# Getting ready to launch a new concept - haters get ready, you'll love this one!



## Mike Finley (Apr 28, 2004)

I'm getting ready to launch one of 2 new marketing concepts for our company, that I have been mulling around for about 6 months. 

Either will be the:

$500.00 money back guarantee if customer can beat our price.

or the

$500.00 money back satisfaction guarantee.

I've been considering both of these for some time and think I have them figured out enough to impliment one of them. I'm going to do them one at a time I think just to be safe and get the kinks worked out.

Either of these have the potential of being pretty powerful tools for us in both setting ourselves further apart from the herd and as closing tools to sell more jobs.

Bring on the beatings!:bangin:


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## Cole (Aug 27, 2004)

I say go for it, let me know how you feel in a year.


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## George Z (Dec 23, 2004)

Mike Finley said:


> I'm getting ready to launch one of 2 new marketing concepts for our company, that I have been mulling around for about 6 months.
> 
> Either will be the:
> 
> ...


Apples to apples is impossible to compare, so the first one is safe.
Go for it.


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## dirt diggler (May 14, 2006)

call baaaaaath fiiiitter


were' the perfeect fiiiit




:laughing: :laughing: 


BOOOOOOOO:laughing:


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## dirt diggler (May 14, 2006)

alright ... over my head ... which means I should just sit back and wait

nah


mike - from what i gather just from reading your posts - I figured you to be on the hi-mid to high range in pricing. 

Are you bidding in an extra $500 just so you can give it back (when you know they'll find a better price) and say "aw shucks - ya'll got me good!"

and/or

giving them $500 credit or cash back if they say "well ... it was alright ... nothin special"

im exploring incentives myself ... but these two examples are yuk-yuk-yuk ... 

and liable to offend someone getting ready to spend $90 on a new kitchen/bath


or did i just miss a huge joke. great ... laugh's on me now:laughing:


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## Danahy (Oct 17, 2006)

sounds like a plan.


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## copusbuilder (Nov 8, 2005)

Danahy said:


> sounds like a plan.


Oh, I thought you said sounds like a pain.

Mike, I will bite my tongue but think it through. Your better than that


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## Mike Finley (Apr 28, 2004)

These two are actually pretty mild, wait till I roll out

"Annual World's Ugliest bathroom contest"

"Every 100th bathroom we do it free" - gonna need Ed McMan for that one!

and the free annual vaction on us for referals.:laughing:

Dirt - rest assured there is no mark up to mark down going on.


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## PressurePros (Jul 3, 2006)

There is a car dealer around here that says $10,000 for your trade. Tow it in, push it in, bring in the stering wheel we'll give you ten grand or we'll make your first two payments. Clever but misleading. Not my cup of tea. Are you gonna share your plan of attack, Mike?


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## dougchips (Apr 23, 2006)

We use a price match guarantee as a closing tool. I am to lazy to copy paste it, so here is most of it from memory:

1. Same brand of products. Same style of products.
2. The other company needs to of been in business for more than 5 years.
3. A-The other company needs at least 1 mil in general liability insurance.
B-needs to have workers comp coverage.
C-Needs to have a state license.
D-needs to have an established business location-no SWB's!
E-needs to conduct criminal background checks on all of their staff.
F-needs to conduct drug test on their installers.

If someone can offer the same products and the same level of service that I provide for a lower price I will beat their price and smack them on the head. I have yet to smack someone on the head!


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## Mike Finley (Apr 28, 2004)

I've got a couple of ways I am thinking of the $500 money back guarantee. The one I am leaning toward the most is I give every customer a company check for $500.00 on the first day the job starts. There is some legal stuff to give them and have them sign at contract signing, but basically we get the check back at the end of the job as long as they are satisfied. The definition of satisfied of course is the key, you have to define it as the scope of work was fulfilled and of course if there is a problem that we are allowed to attempt to fix it until they are satisfied. If we just blow it, then so be it, cash the check with my blessings. We're not out to do anything but deliver perfection, so I'm going to put my money where my mouth is _(Probably take it out of the employee's profit sharing for the job!!:clap: I know you will all love that one!)_

The customer handing us back a $500 check because they are totally satisfied is an awesome, concrete, and physiological solidification of their acknowledgment that they are totally happy.

