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Stop Making Pricing Assumptions

dollars

By Allan Ferguson

I recently was speaking with a fellow service company owner about an interesting sales issue with some of his technicians that may be more widespread than you may think.

He had finished attending his latest ride-alongs with some of his technicians-something I highly recommend all levels of a service business to do- and identified possible presumptions technicians were making of the customer’s potential spending behaviour.

You must train your technicians to follow a system offering different service options and go through every step of an inspection checklist every time.

It’s not up to the technician to make assumptions about whether a customer is willing to spend X amount of dollars or if their house is brand new and they’re not going to worry about a small repair.

It’s also not up to the technician to reduce pricing structures based on a customer saying “I’ve only got a $500 budget and I cannot go a cent over.”

This is why a customer is presented with options!

By following every phase of the checklist you provide the customer with a thoroughly-checked list of service options and they can make decisions about which ones to proceed with based on their circumstances.

I was told of one technician saying how he was inspecting a near-brand new house, discovered their drains needed significant work and was feeling hesitant over whether customers were wanting to pay even more money having just spent so much on the property already.

It’s like automatically presuming someone who has bought a $100,000 Mercedes sports car isn’t then going to pay for it to be serviced!

Similarly technicians heading out focused only on big ticket items may overlook offering recommendations for smaller items like leaking taps or water pressure.

You cannot allow for technicians to hold themselves back or have doubt in their processes based on any assumptions.

Technicians must be trained so they understand it’s their responsibility to present every option available for a customer, and indeed to allow the customer to feel comfortable saying “no” to options as well.

Some technicians may be surprised at how often a customer proceeds with higher-costing options if they’re confident they will be provided with quality solutions and feel they trust the technician.

Spend the time to ride-along with your technicians, understand their thought process and allow them to give the customers varying options.

Your inspection checklist and pricing structure can be reviewed as often as you desire, and providing technicians with frequent training and time to become fully confident in them will aid the sales process immeasurably.

Allan Ferguson is the CEO of Service Professionals Australia.

Have you listened to our podcast series Pipeline To Profitability yet on iTunes, Soundcloud, Stitcher and our website? Featuring industry leaders and Allan’s own insights, Pipeline To Profitability is loaded with value for your business.

Please send your feedback and questions to admin@serviceprofessionals.com.au

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