Real Estate

6 miracle closure techniques for struggling contractors: change your focus or go out of business

It is very difficult for home service contractors to sell to homeowners these days. If you are a builder, home renovator, plumber, heating and air conditioning contractor, pest control company, landscaper, or selling to homeowners, you are probably struggling with your sales. It is time to change your approach with your clients or you will go out of business.

There are many types of customers, but the most classic might be “We are getting estimates.” client. When requesting a quote, they like to make sure that whoever makes the appointment knows that they are “just beginning the process” of getting the quotes.

They mention a bit about the research they have already done. They could even give the model numbers they are looking for or talk about the website they used to bring them to your business.

It has been my experience with husband and wife households that the man makes this initial call most of the time. Don’t be surprised when the wife calls with the same approach. Make the appointment with her and do not make the tragic mistake of suggesting that your husband be present for the appointment, unless she suggests it.

Sometimes our male egos with the lessons learned from our parents during a different generation told us that “the man of the house” makes the decisions about these kinds of things. This couldn’t be further from the truth in most homes today.

As I learned from a very knowledgeable businesswoman, a woman has control over her man in ways you can’t even imagine. In many calls to your business, there may not even be a man or husband in the home.

Making no assumptions or generalizations during your first customer contact is the best first approach.

You have now booked the appointment and it is the day of the estimate or client visit. A researcher obtaining estimates informs you in what order it is on his list of estimates. For many years, you would handle this estimate similar to many other salespeople in this industry.

If you weren’t the last person to give an estimate, you would do a two-part closing. You would spend the first visit gathering information and taking action and job-related information. Then I would call in a few days to book the next appointment, at which point I would try to position myself as the last quote to be given.

The only flaw in this method is that every other company on the client’s estimate list would try to do the same. As a result, the customer would be frustrated when he couldn’t complete the estimates right away. Many times, on my second visit, the client still did not have all of their estimates. My closing rate on clients like this used to be less than 20%.

Then I discovered my “miracle closure technique”.

My technical closure is quite simple. These are 6 easy steps that your business should follow with each customer.

1. Meet face to face

The first highly effective approach to closing the client who gets a quote is to go and meet with whoever has booked the appointment at their home. Spend as much time as you need on that first appointment gathering information and taking action.

2. Tell success stories

The second step involves your time and attention to your potential customer. Sit at the kitchen table, order a drink while you calculate the cost of the job. As you sit with the client, share stories about other situations and homes that you have seen that were similar to your home. This will begin to build confidence and a comfort level.

3. Gather information

Take the time to gather all the information and steps necessary to give them a budget.

4. Show your credibility book

You or your sales consultants should always carry a credibility book to represent your business. It’s a folder that should contain excellent articles about the company, testimonial letters, a certificate of insurance, and customer satisfaction surveys from other customers. Present this book to your clients during their visit to your home.

5. Provide an estimate

These clients, who are used to scheduling second appointments with other companies, will be foolish that you can sit down with them and in an hour of their time, settle the job and give them a budget.

In my experience, I hear things like, “Every other company that came to give a quote would have to go back to their office to figure it out.” I reply that I prefer to sit down and do this to them right away. I tell them that I know how frustrating this process can be and that I prefer to make it easier for them.

6. Follow-up

Using these techniques consistently, many clients make their purchasing decisions for me in the first session!

For clients who don’t make decisions for you right away, write your cell phone number at the top of the proposal and tell them to call you if they need help making a decision along the way.

Emphasize that even if they are not sure of their decision, they can still call if they have questions, that you will help them in any way you can.

Before leaving home, ask, “When do you think you will be in a position to make a decision about this?” Whatever the response from customers, ask them if it will be okay for you to call them on the date they mentioned, to see where they stand with their decision.

Now this is very important:

Look them in the eye, shake their hands and ask, “Are you sure this is enough time, because I really don’t want to be a plague?”

Then you need to call the customer again on the date and time that you agreed to.

These follow-up phone calls for me usually start with an apology from the client, who then asks me when we can get the job done.

Using this approach, my close rate skyrocketed, going from less than 20% to more than 60%!

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