Will we ever be screwed? Sure, it's probably _guaranteed!_, will it ruin us? No. The good from this will far out weigh the bad. I would consider getting screwed once in awhile money well spent for the return of what this will do for us.


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## AAPaint (Apr 18, 2005)

Negative ghost rider. :no:


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## Teetorbilt (Feb 12, 2004)

Business slow, Mike?


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## Gordo (Feb 21, 2006)

Mike Finley said:


> These two are actually pretty mild, wait till I roll out
> 
> "Annual World's Ugliest bathroom contest"
> 
> ...


Cooter, can you pass the jug o shine?

sURE gORDO. tHANKS COOTER.

:laughing: 

Mike, let these words sink in......YOU ARE RELYING ON GIMMICKS.

I thought you were marketing to an exclusive sector? The exclusive sector is one that is educated and verse on schemes.

With your scheme (yes,scheme), you will most likely have bottom dwellers consuming every fiber of your mental faculties.:w00t:


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## Gordo (Feb 21, 2006)

Teetorbilt said:


> Business slow, Mike?


:w00t: :laughing:


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## Mike Finley (Apr 28, 2004)

Teetorbilt said:


> Business slow, Mike?


Not at all, we are booking into May now. How bout you? We've been booked out on consistantly 3-4 months since September 2006.


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## Mike Finley (Apr 28, 2004)

Gordo said:


> Mike, let these words sink in......YOU ARE RELYING ON GIMMICKS.:


Might look that way. However, "relying" is probably a gross over exageration. We actually rely on doing great work and completely satisfying our customers, and I'm prepared to put my money where my mouth is.



Gordo said:


> I thought you were marketing to an exclusive sector? The exclusive sector is one that is educated and verse on schemes..


Not sure where you get we only work for an exlusive clientel. We may look that way from the way the company presents itself through it's image but we don't rely on an exclusive clientel. Look at the gallery of work which shows some of the jobs we have done and you can see a broad base of clientel.

Scheme? Maybe. I can see some calling it that. I certainly have no intententions of it being one. We are members of the BBB and everything we do has to pass muster with them, so far they have no problems with it, we also have no intentions of not fullfilling the obligations of the program. Like I said if I get burned once or twice by some bad apples, we're prepared to pay out to them if that is what ends up happening. I wouldn't call that a scheme, but some still might, which is okay.

Here is a link to a rough draft of the actual program. I've got to make a change to the wording about the check being lost and added to the final payment which makes no sense, it needs to say something about the customer is responsible for bank fees to stop payment or void it.


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## Mike Finley (Apr 28, 2004)

dougchips said:


> We use a price match guarantee as a closing tool. I am to lazy to copy paste it, so here is most of it from memory:
> 
> 1. Same brand of products. Same style of products.
> 2. The other company needs to of been in business for more than 5 years.
> ...


Yep, Doug, that's the same idea I have been using in putting together my version, I'm going to take it a little further and do a $500 guarantee. With the choice being for us to pay the $500 and bow out or match the price and deduct $500.00.


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## Second Look (Jan 13, 2007)

Mike Finley said:


> I've got to make one change to it, about the amount being added to the final payment if the check is lost, it needs to say "a stop payment will be made on the check and customer agrees to pay for any fees associated with stopping payment."



The $500 guarantee is a good idea, but the check is a gimmick. It gives the customer one more thing to keep track of and be responsible for (if they lose the check).


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## Teetorbilt (Feb 12, 2004)

Things have slowed down a bit on the lower end. On the upper end. We can start planning now and begin install in Sept. '08.

No crapola! Honest pay for honest work.


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## PressurePros (Jul 3, 2006)

Bingo, Dirtman is on point quite a bit there. Mike I know where you are going, you are using the statistics to your advantage. Most people won't pursue your rebate (guarantee), they will just feel warm and fuzzy _thinking_ they must be getting the best price. I think you may be on the edge of something that might work conceptually but the execution would have to be done correctly and even then I would like to see ten guys do this for a year and report back before I would ever consider it. It has too many things that can backfire.

