Tips to Stop Sticker Shock and Get More Sales
Sticker shock is a challenge that many home improvement contractors frequently find themselves battling. It is one of the most common reasons for not closing a sale. Sticker shock is the largest cause of potential customers reconsidering projects and not signing a contract during the initial sales meeting, which decreases the chances that they’ll buy at all.
Why does this happen? Well, the fact is that contractors offer services that are fairly expensive and are also not a common purchase for most people. Thus, most homeowners don’t have an accurate framework for estimating how much they should expect to pay for these services. And, when left to their own devices, most tend to underestimate the cost.
Below, we’ll cover a few simple actions you can take to stop sticker shock from negatively impacting your sales.
Use Pre-Positioning Materials to Set Expectations
Are you effectively using pre-positioning materials? Pre-positioning materials should be created to provide a potential customer with all of the key points you’d make during a sales meeting to win them over on pricing. If done correctly, you’re essentially setting expectations before “shocking” them with the cost.
Consider providing prospects with a brochure that details specific info about the service you sell that they’re interested in. This simple handout allows you to begin building a case for the value your services offer before you even sit down for the sales meeting. It’s a terrific opportunity to showcase your strengths while educating prospects on what to expect from your services. Plus, since it’s in writing, it assures customers that you are credible.
Follow-Up With a Confirmation Call
Now, pre-positioning materials are great, but how do you ensure that your potential customer reads them before meeting with you? One easy way to increase your success is by following up with a confirmation call. Start with a call to confirm the initial sales meeting, and use this call to also ask your potential customer if they’ve had a chance to review the brochure you sent. If you sense any hesitation, remind them that the brochure is a great educational resource to assist them in asking the right questions during your meeting. This will allow them to feel more confident in their choices, which can ultimately help you close on their project.
Offer Financing to Your Customers
Offering financing to your customers comes with a variety of benefits for both parties. For instance, one benefit is that you might be able to offer better terms to customers than they would have if they were paying up front. Customers can pay in small amounts over time instead of having to pay a large lump sum immediately with cash. This lessens the chance of the customer experiencing sticker shock and believing that the project is unaffordable.
Make life easy for your customers by providing financing with reasonable monthly payments. Medallion Bank cares about your customers, and we want to keep them satisfied just as much as you do. We offer standard installment loans that feature affordable monthly payments and competitive interest rates for your prime credit customers. If you are interested in partnering with us, please contact us today.