Frequently I hear people say, we are the best in the industry, we provide the best value, but we keep on getting beaten on price when we are asked to quote.
Many people do just look at the price and assume that the cheapest price represents the best deal. We then try to “justify” the higher price and they then feel like they are being sold to!
What would happen for you and your business if you could flip that around?
Imagine having a potential client fully understand why you are more expensive and be in a position to better understand the value you deliver and make an informed decision.
Typically, what happens when it comes to submitting a quote in a competitive situation is, most businesses only submit a quote which has only one option. Being ethical you factor in everything that is required to do a good job. Your competitors on the other hand reduce the specifications or service standards and provide a cheaper quote and win the job. Your competitors make back their money on variations or by reducing their costs by supplying inferior quality products.
My suggestion is that you submit a quote with at least two options. The first option is your standard service for your standard price – a fair deal. The second option is a scaled back service for a lower price. Use this lower price to explain to the potential client that you could do the job cheaper, but which services will be excluded and/or the lower quality products. Explain to your potential client that this is what some of your competitors will do, and then hit them up with variations later which will cost them more money!
Think of yourself as a trusted advisor helping your new potential client understand the tricks of your industry. This will build rapport, trust and result in more sales.
Imagine what your potential client will think when your competitor does exactly what you said, they submit a cut-down quote. You’ll not only win the job, you’ll also win an advocate who recommends you to their friends as a trustworthy operator.
Remember people buy from people they know, like and trust!