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Selling More than Price

Selling beyond price starts with making the value of your proposal clear.

Give the customer a clear way to compare the work behind the price. Explain the relevant details of your offer instead of relying on a low total to speak for itself.

Explain the scope, workmanship, communication and follow-through included in your proposal. Use relevant examples of work you can deliver, and ask which factors matter most in the customer’s decision.

Explain value before comparing prices

Customers demand and expect more than a cheap price today.  And most contractors and subcontractors are proud of their quality work, reputation, and expertise and customer service. But, if your potential customer isn’t aware of the added value you offer, he or she can only evaluate your bid/estimate/proposal based on low price. Your written bid looks very unconvincing stacked up against five or 10 other bidders. The only differentiating factors are the prices, inclusions, and exclusions. Is that the only factors you want your company to be judged on?

What you can use to sell more than price:

  • Written marketing and sales plans, provide direction.
  • Pro-active customer relationship follow-up programs.
  • Consistent monthly mailings to target markets.
  • Consistent customer reminders of project niche expertise and specialties.
  • Sales training for all estimators, project managers, and salespeople.
  • A systematic referral networking system in place.
  • Key managers are very active in their industry and community.
  • Ask how the customer’s purchasing process handles questions and meetings before submitting your proposal.
  • Always ask what the most important factor in awarding the job is.

If you want to sell more than price and improve profit margins, you’ve got to offer more than a low price on a piece of paper. You must convince customers you are the best choice.

A pro-active systematic approach to selling that goes on all year must be implemented. Send a relevant project example or a useful explanation of your proposed scope. Send them an article/note/blog that shows how you helped another customer finish their project faster. Ask what a successful result would look like for the customer. Send them a handwritten note thanking them for the contract or the opportunity to bid their work. Make the bid part of a clear sales process that helps the customer understand your offer. If a direct price concern comes up, read how to discuss a price objection.

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