Facts “Tell” and Stories “Sell”
Value ads are stories that are told throughout your presentation that “build value” with your clients. Stories are always more interesting to people and they can deliver a very powerful message, if they are rehearsed and practiced.
I believe the most powerful way to get your message across is to never “tell” someone what you can “show” them. In some cases, there just isn’t an effective way to show them the point you need to get across. This is when stories are awesome!
Price versus Cost
It is critical that each of your clients and you know the difference between price and cost.
Price is what you pay TODAY to purchase a product or service.
Cost is what you pay OVER THE LIFE of that product or service to actually OWN it.
Big difference! We are rarely the cheapest and nor can we afford to be if we want to continue and grow our business. Ensuring each of our clients receives the best value or the lowest COST requires us to constantly invest in ourselves, our employees and our business.
My parents used to tell me: “Good Things Aren’t Cheap and Cheap Things Aren’t Good”.
Although I challenged this reasoning many times in my life, I have come to the conclusion that his words held a lot of truth.
There is no doubt that our customers are looking for “The Best Deal” but what they really are saying to us is that they WANT THE BEST VALUE. The truth of the matter is that the lowest COST will NEVER be the highest VALUE.
This means it is super important to have a couple of stories to share with your clients that brings this to the surface and gets THEIR agreement that they are most interested in the lowest cost, not the cheapest price.
This starts with making sure that you cover the difference between Price and Cost with every client in the beginning of your call. Not right after your introduction, but when the opportunity presents itself. Don’t force it, wait for money/budget to come up or when you finish reviewing their goals and what they are hoping to get out of today’s visit.
“Sally, most people I meet with are getting multiple estimates and meeting with a number of companies to ensure they are getting the best deal. The smartest investors in the world are always interested in getting everything they want at the lowest cost, wouldn’t you agree?
Well it is important for you to know that we pride ourselves on being the lowest cost provider in the area. We carefully design and expertly install new systems everyday with this goal in mind.
See what most HVAC companies believe is that they need to focus on delivering the lowest price rather than the lowest cost. There is a big difference here and it is important for you to understand that not all air conditioning companies look at this the way we do.
Price is what you will pay today to purchase a new HVAC system. More importantly however is the Cost. The cost is actually what it is going to cost you over the life of the new system to own it. It is a proven fact that the cheapest price is never the lowest cost.
My goal for us today is to carefully design the right system that will satisfy these four goals:
1.) Reduce your utility bills
2.) Improve your comfort in your home
3.) Reduce your dust levels / improve the quality of air that you and your family breathe each and every day.
4.) Improve the overall health and safety of your home and system
Now, there are more than 30 different configurations we can come up with for your home. In order for me to guarantee we are installing the right one for you, we need to discuss how long you plan on being in the home, but before you tell me understand that I have systems designed for people who plan on being in their home for 1 to 5 years, systems for 6-10 years and other systems for those who are looking to stay in their home for more than 10 years.
Think about this for a minute. There is no wrong answer, however if you give me the wrong number of years, there is a good chance we will install the wrong system for you today.”
This can be added to the beginning of any presentation and have measurable results. It allows you to get the customers mind around one of your biggest objections (COST) prior to even starting your presentation. In some cases it will flush out that the customer IS actually ONLY interested in the LOWEST PRICE, which I would rather know up front. This DOES NOT mean that they are actually going with the lowest estimate, so don’t pack up and leave.
This means that they need you to educate them on the difference of Price and Cost. You will be amazed at how many people will actually tell you that they are basing a large portion of their decision on price, and then turn around and purchase a $20,000.00 system. Not everyone will, but I can assure you your success rate will go up across the board.
Here are some additional stories that you should use throughout the call to revisit Price versus Cost with the customer PRIOR to getting to the end of your presentation or delivering any investment amounts.
Most Important Day of an Air Conditioners Life is the Day it’s Installed!
“Investing in a new HVAC system is not like buying a TV or refrigerator, where you just bring the product home and plug it in. An HVAC system comes in multiple pieces and it is essential for each part to be assembled properly in order for the system to perform and last as the manufacture intended. This is why Consumer Reports is unable to “rate” whole house air conditioners in their magazines. It always comes down to the person installing the system, rather than the make or model.”
