Remodeling contractors are frequently questioned, “What’s your markup?” from potential buyers. Do you know how you would answer? The idea is to respond with questions of your own to show you’re the expert. Here are a few suggestions on how to handle that question.
- Be confident with your pricing. It’s important to be clear and confident with yourself that you and your company are worth the prices you have decided to charge.
- Reverse the question. Find out why your potential customer is asking this question. Maybe it’s because they were told by a friend they should ask this question of all possible contractors but they actually don’t care about mark up. This will help shape your answer
- Did you miss a step in the sales process? If a potential buyer is asking about price and markup late in the sales process it might mean that all of their questions or concerns were not addressed earlier in the process. In this case, go backwards and make sure you understand all of your customer’s pain points, emotions, wants, etc. and remind them why you believe you and your company are the right partner.
- The answer. Talk about covering overhead, cost of goods, keeping the business open and improving, etc. You don’t have to tell them how much you are marking things up.
This can be a tough question but if positioned correctly, you can use it in your favor to reassure potential buyers of you and your company. The main point is that you must make money when running your business, after all, you are the remodeling expert. Continue to boost your sales by offering the flexible financing programs available through Foundation Finance. Call us at 1-855-241-0024 ext. 5012 for more details.
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