Every service writer wants to do a great job and develop customer relationships, so they fear the question, “can you do a better price?”…
Let’s breakdown what this question really means, either:
- The customer can’t afford your solution
- The customer doesn’t see value for the money and want a better deal
- The customer has a psychological need to win by negotiating
Thinking about this on a deeper level
- The individual’s affordability is not YOUR responsibility. If what you offer is of value and you are asking a fair price, that others are prepared to pay, it is a moral issue if you sell to someone at a lower price just because they can’t afford it.
- If you’re offering a valuable service, you have a responsibility to stay in business and deliver that value – that means you must get the maximum fair price for what you do. Revenues keep your shop in business.
- The majority of your shops efforts and resources should be put towards the best clients who will make the greatest use of your value – these clients usually aren’t the ones asking you to do a better price, they’re more interest in value.
When a customer asks you if you can “do better on price”, what if you said “I know the value of our exceptional technicians and the price we are asking is really fair. Your question is also important, do you mind me asking, is this about affordability or is it that it doesn’t make sense to you yet from a return on investment perspective?”
This question isn’t something they’ll be expecting and they’ll have to think a little more to engage in further conversation with you.
The point is, many salespeople are fearful of losing the sale that they don’t ask any clarifying questions when customer challenge the price.
At least having the customer discuss the real issue gives the service writer the opportunity to find a solution:
- Such as offering available financing if cash is tight at the moment but they have to travel out of town in winter conditions next week or
- The price point is too high for their comfort level/affordability; this gives the service writer the option to investigate more affordable choices or recommendations
Ultimately your team must protect the shops profit margins, but they need the figurative “tools” to do this; and this is a matter of communication on a regular basis to share these approaches.
Was this helpful? Do you discuss sales techniques and handling objections with your service writers?
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