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View Full Version : Closing the Sale Every time


tiedeman
03-29-2006, 03:38 AM
What about this idea:

I am going to give an estimate to a customer that was referred from a current customer. He is going to get an estimate from me and from Trugreen.

Currently right now what I have been doing, as many of you know, is offering a 15% off deal from TruGreen or their current provider. How I am doing this is in my spare time I drive around, find houses with the TruGreen sign, and then send them marketing material.

Well, would it be wise to present this gentleman my flyer with my estimate stating, "Here is my price of the estimate, but if TruGreen comes in lower, I will offer 15% off of what they charge." Sure, yes there might be sometimes of where TruGreen is actually lower, which would be like maybe 1% of the time, but you are almost guaranteed the sale everytime. Wouldn't you basically close the sale then every time?

Steve
03-29-2006, 03:41 AM
I don't think you need to go 15%. If you want to, experiment with it. But just the idea of meet or beat it, is great. You could even offer 5% and then push that you are a local company with personal services.

That, I would think would be enough to push them over the top.

But that's just my thought.

tiedeman
03-29-2006, 03:44 AM
So you personally think that a customer would risk changing another company for only 5%?

I am not riding you, I am just curious from your point of view. I think that a customer would be more willing to charge companies if it was like 15% or more, perhaps 10%.

Steve
03-29-2006, 04:01 AM
Oh good point. I was thinking more of choosing between one company over another.

But you do make a good point. To get them to switch from one company they are already using, 15% would get me to switch.

I didn't think about it that way.

Yea you might need to give them an extra incentive because we all are creatures of habit. We tend to avoid change.

tiedeman
03-29-2006, 04:03 AM
That is true. I am just thinking outside of the box. If I am wasting my valuable time giving an estimate, and not close, why not make it for I can close it everytime. Can you imagine being able to close an estimate 75 to 80% of the time.

Steve
03-29-2006, 04:09 AM
That would just be amazing and I know you can do it!

NickN
03-29-2006, 09:57 PM
Here's the problem as I see it.You need to make money for you,not Truegreen.So,you need to base your prices on what you need to make a living.I've seen too many people lose business' because they were trying to meet or beat the competitions prices.Remember Motorola at one time sold modems.I worked for Motorola and they stated they were going to run US Robotics out of business.We were losing $3 on every consumer modem we sent out,in order to beat their price.Well,US Robotics is still making modems,Motorola isn't.

tiedeman
03-29-2006, 10:14 PM
Nick,
If you read some of the other posts that I have posted on here lately I will actually make more money doing the 15% off thing, compared to charging my normal prices.

I already charge a certain amount no matter, it just so happens that my current amount is lower than TruGreen, yet customers do not necessarily know that. *So to get my foot in the door I offer the 15% off thing. *When in reality, I am actually making more money by only going 15% off from their price, compared to using my price.

Steve
03-30-2006, 01:40 AM
Hi NickN,

Is it possible that Motorola just couldn't make the modems for the price US Robotics could? If they couldn't, it was a bad decision to lose money on each sale. But on the flip side there are times when companies can offer a lower price because of many factors such as lower overhead.
For example, Sam Walton was able to run a tighter ship and sell products for less in his Wal-Mart.
You just need to know what your costs are in order to do this. Otherwise you will sink.

ritchiem
03-30-2006, 08:13 AM
Ok here is my point of view.

With a price there comes value.
With value there comes a price.

I am the most expensive guy on the block and I have a 95% client retention rate. What I offer my clients is what they pay for and more.

I had a company go to every one of my clients with an ad stating that they would offer a quote 10% lower then their current provider. I had clients calling me telling me that this company was doing this cutthroat approach. So I asked them why they called and why they would not switch? They said that they expect to pay more for the level of service I provide.