Sometimes I make the best decisions when I put myself in the shoes of homeowner. I would see this as gimmick.. agressive sales. It wouldn't offend me but it certainly would not entice me to act either (this is your intention, right, to close more sales?). If you're selling $20K+ bathroom remodels I am going to assume your customers are semi educated people. You're sending a message of "I'm cheapest". I know thats not your intention but how else can one interpret "I'll beat any price or you get $500"? What if I thought you were the best guy for the job because I shop quality not price? You just put a thought into my head that did not have to be there. 

Is this guy quality or is he cheapest? It might me think twice about hiring you. 

I also understand your rationalization of thought in that when confronted you get another chance to sell and show them apples to orange. What you get is an opportunity to be argumentative. People RUN from confrontation. If I call you on the $500, I want to be paid, period. Thats the only way your offer has validity in a customers mind. You will spend more time going back and forth with a person arguing that Joe's plumbing is using inferior materials and thats why you don't have to fulfill your promise. Thats the point Dirt was making. Its lose/lose for even if you win the arguement and convince somebody why you don't have to pay the $500 you will lose the job.. 100% of the time. I'd call that a huge backfire.


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## Mike Finley (Apr 28, 2004)

dirt diggler said:


> Here's how I'd look at it if you were my contractor Mike:
> 
> _Ok, I'm paying you *$90,000 *for a kitchen/bath remodel
> 
> ...


First off, good points. If you are servicing only $900 clients or only $90,000 clients then what you are saying is very accurate. However what we need to keep in mind is if you are servicing 90K clientel and $900 clientel you need to tailer your sales presentations to the clientel you have in front of you. 

You aren't showing a 90K client a vanity from Home Depot right? 

Features and benefits... specifc to the client in front of you.

Good point though.


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## Mike Finley (Apr 28, 2004)

PressurePros said:


> Bingo, Dirtman is on point quite a bit there. Mike I know where you are going, you are using the statistics to your advantage. Most people won't pursue your rebate (guarantee), they will just feel warm and fuzzy _thinking_ they must be getting the best price. I think you may be on the edge of something that might work conceptually but the execution would have to be done correctly and even then I would like to see ten guys do this for a year and report back before I would ever consider it. It has too many things that can backfire.
> 
> Sometimes I make the best decisions when I put myself in the shoes of homeowner. I would see this as gimmick.. agressive sales. It wouldn't offend me but it certainly would not entice me to act either (this is your intention, right, to close more sales?). If you're selling $20K+ bathroom remodels I am going to assume your customers are semi educated people. You're sending a message of "I'm cheapest". I know thats not your intention but how else can one interpret "I'll beat any price or you get $500"? What if I thought you were the best guy for the job because I shop quality not price? You just put a thought into my head that did not have to be there.
> 
> ...


Actually I don't want to do anything using the rational nobody will take me up on it, so don't go down that path, it isn't correct.

Good thoughts too in your post, but -- keep in mind there is qualfication to who you will "beat" for lack of a better word. That is the biggest factor you are ignoring. Nobody is saying we are the cheapest, we are the cheapest!!! What we are saying is we respect every consumers right to expect *value*.

It isn't about beating any price it is about being the best value. A contractor operating out of a 1984 subaru with no insurance isn't even a qualified competitor to "beat". 

Like I said if a qualified competitor see Dougs post is beating us apples to apples, then once again - we have bigger problems internally than just this contract.


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## dirt diggler (May 14, 2006)

Mike Finley said:


> Dirt - I would answer- "yeah, maybe" based on that scenario.
> 
> What is missing is
> 
> ...






Point A - terms and conditions. They see this as fine print. They're going to read this fine print if they seriously want to pursue your offer. They will see a "catch" --- whether they say anything or not -- this WILL create some type of "tension."

