Previously, we discussed the importance of building trust, which hinges on showing your prospect that you truly understand them. This is more crucial than boasting about your projects or experience. By focusing on their needs, wants, and desires, you lay a foundation for presenting your price-value offer effectively.

If your prospect feels understood, you can then present your offer with three key elements in mind:

1. Be prepared for negotiation: Leave room to negotiate. Set your initial price higher than the minimum you’re willing to accept.
2. Create urgency: Tie the offer to a specific timeframe. An open-ended timeframe implies you might not be busy and invites further negotiation. For instance, one contractor confidently dictated the project window to a prospect, saying, “I can only do so many projects a year. Based on what you know of me, the impeccable work I do, my warranty behind the work I do, if you want one of my projects, then this is the window I have to do your project.” This confidence eliminated the need for further negotiation and positioned him above competitors.
3. Show confidence: Demonstrating confidence can set you apart. The same contractor’s assured approach in presenting the project timeline showcased his high demand and quality work, which discouraged the prospect from negotiating the price further.

Establishing trust and value first is essential. When a prospect plans to negotiate, starting with a fair price (one you can live with) is not ideal. Instead, start with a price “above the dance floor.” Determine this based on how the prospect learned about you, your past work, and what sparked their interest.

Ask the prospect what sparked their desire for the project. This can lead to an expanded scope or additional projects. Understanding their wants and needs deeply can increase the project’s value. For example, when you ask what initiated their interest, they might share personal stories or specific needs, which helps you understand their priorities better. During these conversations, prospects often become more excited about the project, which can lead to them adding more to the scope or even requesting simultaneous projects.

The Power of Silence

After presenting your price, remain silent. Silence allows you to observe body language and listen for verbal cues. These cues can indicate agreement, uncertainty, or additional questions. During this period, your silence is powerful. For instance, watch for body language like eye contact between a couple or their hand gestures. Their non-verbal communication can reveal their thoughts and feelings about your offer. Even if you sense uncertainty, maintain your silence.

Prospect hesitation signals they want to continue negotiating but haven’t chosen you yet. Common mistakes include lowering your price without justification or receiving anything in return. This transforms you from a professional contractor into a used-car salesperson.

Instead of merely lowering your price, shift the focus to qualifying the prospect for a lower price. For example, suggest they become a preferred referral customer, which justifies a lower price because you’d spend less on advertising. You might say, “If Mr. and Mrs. Smith, if you were to qualify to become one of my preferred referral customers in your neighborhood, I can justify lowering your price because I would be spending less on my other advertising processes. Again, that is if you could qualify.”

This approach places the responsibility on the prospect and leads them to ask, “How can I qualify as a referral customer?” You regain control of the negotiation. You can make the qualification process straightforward, such as allowing a business sign in front of their home or agreeing to provide a Google review or a Letter of Recommendation. These actions help justify the price reduction and maintain your professional integrity.

Other negotiation tools include:

• Displaying a business sign at their home.
• Requesting a Google review or Letter of Recommendation.
• Recording a brief satisfaction video where the customer shares their positive experience.

Hold onto these tools, as you may need multiple justifications for adjusting your price during negotiations.

Next Steps

In our next discussion, we will cover agreements and installations in Stage 4, emphasizing that “everything you do or don’t do” is critical to the WOW factor in your customer relationship.