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Quick Tips for Contractors #8 – Do a Strip Tease

Today I am doing a Quick Tip since yesterday’s post was a bit long, and tomorrow’s post is going to be a long one too. So let’s say a full kitchen remodel costs $25,000 in your market, but you haven’t closed a deal like that in a year. Why not offer a stripped-down, entry-level version?

I see companies all the time doing “New Kitchen $2999” or “Finished Basements Only $9999” and I love those promotions.

Do you know why?

Because while you might say Darren, I would never do a kitchen for $2999 or a basement for $9999, I would say to you that I bet those companies don’t wind up doing them for those prices either!

It is a foot in the door

You can’t come to the party if you aren’t invited. So offer to bring the chips and dip while someone else brings the steak. After you get there, then you can up sell. If you didn’t get the analogy, getting your foot in the door with a stripped down product offering might be just what you need to close bigger jobs. Now I am going to get some chips and dip, I’m hungry, have a good day!

6 responses to “Quick Tips for Contractors #8 – Do a Strip Tease”

  1. Shaun McLane Avatar
    Shaun McLane

    Free Pool Service. Absolutely Free!!! You Pay Nothing for Service! **

    **free pool service only available with $90/month travel charge

    (and yes, I realize that wasn’t the point) 😉

    1. Darren Avatar

      Good, I was hoping that came through in the post…it was late! But to your point, there are two rules of thumb:

      For commodity-based services like say pool cleaning, having many different price points and service levels helps wedge clients in that might otherwise not become clients. And for the bigger job – remodeling, windows, roofing whatever…giving the client 2 or 3 proposals at different price points (and service levels) not only improves your chances of them picking one of your 2 or 3 bids over the others who submit one, but it also shows that you have the consumer’s best interest in mind by allowing THEM to chose what they think will work for them…within the scope of work of course.

  2. Tess Wittler Avatar
    Tess Wittler

    To add onto Darren’s comment, most consumers, when given the choice, will pick the middle option. So give them three options … they will pick #2 most of the time, and make sure you are comfy with the pricing of option #2.

    And as a consumer who just got an outrageous bid on a job, it would have been nice if this contractor would have provided options from which to choose. I didn’t want the Cadillac when the Yugo would have worked but I would have probably opted for the basic-model Ford.

    1. Darren Avatar

      That’s funny, I just had that same conversation a week or so ago with Chris when we were talking about his stuff. If you WANT them to take a particular package, make that one the middle one!

    2. shaun mclane Avatar
      shaun mclane

      Coming from a sales background, I can safely say the plan B close is solid, but VERY old school. The newer model is to provide 4 options: Yugo, used Honda, brand new Honda with GPS, and the Cadillac. On top of those options, pad the price slightly.

      Doing this, your client has more than one “middle” option, making them feel like they actually have a choice, plus, by padding the price, you can drop it down to the actual price after the client tries to “strike a deal.” The client walks away thinking they’ve won by talking you down, and you smile knowing you got your going rate.

      1. Darren Avatar

        I think that is what Tess and I are saying. If you have 3 price points and want the consumer to take the high one, add another layer on top of that one and make it the middle option. I know it is old school, but that is how people buy.