Point B -  ok ... they never saw your value in the first place ... but they *still* signed the contract. DO NOT MESS WITH THIS!!!! THIS IS LIKE NOT USING THE PAPER WEIGHT THAT BANKS PROVIDE WHEN USING THE DRIVE THRU ON A WINDY DAY 

Point C - new guys proposal is apples to apples. And now you have bigger problems --- even though you're booked for the next 3-4 months. And you STILL are making more money than he is. Okay -- if there is a problem --- DEAL WITH THIS MATTER WHEN YOU RETURN TO THE OFFICE --- NOT SITTING AT THE KITCHEN TABLE WITH A NEWLY SIGNED CONTRACT

Point D - *WAIT A MINUTE!!! you mean you have to GIVE THEM THE $500 CHECK AND take the SAME job for $15K LESS?? or walk away??* (note: 15K, in case forgotten - was the hypothetical figure I used earlier)

Point E - right, I see what you mean here --- can't be sure until you try

Point F - you're also exactly right here - we do focus on small details and get hung up on them.




point I'm really trying to make Mike --- just from what I know of you --- if I ever move to Colorado and need my bathroom remodeled --- I honestly would call you. I would call you even knowing that you probably do charge more than 10 other guys I can get.

But I haven't talked with those other 10 guys. 

I still might talk with them ... but the whole time I'm talking to them --- they're going to need to give me a solid reason why I should use them versus you.

And nor their prices --- or any kind of incentive is going to do that.

That is having style without substance ...


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## Gordo (Feb 21, 2006)

Two ponds.

Pond one has small fish and dirty water.

Pond two has big fish and sparkling clean water.

Which pond do you want to fish?


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## dirt diggler (May 14, 2006)

Gordo said:


> Two ponds.
> 
> Pond one has small fish and dirty water.
> 
> ...


depends ...

are we drinking Pabst Blue Ribbon 


or 


Sprite???


:laughing: :laughing:


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## Gordo (Feb 21, 2006)

dirt diggler said:


> depends ...
> 
> are we drinking Pabst Blue Ribbon
> 
> ...


Yuenglings.:drink:


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## dirt diggler (May 14, 2006)

Gordo said:


> Yuenglings.:drink:


where's that vomit emoticon when you need it:laughing: :laughing: 


michelob ultra:thumbup:


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## PressurePros (Jul 3, 2006)

Here's the problem and its the last I'll say, I promise. You have to *sell* *value*. The moment you start putting dollar amounts to your plan you are *selling price*. Price and value while related are not the same things as you well know. You can kick and scream that I am missing the point but it is what it is. Value is honesty, integrity, commitment, positive experience given at FMV. Cost guarantees, no matter how you slice it, is a different beast. This whole thing may make perfect sense in your train of thought but my contention is you're not offering the right type of value. You say not to approach the topic of you infrequently needing to "pay out" but yet you post restrictions, limitations and caveats in your contract and schpiel that dicate that exact line of thinking. What am I missing? (rhetorical question)

Sure there are innovators of thought and innovation requires risk. Like I said I am assuming you wanted feedback and not validation. It sounds like you have your heart set on this. Other business owners have pointed out potential downfalls now all that is left to either run with it or don't. 

My final note (and this is gonna sound harsh): If this is what you are relying on to increase your closing ratio, you need to work on your sales presentation, closing and follow up. I say that as a colleague, I'm not judging you so don't let the emotion of that statement take you for a ride. How many customers do you honestly believe, with all other variables being even are going to jump on board with you based solely on the promise of $500 ? If you think a significant amount, then that validates my above statement. Does it set you apart? Yes, in my mind as a customer it would make me set you apart negatively. 

I do wish you success in whichever way you decide to go forward.


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## boman47k (Oct 13, 2006)

> C-Needs to have a state license.
> D-needs to have an established business location-no SWB's!
> E-needs to conduct criminal background checks on all of their staff.
> F-needs to conduct drug test on their installers


If these could be applied, I could go into a lot more than painting!

That being said, if I could amass the crews and maintaine the same qualifications!
I really never expected to see Mike make such a posting. But as has been said, what do I know? Seems to much time would be spent explaining the screwheads showing in shower install, etc..

Especially E and F. that would be golden.


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## john elliott (Oct 23, 2005)

I've been reading this thread with some considerable fascination. In some ways it's similar to the other thread about the 'scheme' for incentivising employees, inasmuch as Mike puts forward a fairly crazy idea, then everybody who tries to point out what is wrong with it, he argues with them until they get fed up of trying to make him see sense

$500? What kind of business is he in that that is any kind of significant amount?

