Build Your Business: Hone your rental/sales pitch
Be prepared and don’t lead with price concessions.
By Daniel Kehrer
The one thing that nearly all businesses need to stay alive and grow is more business. Unfortunately, not all business owners and entrepreneurs have optimized their approach to a sales pitch to improve number and size of sales.
It takes more – in some cases much more – than simply laying out features and benefits and then talking price. This applies to business-to-consumer (B2C) and business-to-business (B2B) selling, both of which rental centers actively engage.
Sales strategy
The words you use and the order in which you use them can make a huge difference in the final sales total. That is also true in establishing a price. For example, studies have shown that a restaurant sells more wine when the wine list shows the more expensive wines first. Why? Because the other wines appear more reasonably priced by comparison.
The same reasoning applies to all kinds of other products and services. Showing the top-of-the line first gets customers longing for the best, and makes lower price points seem more affordable.
Avoid the negotiation trap. Many business owners or salespeople are constantly negotiating price because when price first comes up, they make it sound as if there is room for negotiation.
Even if that’s the case, let the customer bring up the word “discount.” All too often, business owners make concessions before the price has even sunk in. Suggesting that price is negotiable makes sales professionals sound desperate. Once a salesperson puts the price ball in the customer’s court, the rental center will play catchup the rest of the way.
Have prepared answers to possible objections. Keep detailed notes on every objection you or other
salespeople get from a potential customer and know exactly how to counter each one of them. When the price objection comes up, for example, point out that while thrift is good, quality is better. Also, mention that cutting price would mean cutting quality and that’s just not a good option for the customer.
Make the conversation about value rather than price. Customers are willing to pay more if they perceive they are getting a good value. Value includes much more than just price; elaborating on benefits will keep the conversation focused on the value the customer is receiving.
Tie price concessions to additional orders. If pressed on price, offer a small concession but only in return for something else such as more orders, advance payments or other things that benefit your rental business.
If the customer is asking for a discount, that’s a good thing because it means they are interested in buying. From there, it’s the salesperson’s job to help them understand what they get out of it.
Know the psychology of numbers. The way salespersons talk about numbers can make a big difference. Saying “the quad bike is going for three” sounds less than “$3,000.” On the other hand, if the sales pitch is attempting to point out what the customer stands to gain, use full numbers. “In the end, you will save yourself $544.”
Learn how to properly present price inside a proposal. The price should be folded into the description of benefits like meat in a sandwich.
Here’s an example from an office furniture proposal: “You will receive a new writing desk with two drawers, as requested, a hanging file folder and two cable connectors, for $2,942. Of course, this will include the adjustable
legs designed for ergonomic positions and the power strip attachment.”
Have a prepared close. When it comes down to it, closing a sale is the most important part of the process. This is where you get the customer’s final agreement to make the purchase. Prepare some closing questions where “no” answers are not an option.
For example, mention a key benefit the customer would like to have, and ask if this is indeed something of value to them. When you get a “yes,” it’s time to stop selling. Don’t try to add something else that gives the customer a second chance to challenge.
Daniel Kehrer is founder and managing director of BizBest Media Corp., a nationally-known, award-winning expert on small and local business, start-ups, content
marketing, entrepreneurship and social media.
This story originally appeared in the July-August 2017 issue of Pro Contractor Rentals magazine. Copyright 2107 Direct Business Media.
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