Scripts for Dealing with Low-Priced Competitors

If you survived the recession, you should congratulate yourself. Plenty of kitchen and bath firms did not.

And here we are in 2011, supposedly in an emerging recovery, yet closing jobs is still very difficult. So, what can we do to enable our sales designers to be more effective? How can we possibly get our fair share of jobs when prospects tell us that five to six of our competitors are 30-50% below our price?

Of course, the “crazies” always come out during bad economic times. These are folks who love the hunt, and will only take action if they smell a real deal. Don’t waste your time with them. Instead, market the value of your company so you attract better quality leads.

The ‘FUD’ Factor

It’s been well-documented that the most powerful human emotion is fear. This is known as the ‘FUD’ Factor – standing for Fear, Uncertainty and Doubt.

Now I would never suggest that you apply the FUD Factor in your kitchen/bath design practice. You must never, ever trash the competition – it will hurt you and haunt your firm. But you cannot be so timid as to shy away from wielding this very effective weapon.

The right way to implement the FUD Factor with qualified prospects is from an educational context. I have always advocated positioning yourself as your area’s foremost information resource on kitchens and baths. The use of Storyboards, Cabinet Comparison Displays, Consumer Seminars, Consumer Booklets and Interactive Budget Analyses all contribute immensely to establishing this position.

If you’ve done a good job of informing your prospect of the right way to buy a kitchen or bath, weighing the pros and cons of one design concept, product or service with them versus another, no doubt they see you as a consultant.

That’s a great position to earn! It can become your platform to perform a “civic duty” of giving advice when a prospect says they’re going to do business with a competitor who is 40% lower than you in price. When you’re perceived as a trustworthy consultant, consumers are more likely to accept your objective comments as truths.

Marketing experts agree that it’s virtually impossible to differentiate the quality of a service. The only way a service can be differentiated is through its delivery...or presentation to the prospect.

Few salespeople have the talent to pull off a great explanation on the spot of why their kitchen may be 40% more than competitors. Then again, even talented actors like Meryl Streep need to rehearse their roles many times to win over the audience. Why should it be any different for sales designers trying to close a kitchen or bath project? That’s why owners and sales managers should develop scripts to deal professionally with these kinds of difficult scenarios, and then make certain that their “actors” rehearse their scenes to have the greatest chance of securing the desired outcome.

While you’ll want to tailor these for your own firm, what follows are some suggested scripts.

Script #1: Prospect Received a Price 50% Lower Than Yours

“David, please beware of the low-ball contractors that are operating in our marketplace today because so many people have lost jobs with the decline in new home building.

“Look, doing a kitchen remodel is like having open heart surgery. You want the best surgeon available because you may not have a second chance! It’s not uncommon for some contractors to deliberately give out a low bid. Then when the tear-out has been completed, and the customer is most vulnerable, they come up with high-priced change orders. Is that a risk that you want to take?”

Script #2: When Competitor Lowers Price by 25% to Get the Job

“So you’re saying, Mr. Dobson, that this company will drop its price 25% if you sign their agreement by Saturday? Look, we have worked together for weeks on your project, and I would love to have your business. But we are in no position to match that reduction. I know nothing about the financial health of the company you are considering, but I would suggest you ask a lot of questions before you make a commitment…even for an offer as enticing as the one you describe.