John


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## realpurty2 (Aug 18, 2005)

I've thought on this one all day before posting. I can see pro's and con's of both concepts. Alot of the points made here are very valid Mike. 

I think your on the right path but if it were me, I'd change the way of going about it. 

On the $500 money back guarantee- 
I liked this on first thought, but the check idea to me is opening the door for too many headaches on your end to be worthwhile.
The accounting end of it would force you to debit any checks out to keep your balance accurate because cashed or not, when it's written, it's gone until it's back in your possession. Then crediting it back in at the end of the job.... not to mention multiple jobs going on at once. If you go with this plan as is, I'd definately recommend a seperate bank account instead of your main one. 
Also, go ahead and expect people to find something wrong just to get the $500 back. Cash motivates people to lie. When you put down the restrictions to qualifying for the refund, expect people to challenge you and possibly even become angry (thus losing potential referrals and good word of mouth) because you had to enforce the stipulations and deny the refund. Is it really worth the gamble? Let your good work speak for itself and you'll gain more than the guarantee will bring you in.

Maybe think of some other guarantee that is specific... such as If we do not complete the project above industry standards, we will pay you $500. Or If we fail to "insert something", we'll pay you. Just saying you'll pay them if they aren't satisfied is leaving alot of room for debate, which sadly for some, could even become a legal issue just to prove a point and get the money. 

The $500 if they can beat your price again needs more specifications so that you don't leave yourself open to any challenges that could be twisted against you. Of the two ideas, this would be the one I'd work on getting fine tuned and in place if it were me.


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## Mike Finley (Apr 28, 2004)

Johnny - buy Lang's book, "Rewarding and Challenging Employees: For Profits in Masonry". Read how he went from a laborer to an 8 million dollar a year masonary company, read how he went from 18% WC rates down to less then 1%, read how his productivity is the highest in the industry, read how he has some of the happiest employees in the industry, read how he has a waiting list of people wanting to work for his company. After reading it you're in for a shock because my _"fairly crazy ideas"_ about employee compensation _"schemes"_ are pretty much the same thing he outlines in his book and has based his success on. 

Just keep in mind that anything way different then what you know is always going to seem on the suface "crazy".


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## Mike Finley (Apr 28, 2004)

PressurePro - I thought about some stuff on the road this morning to and from an estimate it sounded pretty logical in my head at the time and I hope I can present it here clearly. 

Good or bad all this stuff is a single facet of "the sale" for a lack of a better word. We all get very focused on how this will blow up, how crazy and world shattering it could be. What I want to present and then you can comment on it is over time I've asked a lot of customers why they ended up hiring us? What they give is usually the *main *reason that *they *hired us.

I've been told:

Your website, you looked like you knew what you were doing...
How organized you are...
You seemed like the most honest guy we talked to...
We were referred to you by...
Your ideas were the best...
You showed up...(that was is pretty embarrassing if you think about it)
Your prices seemed reasonable...
My wife liked you the best...
We just feel confident you will do the best job...
You specialize in doing this...
You are a BBB member...
You are a NKBA member...

There are plenty more, but if you think about things as a business owner, a lot of people here are fixating on one issue of all this, but if you consider what would happen if you did the same thing and applied that to how you do business you would be in trouble. 

What if I looked at all the reasons why customers say they purchased our services and limited everything I do to maximize one particular response as our key selling point? What I would end up with is losing all the other customers who picked us for reasons other than that particular one. 

On the other hand if I focus on having a broad base of reasons for a customer to choose us I end up widening my marketability. If I stopped showing up on time, people who that matters too are eliminated, however if I add it to our benefits then I include people who that matters to in our potential base of buyers.

Having a 500 guarantee or this or that doesn't necessarily eliminate all the other reasons a customer ends up buying from us, what it does logically to me is broadens the base of reasons... it isn't the only reason to choose us, it is simply one ingredient, and it opens up another base of customers to you. 

