HELPING YOUR CONTRACTOR TO SELL MOREABC DALLAS MARCH 8, 2014

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Learning Objectives

Help your contractor sell more in the home: Become the trusted industry expert

1. Understanding and meeting customer buying criteria2. Effective pricing3. The myths behind features vs. benefits

THE CUSTOMER’S DECISION-MAKING

CRITERIA

Decision making criteria

A 2008 Harvard study:

1. Confidence in the Manufacturer

2. Confidence in the Company

3. Confidence in the Associate

4. Price

Confidence in the manufacturer

Confidence in the Manufacturer:

• Different from pre-recession mindset• Do it right the first time• Reassure the customer the manufacturer has staying power• Homeowners have a sense of pride about the quality of the

products they choose• This mindset shows change in buying behaviors

Longevity and strength - Simonton

Simonton celebrates 67 years this year!

• Average house cost $1459• Average wages $2500• A gallon on gas .15 cents• Cost of new car $1120• Great Alaska Earthquake 7.4• BBC started• The first Vespa was manufactured• First microwave oven invented• First class postage .03 cents• Born:

• George W Bush• Sally Field• Freddie Mercury• Cher• Donald Trump • Sly Stallone• Steven Spielberg

Longevity and strength - Simonton

Confidence in the manufacturer - summary

The Industry’s

Best Overall Value

Proposition

In business since 1946

Financial strength of Fortune Brands FBHS

Industry’s shortest, most dependable lead-times

World class manufacturing

National sales and service levels

Consumer understanding

Proven track record of service

95% “Perfect” orders delivered on time

The premier trade brand chosen by professional remodelers and builders

Industry-leading warranty

Consistently delivering the best since 1946

Confidence in the service provider

The service provider – your contractor:

• When others receive good service, it speaks to credibility

• Longevity of their company speaks to honest and reliable business practices

• Allows consumers to support local business• Provides reassurance their company will be around to

honor future warranty concerns or additional projects

ExamplesYour contractor should incorporate talking points:

For example:• How long has your company been in business?• How many customers have you done business

with in your company’s history?• What kind of training or certification have your

employees received?• What kind of awards or recognition has your

company earned?• Can you provide testimonials from past

customers? Are they in writing?• Partnership with ABC – National infrastructure

and huge buying power

Confidence in your company - summary

Differentiate from competition. It is entirely appropriate to brag a little.

• Provides peace of mind • Homeowners begin to envision hiring them• Become the trusted advisor• Be clear in company and product distinctions• Have a plan and be prepared to answer questions or

concerns• Know the difference between your product and your

competitors

Differentiate from your competition by merely talking about company bragging points. Most competition will most likely be less prepared!

Confidence in the associate

Credibility

• Mostly likely reason customers do not buy

• How to be a People Person

• Listen – #1 confidence builder

• Ask questions

• Repeat back “if I understand you correctly…”

• Building rapport builds the customer’s confidence

• Train to remove fear

Confidence in the associate“Customers only buy from people they like.”

“Liking” means the customer has confidence:

• Truly understand their needs • Confidently share product expertise • Demonstrate the highest level of

integrity • Respect their budget• Attempt to provide the most effective

solution

Summary – confidence in the associate

• Treat every customer as your closest loved one

• Avoid controversial topics

• Don’t trash your competitor – take the high road

• Accommodate the homeowner’s needs through your product offering and within their budget.

• Tell stories. Be likeable.

• And most importantly SMILE!

PRESENTING PRICE

Price

• 81% of customers state that staying within

their budget is VERY important

• However, 72% stated that when great value is

present, they will gladly exceed budget by

more than 20%

• Great Depression thinking has returned

• Financing options make projects more

affordable

Value vs. Price

Buying Behavior

Which is a better question?

$$$A

$$B

$C

YES or NOor

Packaging the customer’s options

Many research studies agree when given three options, customers generally choose the middle option.

