Now just because this is what everyone is doing, doesn't make it right. You have to ask yourself what type of customer and business you want to attract and package your services accordingly. Your ability to sell your services and its perceived value is really the key.
Studies have shown that individuals do not buy based on price. As a matter of fact, price is one of the least important things in terms of dealing with an individual or a company. What people find important are confidence, selection and convenience. So, if you can confidently offer your menu of services and make it easy for them to buy, you're set.
An analogy I use a lot is, if you want Wal-Mart pricing, you'll get Wal-Mart service. If you want Nordstrom service, you must be willing to pay Nordstrom prices. Does that make sense? If you think you can offer Nordstrom service at Wal-Mart prices, you're kidding yourself. And by service, I don't just mean customer service. Service includes the whole staging design package - consultation, moving services, delivery, implementation, inventory, administration - the entire experience and the quality of that experience.
When I started getting the reputation of being "expensive" or "pricey", but "she's good", I figured there are worse things to be known for. I never wanted to be known as the "low price leader". One thing I readily admitted to inquiring prospects when they said that my prices were high was that I'm not known for low prices. If that was their basis for choosing a staging service, I was not going to be a fit for them. I stood by the fact that I provided a quality service at a fair price. Now, what's fair? Fair is a price that I felt good about receiving for what I provided.
Are you happy with the price you are charging? If not, change it. Don't complain that clients only want to pay low prices or that your competitors are forcing you to lower your prices. Your competitors are not lowering your prices and neither are your customers. You're the one doing it. You bid on the project, you publish the prices (I never published prices on my website), and you provided the quote. Remember that if everyone only wanted to pay low prices, we'd all be driving the same cars, living in the same houses, eating at fast food restaurants, and wearing the same clothes. Since the luxury market is the fastest growing retail segment out there, this is obviously not true.
The thing I learned in my many years in sales was that whenever I cut my prices to "be competitive", I always regretted it. The client never appreciated the discount and I didn't enjoy servicing the account. I felt robbed and that's not how I want to feel when I'm working with clients. You want to have the type of client who you enjoy working with, where you can deliver the type of value you want to deliver and get paid well for it.
Stop trying to work with people that you don't make a profit from. You're not a non-profit organization nor are you in the charity business. If your customer truly needs a low price, you really can't afford to sell to them.
Two common objections that you've probably heard:
1) "Your prices are too high. XYZ Stager is only $XXX", i.e. "I can get it cheaper somewhere else."
I used to laugh when they would call and during the pre-qualification stage of the conversation when we're trying to figure out what their budget is, they almost always thought that the price we would quote will somehow be less than the number they had in their mind. If their number was way off base, I would encourage them to go with the low quote they supposedly received, then slip in the "buyer beware" to create doubt in their minds. The best thing for you to do is acknowledge the claim and tell them you cannot meet or beat the price, so they should GO FOR IT and GOOD LUCK! Sometimes just doing this was simply calling their bluff and they would go with your services anyway at the price you quoted. If not, you still win because more than likely, they would have been a nightmare customer.
There are usually 3 reasons why they really can't get it cheaper somewhere else:
a) They're lying about the price. They're really just trying to
negotiate with you.
b) The same stuff is not available right now. Maybe they
can get it for a lower price but the service is not available
for 3 weeks and we know that real estate is very time-sensitive.
c) It's not the same stuff. If they honestly believe they can get
the same Staging for $500 that someone else quoted $1500,
I need to work with the $500 Stager to help her raise her
prices!
2) "If you give me a good price, I have X number of other properties for you to stage."
Don't fall for this one. I know it is a tempting offer, but it's usually just a negotiation tactic to get you to discount your prices and once you do, they'll keep asking for additional discounts. Here's what I would recommend you say, "Mr./Ms. X. Thank you for your interest in our Staging Design services and the opportunity to work with you. Since we have not had the chance to work with one another yet, why don't we start with one property and see if it's a good fit before we discuss other projects. If it works out, I would love to work with you on all your future projects and I always take care of my loyal customers. Does that sound fair?"
How can anyone object to that? You're being gracious. You're giving them an out if things don't work out. You're not offering a discount, but it is understood that if you work with one another regularly, over time, you will take care of them (however you choose to, i.e. squeezing them in at the last minute, complimentary consultations, etc.). Everyone wins. Save yourself time and aggravation by avoiding these types of customers and focus on the "good" customers.
In closing, keep the following reasons in mind why you DO NOT want to deal with price buyers:
- Price buyers take up all your time.
- They do all the complaining
- They "forget" to pay you.
- They tell other Customers how little they paid you and brag about it.
- They're not going to buy from you again because the only loyalty they have is to the price - they'll always be looking for a lower price.
© 2008 AKC Enterprises, Inc. All Rights Reserved.
WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, but here's what you MUST include with it: Alice T. Chan, the Staging Designer's Success Coach, publishes the bi-weekly ezine "Set the Stage for Your Success". If you're ready to skyrocket your Staging Design business and gain credibility in record time, get your FREE tips now at
www.SuccessfulStagingBiz.com.
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