6 Miracle Closing Techniques for Struggling Contractors: Change Your Approach or Go Out of Business
Home service contractors find it very difficult to sell to homeowners these days. If you’re a builder, home renovator, plumber, heating and air conditioning contractor, pest control company, landscaper, or selling to homeowners, you’re probably struggling with your sales. It’s time to change your approach with your clients or you’re going out of business.
There are many types of clients, but the most classic could be the “We are receiving estimates”. client. When they call for an estimate, they like to make sure the person making the appointment knows that they are “just beginning the process” of getting an estimate.
They mention a bit about the research they’ve already done. They might even give you the model numbers they’re looking for or talk about the website they used to bring them to your company.
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. He makes her date with her and don’t make the tragic mistake of suggesting that her husband be there for the date, unless she suggests it.
Sometimes our male egos with lessons learned from our fathers during a different generation told us that “the man of the house” calls the shots on these sorts of things. This couldn’t be further from the truth in most homes today.
As I learned from a very knowledgeable business woman, a woman has control over her man in ways she can’t even imagine. On many calls to her company, there may not even be a man or husband in the home.
Not making assumptions or generalizations during your first contact with the customer is the best first approach.
You have already booked the appointment and it is the day of the budget or client visit. A researcher who obtains estimates tells you what order it is in on his list of estimates. For many years, I would handle this estimate similarly to many other vendors in this industry.
If I wasn’t the last person to give an estimate, I’d do a two-part closing. You would spend the first visit gathering information and taking measurements and information related to the job. I would then 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 with this method is that every other company on the client’s quote list would try to do the same thing. As a result, the client would be frustrated when they couldn’t complete the estimates right away. Many times on my second visit, the client still didn’t have all of his quotes. My closing rate on clients like this was typically less than 20%.
Then I discovered my “miracle closing technique”.
My closing technique is quite simple. It’s about 6 simple steps that your company must follow with each client.
1. Meet face to face
The first and most effective method of closing the deal with the client requesting a quote is to go and meet the person who has booked the appointment at their home. Spend as much time as you need on that first date gathering information and taking action.
2. Tell success stories
The second step involves the time and attention you give your prospect. Sit at her kitchen table, order something to drink while you calculate the cost of the job. As you sit with the client, tell stories about other situations and houses you have seen that are similar to your house. This will begin to establish trust and a comfort level.
3. Gather information
Give yourself time to collect all the information and measurements necessary to be able to give them a quote.
4. Show your credibility book
You or your sales consultants should always carry a book of credibility to represent your business. It’s a folder that should contain great articles about the company, testimonial letters, a certificate of insurance, and customer satisfaction surveys from other customers. Give this book to your clients during their visit to your home.
5. Provide an estimate
These clients, who are used to booking second appointments with other companies, will be amazed that you can sit down with them and, in an hour of their time, figure out the job and give them a quote.
In my experience, I hear things like, “Every other company that came in to give an estimate would have to go back to their office to figure it all out.” I reply that I would rather sit down and do this for them right away. I tell them that I know how frustrating this process can be and that I’d rather make it easier for them.
6. Tracking
Using these techniques consistently, many clients make their purchase 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 unsure of their decision, they can still call with questions, and that you will help them in any way you can.
Before you leave the house, ask, “When do you think you’ll be able to make a decision on this?” Whatever the customers’ response, ask if it’s okay for you to call them on the date they mentioned, to see where they are with their decision.
Now this is very important:
Look him in the eye, shake his hand, and ask, “Are you sure this is enough time, because I really don’t want to be a pest?”
Then you need to call the customer on the date and time you agreed on!
These follow-up phone calls to 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 under 20% to over 60%!