You should anticipate giving the customer three pricing/product offerings at the same time.

1. The most expensive (dream) option2. Your target option3. Their budget option

$$

$$$$

Option 1 – “Dream Option”The “dream option” contains every upgrade, style, color, option and window in which the customer showed interest. Here are some examples of some dream options:

Bay/bow windowWood grainHardware upgradeFrench Door vs. Patio DoorEnergy Efficient glass upgrade

Full screens if applicableExterior paint color optionsAll windows in home vs. a few

If you don’t present it they cannot choose it – and some will!

Option 2 – “Target Option”

• This option should be the one which best integrates their needs, wants and is lightly higher than budget.

• When this option is presented, acknowledge that it is slightly above their price range.

• Also make clear that you believe it to be the best option for them. Using phrases like “best bang for your dollar” or “most practical” will help them to understand you are trying to best meet their needs even though it means slightly exceeding their budget.

The target option should be priced slightly above their budget range by about 10-20%.

Option 3 – “Budget Option”

The budget option should be priced at or slightly below their budget range.

• Giving the customer an option which is at or below their budget range will show the customer that you listened and care about their needs

• When this option is presented, acknowledge that you have done everything you can to accommodate their budget.

• This is a good time to remind the customer that this project should only be done once so doing it right (and how they want) should weigh into their decision.

Presenting price - summary

Giving the customer three options gives the customer more freedom of choice and shows that you respect their needs, as well as their wants.

Be sure to present all three options:• The dream option can increase your average order value significantly. • Your target option is usually where you will land. • The budget option shows the customer the respect they expect from a

consultant with good character.

Your presentation should include a financing option/monthly payment. Consumer’s tend to accept a $200/mo payment more readily than a $9000 price tag.

Presenting three options and monthly financed payments will significantly increase your closing percentage

CONVERTING FEATURES INTO BENEFITS

Section Three:

Features VS. Benefits

”A benefit is only a benefit if the customer sees value in it.”~Doug DeLuca

Features to benefits - summary

• Be sure to do some investigating to determine your customer’s important features.

• When you discuss the product features with the customer, always follow up with its benefit.

• If you think a feature and benefit will be important to your customer, show it.

• Every feature has a benefit to the customer who desires it.

“People don’t want to buy a quarter-inch drill, they want a quarter-inch hole.”~Theodore Levitt

“Which means to you…”

Double Hung

¾” Stainless Steel Constant-Force

Coil Balance Allows for a maintenance free, system

for sash stability.

Multiple Chambers Profile

Vinyl profiles are filled with 13 dead air chambers that increase window insulation

and aides structural integrality

Tilt in/Lift out SashAllow sash to tilt in for easy cleaning

Supercept Spacer SystemMakes for low conduction rates, moisture-resistance and thermal

efficiencyContoured Extruded Lift RailsAllows for easy opening –no matter how

big the window.

Flush Mounted Tilt LatchesFor a clean, smooth sash rail.

Dual Air LocksFor ventilation

Cam LockUnique designed secure

window lock

Fusion-Welded Frame and Sash

Profiles and sashes are fused together to create a weather tight, strong one-

piece unit.

Accessory GrooveFor the addition of decorative

trim & to aid in installation

3 ¼” FrameAllows to fit most

openings

⅞” Insulated Glass Unit

Double pane, Double strength glass with

Low E and Argon Gas for increased energy

performance

Exterior Frame

Meeting RailMakes for a tight seal with

our patented Inter-locking/Over-lapping

design

Extruded ScreensFor strength and durability

ReviewHelp your contractor to sell more in the home:

• Understand and meeting the customer’s decision-making criteria•Helps your customer’s message to be more direct•Manufacturer, Contractor, Associate, Price

• Convert features into true benefits•Speaks the customer’s language•Be relevant

•Offering three price and product points•Closes more sales•Increases average sales price

These proven industry techniques will help your contractor with a higher closing percentage and higher average order value