The logic follows by a lot of examples given here, like dirt's about a 90K customer. That customer is going to hopefully be sold on you for their particular reasons which probably aren't going to be the same as the $900 customers. They might be sold on you because you have the selection of options of a wide range of materials that is important to them. While the $900 customer might be sold on you simply because you showed up.

Make any sense? It sounded better in the truck listen to Glen Beck.:laughing:

Anyways, everyone has given me a lot to think about and I *am *going to think about it what everyone has contributed. I will probably be back with round 2 of a variation on all this.


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## George Z (Dec 23, 2004)

Price has nothing to do with it.
What they are getting for it, does.

Any time you can bring that up, you win.

I think it's a good idea.


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## Brian (Jun 9, 2004)

Mike,

I think you have another great idea. Certainly there are some details you need to be careful of, but the basic concept is great.

Brian Phillips


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## dougchips (Apr 23, 2006)

boman47k said:


> If these could be applied, I could go into a lot more than painting!
> 
> That being said, if I could amass the crews and maintaine the same qualifications!
> I really never expected to see Mike make such a posting. But as has been said, what do I know? Seems to much time would be spent explaining the screwheads showing in shower install, etc..
> ...


The criminal backgrounds checks cost me around $35.00 a year. Once I mention them to customers and why they are important they become a good selling point. It shows that I care about their assets and who I have working on their project. The drug test are not really winning customers over and I have a hard time selling the program as it was designed--"We drug test our crews and will not have drug users on your project." At least they are cheap, about $15 each. So for $50 a year I am trying to say that we will not steal all of your stuff while high as hell.

The best way to find out how well a price match guarantee works is to ask people that use it. I was scared of using it until I had several people tell how how valuable of a tool it is.


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## DamionR (Jan 19, 2007)

Personally... I think using price as a closing tool is OK, but it's not the best idea. Couple reasons:

1) You're encouraging them to delay in making a decision, and to get other prices. Of course, there's tons of debate on this forum about the "three estimates" concept. Regardless of how you feel about this... why give them a reason to put you off?

2) You're making price the main factor for decision. Always a wrong idea. There will always be someone who can undercut you.


Of course, you have logic behind it. It gets them comingback to you, which gives you the oppurtunity to explain why the competition is cheaper, and gives you another closing oppurtunity. However, I would NOT make it a major factor. Write it on the agreement - make a brief mention of it.. and move on to getting the business.


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## Charles Bagley (Feb 7, 2007)

Price matching is not the way to go. What if you lower your price and they weigh their options for a day. 9 out of 10 times your competition will lower their already low price to match your new price. All this has done is muddy the water and one of you will be expected to do quality work at a ridiculously low price.

CB


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## dougchips (Apr 23, 2006)

netprofitsinc said:


> Personally... I think using price as a closing tool is OK, but it's not the best idea. Couple reasons:
> 
> 1) You're encouraging them to delay in making a decision, and to get other prices. Of course, there's tons of debate on this forum about the "three estimates" concept. Regardless of how you feel about this... why give them a reason to put you off?
> 
> ...


The only time we mention it is when we can not overcome the we need 3 estimates. If they like my product and my company and my special offer then they can "lock in the deal" that night and if they need a week to get their other estimates then fine. Generally they do not get other estimates. It is a closing tool and nothing more. Net, if you look at my original post on page #1, the list of requirements have nothing to do with price, rather, same quality merchandise, general company requirements and installer requirements.


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## dougchips (Apr 23, 2006)

Charles Bagley said:


> Price matching is not the way to go. What if you lower your price and they weigh their options for a day. 9 out of 10 times your competition will lower their already low price to match your new price. All this has done is muddy the water and one of you will be expected to do quality work at a ridiculously low price.
> 
> CB


If done correctly you will not have to match prices. If your company offers more than the other companies they can not compete with you. If your company offers the same as everyone else then the low price wins. What do you offer that your competitors can not touch?


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## Standstrong (Apr 18, 2006)

It's genius, everyone else is just jealous that they didn't think of it. :thumbup: 

Hey, a well (lawyer) written contract will get you out of anything. 