In my opinion you cannot beat your competition on price (most of the time). There needs to be more;

- Quality of work (100%, 100% of the time)
- Value for their money
- On time all of the time
- Trust
- Need to look and act professional

Clients will pay more (and expect to pay more) for higher levels of service.

tiedeman
03-30-2006, 12:21 PM
That is fine,

I am the second highest in the area in regards to applications right behind TruGreen.

I am the highest in the area in regards to lawn maintenance. *

For some reason I think that you guys think that I lowball or provide poor quality service and to be quite frankly, it is making me upset. *It's starting to get to the point where this board is turning to be just like the other forums.

Steve
03-30-2006, 12:53 PM
Hi ritchiem,

Do you have suggestions for a newer business trying to break into the marketplace?

What do you feel is the best way to go about this?

ritchiem
03-30-2006, 02:05 PM
Oh no tideman I would never say that (unless it was truly apparent), and I do apologize if I suggested that.

So you would say that TruGreen is your major competitor?

ritchiem
03-30-2006, 02:35 PM
That is a good question TG... you know, there is a lot more to a successful company then a shiny truck and trailer.

And not to go too far off topic I have moved that question here. (http://www.gophergraphics.com/forum/cgi-bin/ikonboard.cgi?act=ST;f=1;t=2110;r=1)

tiedeman
03-30-2006, 03:00 PM
Quote[/b] (ritchiem @ Mar. 30 2006,2:05)]Oh no tideman I would never say that (unless it was truly apparent), and I do apologize if I suggested that. *

So you would say that TruGreen is your major competitor?
I appreciate the apology. And I am sorry if I offended you as well.

Yes, at this current time TruGreen is my only major competitor that has a definet lock on the application side of the business around here. They are approx 3 other companies that I have seen around here that do lawn applications that are licensed that I know of, but they probably only maintain about 3% of the lawn application customers in the area. I probably currently maintain around 1%, while TruGreen maintains 96% of the customers here. That is why such a big push with trying to wrap up more customers and try to steal them from TruGreen.

The other companies prices are much lower than mine as well. If would to break down the prices I am usually around 15 to 20% lower than TruGreen, and the others are probably around 15% lower than me. For example, TruGreen may do a 15,000 property for $90, I can do it for $72, while the other companies may do it for $60.

Right now I am at the point of the lowest that I really want to go. I know that I could perhaps go a little higher but I am afraid that the way TruGreen has the market wrapped up that customers may just decide to stick with a company that they have been with for years and years, compared to switching someone that might only be $5 cheaper. That is why I offered the 15% off thing just to get my foot in the door and present my case to customers.

Billz
03-30-2006, 08:12 PM
I cant believe Trugreen is so high there...Here they would bid like $40 to do 15,000 sf, but then they get the accounts and fert them 7 to 9 times per season. I still have a couple mowing accounts that use them, and there is no way I can convince them that a 4 step program with me would be better for the lawn, and cheaper for them too. maybe I just have dumb customers! LOL

tiedeman
03-30-2006, 08:35 PM
The problem here is that there are basically no other companies licensed in the area. *In Clare County alone, the county in which I live in, there are only three actual companies (including myself) that reside here that are licensed. *The other company that comes is 35 miles away two counties away, and then TruGreen comes from approx 40 miles away, approx three counties over.

TruGreen knows that they can get away with charging customers more because there is honestly nobody else around here that does applications. They usually charge around a $45 minimum no matter what

Billz
03-30-2006, 09:49 PM
Well, it sounds like you know your angle. I would be out every day looking for their signs. maybe offer to actually call trugreen and cancel for people. That seems like the hardest part to get someone new to commit to. Do all the leg work for them...alot of people are lazy and like to have things done for them.

Steve
03-31-2006, 03:01 AM
I really think Troy hit on something big here. I bet this year we are all going to see him grow a lot.

It's a smart strategy I feel. There is one company with little competition so of course they are going to maximize their profit potential by charging as much as they can.

Consumers may even pay more because it's a nationally recognized company with a perceived value.