When working in the HVAC, plumbing or electrical industry, you are asked to perform some rather meaningful jobs in both commercial and residential sites. Whether you are installing new ceiling fans and light fixtures or designing the heating and cooling systems in a home, you are trusted to do the job correctly to receive payment. However, it is rather challenging building the appropriate price for your product and/or service. Many companies experience conflict with selecting prices because they don’t want to overcharge and end up driving away customers. However, they don’t want to undercharge and have the jobs fail to be worthwhile. Let’s face it, if you aren’t getting paid for what you think you’re worth, it’s almost impossible to feel satisfied in your career. Now, how do you find a happy medium in pricing? You must look at your skills and what you offer to value your company correctly and show that in each sales pitch.
The main idea is to gain the trust of your customers. You want them to have faith in your company’s qualifications. If you are unsure of yourself when naming a price, consumers will question the vitality of your company. For example, if you were ordering a pizza and asked an employee’s opinion on the taste and they seemed unsure and hesitant but said, “this is the best pizza ever." Would you buy it or run to the next pizza shop? Whether it’s a pizza or all new pipes in your bathroom, buying anything is an investment and buyers always weigh their options. Are up to the challenge of uncovering your value? Read the tips below to ensure your current pricing reflects every penny you're worth.
Company Values- The bigger your market is, the more likely most companies are discouraging gaining power instead of growing it. Take advantage of this and dig deep into what your company stands for and why your service is a must-have. Sell your brand in a way that makes you worth more than the initial offer. Ask yourself the following: Why are you the perfect fit for the job? In addition to existing obligations, what else do you provide? You will find greater success while discussing your product to a customer if you make your pitch relatable. Think about what your core values are and how your concerns are in sync with your target market. For example, If you work in a lot of residential homes, and a family needs all new pipes, express how your services are conducted with the protection of their family in mind. The modern homeowner doesn’t want to feel like they are speaking to a robot. If you provide services in other people’s homes, you must make them feel safe and confident in your company. Remember, a happy customer usually has no price objection.
Proper Pricing- When pricing your services or product, reflect on what you are offering and think of your ideal margin. Then ask yourself, are you worth what you charge? Give the customer an incentive to look for value outside of the product itself. The internet holds unlimited information that you can use to research what competitors in your field are charging for the same or similar purchases in your geographic location. Look at what services your offer compared to your competitors, identify where you fall into the mix and price accordingly. By expanding on your knowledge of your price and what you offer, you are showing that you are more knowledgeable than the average competitor.
Sales Pitch- Your sales pitch is your shot to show the potential client that you offer the best services at a competitive and justified price. Practice giving your pitch to a family member or friend. Sometimes the ones that are closest to us, are the hardest to impress and hopefully, will provide you with constructive feedback. Ask what areas need improvement. Did you come off professional? Where you convincing? By rehearsing your pitch, you are becoming more comfortable with the process. This will also increase your chances of being able to just ditch the ‘script’ and speak from the heart. Take the tone of your voice into consideration as well. If you come off confident, that can really sway a negotiation in your favor. Remember: It's not just what you say, it's how you say it! When speaking to a customer about the cost of a job, you are in the perfect position to navigate the conversation around your strengths. When delivering a sales pitch, you must show that you are passionate and believe in whatever it is that you’re selling. If you give an unemotional explanation followed by an expensive price or rate, chances are, the customer will look elsewhere.
Davisware Tip: Remember to keep it professional.
Once you have a great price that reflects your services and the information to justify that number, you are good to go! However, that doesn’t guarantee that you will get every account you set out for, there will always be competition in every industry but allow it to fuel your motivation. Remember how important it is to keep your existing customers happy. In retrospect, getting the account is the easy part. Keeping them satisfied will build you a loyal customer base and with great service, comes great referrals. After all, there won’t be any buyer's remorse if you keep your clients happy!
For more information on how to maximize your profit and company value, click here!