If it gets you in front of more contracts (which it will) then who cares you'll have the thing so well written you'll have their heads spinning and walk with 100's of contracts. :thumbup: 

It's guerilla marketing, and it's beautiful. Laugh the whole way to the bank.:laughing: 

Seriously though, isn't most of your clientelle referals, on some level? 
Do you really do that much NEW customer work?:blink: 

GREAT PLAN. TAKE THEM ALL TO THE BANK.:clap: :notworthy


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## dirt diggler (May 14, 2006)

Standstrong said:


> It's genius, everyone else is just jealous that they didn't think of it. :thumbup:
> 
> Hey, a well (lawyer) written contract will get you out of anything.
> 
> ...


this really speaks volumes ...


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## DamionR (Jan 19, 2007)

Doug....

have you ever tried the "give them the three estimates" approach? Similar to how Geico and Progressive pitch that you can see the competitors price for insurance right beside their own?

In my "agressive" sales training.. I've done well with this. I show the customer the options they have... and give them the estimate for what that should cost. More importantly, I get them to tell me they do not want the other options, regardless of the price. That way, when they say they want estimates, you can refer back to the notes, and explain how they already told you they did not want that option regardless of the price.

You can use this a couple different ways. If you have a unique product/service - it's obviously very easy to kill competition. If not, you can tell people who the only other 2 companies worth dealing with are... show the con's of their offering, and show the price they will charge for the same service.

Just an idea...


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## PressurePros (Jul 3, 2006)

netprofitsinc said:


> You can use this a couple different ways. If you have a unique product/service - it's obviously very easy to kill competition. If not, you can tell people who the only other 2 companies worth dealing with are... show the con's of their offering, and show the price they will charge for the same service.
> 
> Just an idea...


Net, and if you are the highest by 150%-200% what can you do to counteract the response? Just playing devil's advocate here and wondering if this is something I could adapt.


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## DamionR (Jan 19, 2007)

Great question - and I can give you answers from experience (look for my post explaining how a product I sold was 50-150% more than companies offering the EXACT same things)

Unless you differentiate yourself, and the product/service you provide - you're going to have a hard time selling at such a higher price.

The best thing to do first is a pre-mailer.. prior to any appointment you have with the customer. This can TRULY set you apart (how many of your competitors do this... let alone do it well).

Here's what the company I work with supplies as a premailer:

company bio/overview/letter from the owner
bio (including a photo) of the estimator coming out
glossy booklet explaining the problems they fix, why the problems occur, why to fix the problems, what the options are, and why to use our company
Another insert of company highlights/benefits
a DVD on products the company offers
a list of testimonials in their area
Sounds like a lot, but it really isn't. Everythign except for the last part is pre-packaged. All they do in the office is get he list of references in the prospects area, insert it in the envelope, slap on the mailing label and it's done.


What else do they do to set themselves apart, and charge premium prices?


Laptop presentation - over just having flyers
Laptop prints out proposal with standardized pricing for services. That way the customer knows they get the same price as everyone else, and they are not "this month's boat payment"
Patented products no one else in their area can offer, along with offering the same products their competition offers if the customer "really" wants it for some reason (mostly used as a sales tool)
Professional people that show up to the customers home - over some scruffy contractor pulling up in a work truck.
Etc, etc. - things that no-one else does. They set themselves apart.

THink about what you can do to create the same effect.


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## dougchips (Apr 23, 2006)

netprofitsinc said:


> Doug....
> 
> have you ever tried the "give them the three estimates" approach? Similar to how Geico and Progressive pitch that you can see the competitors price for insurance right beside their own?
> 
> ...


I have quotes from 6 companies that offer the same product as me with a higher price than mine. I also have quotes with similar products at a higher price than mine. Our presentation book (now on laptop) has these for customers to see. "We need to get more quotes"---me- "I'll save you some time, here are six quotes for a job that is similar to yours".


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## DamionR (Jan 19, 2007)

tada


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## dougchips (Apr 23, 2006)

Standstrong said:


> It's genius, everyone else is just jealous that they didn't think of it. :thumbup:
> 
> Hey, a well (lawyer) written contract will get you out of anything.
> 
> ...


Most of our business is windows and doors. We run between 4-9 crews and it takes a ton of jobs to keep everyone busy. Referals are great however they can not generate the amount of work that we need.


