your competitors
- Separate you from the competition
- Enable you to charge more than you are currently charging
- Generate more customers and more sales
Sound too good to be true? Read on!
1. Bundle Up
Did you know that 1 + 1 = 3? Okay, it doesn’t. Well, not in the world of math.
But in the world of business, bundling some of your products or services together can offer your customers a great value that they perceive as much bigger than the sum of its parts.
Bundling services and products together increases the overall “perceived value” and you can charge accordingly.
You see this on TV all the time
This is a very tried and true formula in other venues. For example, have you ever seen those commercials for some kid toy or kitchen gizmo? What do you ALWAYS hear toward the end of the 30 second infomercial?
“But wait… there’s more!”
The more is often some additional (but lesser value) product that has value to the buyer.
“In addition to the incredible kitchen appliance we are offering… you also get another cool kitchen toy that you can use to quickly peel fruit, veggies, and even small animals!”
Disclaimer: that last part isn’t true for those of you who can’t readily discern sarcasm.
This additional item may not be a huge deal by itself, but combined with the original offer, it makes the whole package more valuable.
Here is the point you need to consider: These commercials ALWAYS offer an additional item or two… because it always works.
Construction project “packages”
Ok, it’s your turn. What construction products or services do you have that complement each other nicely? Like selling a pair of shoes and including 3 pairs of socks. Or a fast food combo.
Maybe a kitchen remodel… and a nice new appliance of their choice? Note: the appliance list to choose from would be provided by you.
The complementary item can also be an upgrade: “With our kitchen remodel project we are offering a free cabinet (or countertop) upgrade..”
Here’s how this bundling with help you stand out and make your offer more attractive: Your customers won’t find that exact offer elsewhere. Plus, the value of the two items will always be more attractive than the single item the competitor is offering.
Your customers might just explode from all the value they’re getting. But hopefully not before they buy. That would be unfortunate. For everyone.
2. Limited Time Specials
Everyone wants to feel like they got a good deal and struck whilst the proverbial iron was hot. They want to feel special and important. They want to be “in on it.” Why else do you think secret societies or the Kardashians exist?
Exactly. It’s certainly not for the outfits.
Limited time special deals can be a great way to capture new construction customers. But there’s a crucial factor to your special that you have to nail. Do you know what it is?
You can have scarcity in time and quantity. Make your deal last for a limited time (this week only, or the next 48 hours) or offer only a certain number of deals. There needs to be an appropriate sense of urgency to propel your prospect to take action.
Finally, make sure that your deal truly is a great buy. I can’t emphasize that enough. Make it great or it won’t work.
3. Payment Plans
Let’s face it. Many remodel jobs give your customers sticker shock when they first see them. Payment plans can reduce and offset the initial reaction of “I can’t afford this.” They can make something doable that wasn’t within reach beforehand.
Your flexible pricing will ward off competitors while at the same time it will help you close more business.
You can even charge more with a payment plan. Sound crazy? Many businesses who use this strategy set a lower one-time payment price and a higher overall price for the payment plan.
For example, say the full price of your offering is $999, but some customers can’t drop all that dough at once. For that particular payment plan you decide to charge $300 over 4 months. You just made 20% more off that sale. And if they weren’t going to buy initially because their wallet wasn’t big enough you just made a billion percent more. Roughly.
Your next step
Pick one idea and come up with 3-4 possible ways you can do it. Then, contact a few of your best customers and get their honest feedback on the attractiveness of your offer. They may even have some suggestions to make it more potent. Don’t rely on what you think is a good deal. Find out what consumers think.
Do you want more great ideas to increase your construction and remodeling revenue?
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