Dealing with Unrealistic Price Expectations - Foundation Finance

Dealing with Unrealistic Price Expectations

Most contractors have encountered a customer who expresses price concerns once you’ve delivered your sales presentation. While you know their expectations are unrealistic, take the time to gather information before writing them off – you may be able to turn it into a sale!

Move Forward With the Project or Walk Away?

Below are some questions to ask to determine whether or not to continue to move forward with the sale of the project.

  • Ask the prospect how they arrived at the budget they set for the job. This information is helpful since many clients are not well informed as to what renovation projects cost.
  • Offer three price ranges their project could fall into and explain what they will receive with each. What is realistic for the customer?
  • Offer the customer low monthly payments with financing. Breaking down the cost of the project by monthly payments will help the customer see the investment in the project in smaller amounts instead of the overall price tag.

If the customer is continuously asking you to lower your pricing or stating that they don’t know their budget, it is probably time to walk away. Give your clients good information, help them adjust their budget as well as offer financing, and make the sale. If they won’t adjust, move to the next client with a realistic price expectation. If you can’t cover your job costs, pay your overhead, and make a reasonable profit, you don’t want to do the work.

Read the full article here.

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