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## PressurePros (Jul 3, 2006)

Net, thank you for you response. I love this stuff. I do all the above you mentioned and in fact teach other contractors how to do it. My question was more directly about applying your idea of giving the customer three quotes.


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## Dave Mac (Jan 30, 2006)

what type of lap top and portable printer do you guys like???

im in the market

thanks
dave mac


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## copusbuilder (Nov 8, 2005)

john elliott said:


> I've been reading this thread with some considerable fascination. In some ways it's similar to the other thread about the 'scheme' for incentivising employees, inasmuch as Mike puts forward a fairly crazy idea, then everybody who tries to point out what is wrong with it, he argues with them until they get fed up of trying to make him see sense
> 
> $500? What kind of business is he in that that is any kind of significant amount?
> 
> John


I know my customers would laugh him out the door quicker than they normally would:sad: 
I sometimes wonder what is real and what is in Mikes head 

What amazes me the most about this post is how most everyone was dead set against it.Through Mike not backing down and in true "salesman" fashion ignoring the negativity and brazing ahead has actually got people embracing this idea!


I really think Mike is Mary Canasta from Erie Pennslyvania. A crippled 70 year old woman confined to a wheelchair:whistling


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## DamionR (Jan 19, 2007)

Hey Pressure... were you asking how to respond when you do give them the competitors bids, and you're 150-200% higher?


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## DamionR (Jan 19, 2007)

I think any type of offer to ask for the business is better than just writing out a proposal and waiting for them to come pouring in the door. Even on the best referrals from your best jobs... you still have to ask for the business.


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## PressurePros (Jul 3, 2006)

netprofitsinc said:


> Hey Pressure... were you asking how to respond when you do give them the competitors bids, and you're 150-200% higher?


exactly.


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## DamionR (Jan 19, 2007)

Here's a couple thoughts...


1) Honestly Mr Prospect.. do you really think you'll get the quality you deserve at a pricetag like that?

2) Hmmm, seems awfully strange there is such a drastic difference in pricing. Let's look at what they've provided you and try to find out why.

3) Well, they know what they're worth

4) You know mr prospect, whenever we make a decision to invest into our home, we all want the same basic things. We want the best product, the best service, and the best price. I also know that we can never have all three at the same time. So you tell me, which one are you willing to give up - the best product, the best service, or the best price?


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## dougchips (Apr 23, 2006)

netprofitsinc said:


> Here's a couple thoughts...
> 
> 
> 1) Honestly Mr Prospect.. do you really think you'll get the quality you deserve at a pricetag like that?
> ...


Well said.


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## tkle (Apr 15, 2006)

I would suspect that you were charging the extra 500 even if you weren't,then try to talk the price down.If I wasn't satisfied I'd probably want more than the 500.


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## VP/Operations (Feb 9, 2007)

*Be careful...*

I have been reading this site for months now, and can see from your prior posts that you have a profound interest in giving your clients the best that the industry has to offer...KUDOS to you; not many out there with your business acumen and persona...However...

I personally feel from what I have read that you are setting yourself up for failure with this "gimmicky" money back program. First of all, the word "satisfied" is extremely subjective. In other words, who are you or anyone else, for that matter, to say if someone is ever "satisfied"? They could run you ragged for the most idiotic things. To give you an idea...

We do siding, windows, roofing and leaf-free gutter, and it is more than once that we have had a customer tell us that they are not paying us what they owe us on a gutter job, because they haven't seen the gutter work in the rain yet, or better yet...how about holding our money beacause there are "waterspots" on the gutter trough...how stupid can one be??? It does say in our contract that payment in full is due at completion. When we argue, all they do is make up some other picayune excuse not to pay us on time. You have to realize what kind of people are out there, and prepare for the worst....as sad as it is.

I personally think that it would be better if you implemented an aggressive back-end referral program that rewards a customer who sends you another customer that you sell a $500 referral bonus. This way, you are taking care of customers that are taking care of you. This way, you can't get screwed by the utter stupidity that is out there. This method takes out all of the subjectivity out of it...

I hope this helps...

John


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## Rich Wozny (Aug 18, 2005)

Sounds like a used car salesman technique...


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