(Review the “Value of our Installation Page with Client”)
(Can be used directly after the Value of Installation Page or anywhere you feel it makes the most sense prior to presenting investments)
“Allow me to share a short story with you that helped me truly understand the difference between price and cost.
When I bought my first house I needed a hose for the yard. I went to Home Depot and was almost overwhelmed with the number of choices in front of me. There was a 100’ Rubber hose with a life time warranty for $75.00 and a 100’ Vinyl hose for $25.00.
I didn’t really think there was a difference in hoses so I chose the twenty five dollar vinyl hose and brought it home. After unwrapping it and turning on the water I noticed the water pressure was very weak and low-and-behold there was a __________(kink…get them to say it if possible)
What I didn’t realize was that I had just bought my first kink. While wrapping up the new hose I ended up with another kink.
At first this was no big deal, but since we use the hose every day these kinks continued to get worse over the season and a couple more had even been added to the collection. After a couple of months what do you think happened at one of these kinked spots? _________(Sprang a leak…again let them answer)
That’s right it burst. So being the handyman I am, I went back to Home Depot looking for “Parts” for my almost new hose. When I found them in the aisle once again there were many choices. I could purchase the brass parts for $17.00 or I could buy the plastic parts for $5.00.
I picked up the plastic repair parts and was heading to the checkout and found myself walking by all the hoses again. It is there that the light bulb went off in my head.
I had invested in the lowest price and NOT the lowest cost product.
See the $75.00 dollar hose would never kink and therefore never need to be repaired and if for some reason it did develop a problem, it had a Life Time Warranty and I could just bring it back and exchange it for a new one.
The Vinyl hose however had lasted about 6 months and I was now investing not only $5.00 dollars in replacement parts, but also investing valuable time. At the current rate I calculated the Vinyl hose would actually end up costing me a total of $125.00 over the course of 10 years as opposed to the $75.00 rubber hose I original decided against.
($25.00 initial cost, $10.00 per year in parts X 10 years)
(The 125.00 vinyl hose cost doesn’t include your time, gas and loss of productivity)
I placed the parts on top of the vinyl hoses on the shelf and ended up purchasing the 100’ rubber hose instead of the parts because THIS was the lowest cost option.”
“What is your favorite car? (Let them respond)__________________ Okay so you go to the local Lexus dealer here in town and decide that you are going to purchase your brand new Lexus, BUT you are focused primarily on the price of the new car and not the cost. The dealer decides to give you a smoking “deal”!
If this were the case your car would show up in about 3 weeks to your house. There would be a knock on your door and as you were signing for the delivery you would hear a beeping noise. Curious, you poke your head out the door and notice that you’re new Lexus is being delivered in crates, each carefully labeled and packed with all the pieces required for your new car. The delivery truck finishes and drives away, leaving you with your brand new Lexus.
Let me ask: What is it that is going to determine whether your new car is the dream car you remembered from the test drive or if it will ever even leave the driveway? ______________
(let them answer….That’s’ right, how well it is assembled)
You would never contemplate purchasing a car this way, but the truth is, this is exactly how Carrier, Trane, Lennox and all the other manufactures deliver their products when investing in a new HVAC system.
Sometimes people don’t realize that the least important part of this decision is the equipment and the most important part is choosing the right company to install everything.
I mean let’s face it; Carrier, Trane and Lennox won’t be showing up if there is a problem on the hottest or coldest day of the year, right? But we will!”
Stories are powerful. Don’t focus on manufactures or brands! The only brand you need to promote is you and your company.
There is no doubt that these stories have the potential to elevate your sales success and ultimately put thousands of extra dollars in your pocket. The only way this can happen is if you practice them and develop them as your own. Come up with other analogy’s that speak the same message.
I can assure you this: If you don’t put forth the effort or don’t practice these to perfection; you will never reap the rewards of your full potential.
So you are now faced with a decision…..Get After It and use these tools to improve your quality of life. Or, tell yourself all the reasons why this information won’t work for you and disregard it.
Only you can make that decision….choose wisely
Our number one goal at Success4others is to help as many people as possible improve their quality of life, their production and their earnings. Connect with us on LinkedIn, Google+ and Facebook today so that you never miss any of our great articles, trainings or events!
To Your Ultimate Success,
Success4others, LLC www.success4others.com