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Ask Al
by Al Levi
September 26, 2008

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Editor's note: Al Levi knows what it takes to make your business run with less stress and more success. Contractors just like you seek his advice regularly. Al has agreed to let us share with PM readers some of the questions he gets and the answers he gives. The focus is strictly on problem solving and handling the day-to-day operations of a successful contracting business.

To send Al your own questions, which if selected will run anonymously, send  us an e-mail with the subject title "Ask The Experts" to Expert@PMmag.com or fax to 248/502-2110.


No More Skipping The Selling Process

Q. I've recently gone from time-and-material to flat rate selling. My techs are struggling with having to present a price before they start the work and actually getting the customer to agree.

The beauty of time-and-material was that they got to skip the selling process because they did the work and the office sent the bill. The ugly part is the fight to get paid by the customer later and all the hassles it takes to put together the pricing.

How do I get them selling the flat rate way correctly?

A.There are many steps to switching from a time-and-material shop to a flat-rate shop. The first step involves getting buy-in from your techs using a training method shown to me by Dan Weltman. Once they believe in your pricing from the Dan Weltman training you've done, you need to do role-playing with them in your own shop or, better yet, at a training center.

Here's where they must sell you the job.

It's your opportunity to coach them on how to ask good questions and listen effectively. This is where you teach them to take off their blinders and look around for more suggestions that are in the customer's best interest.

Then, I highly recommend you have them search the pricing in your flat-rate manual and present the options to you as if you were a customer. Do this frequently enough and they'll get very comfortable with the process.

This column is meant to be a resource only. Please check with your own trusted business advisers, including your own attorney, to make certain that the advice here complies with all relevant laws, customs and regulations in your area.


Al Levi
info@appleseedbusiness.com
Al Levi, of Appleseed Business, specializes in helping contractors run their businesses “with less stress and more success.” Through private workshops, on-site assessments, customized operating manuals and staff training programs, Al delivers the benefit of the experience he gained from years of operating a large and successful family HVAC/plumbing business. Learn more by visiting www.appleseedbusiness.com. You may also contact Al at info@appleseedbusiness.com or by fax: 212/202-6275.

  Comments (1)Post a Comment
Title: No More Skipping The Selling Process


I have seen this happen quite often where the employees are not 100% sure that flat rate, straightforward or upfront pricing can have an impact on the company , he or she and the client. Remember your asking them to take a huge chance on a new way of doing business. One that is completely foreign to them.
I am involved in this type of sales process and have been involved for years. Many come and go without realizing the potential success for them, the company and clients .Doing what is best for the client.
Ari is correct they need training. They need proof that it does work. They need a guide on what to do and how to make it work. They need training geared towards answering concerns and objections from clients. They need to learn when the proper time to present the solution is and how to present the solution. They need to know they are worth more then what is charged. They need to start learning how to build relationships with the client.
The change from time and material to flat rate is enormous. The old way of thinking is gone. Your men and women must learn a new strategy. No longer can they baffle the client with product knowledge, codes now they must engage the client by asking questions. Now they must build relationships to earn the right to do business with the client.
Expecting results without proper training, expecting the employees to jump on the train without training will not happen. The success rate is not on their side. They will revert to the old ways without proper training. Buy them a book to read. Brian Tracy, The art of closing the sale. Tom Hopkins, Selling for dummies will give them basic tools for success.
Then send them to training seminars that teaches them how to answer objections and concerns without being aggressive or using fear to gain the sale.

I can vouch for those who sell flat rate, upfront, straightforward pricing will enjoy at the minimum twenty-five percent increase in their salary. I can also guarantee they will enhance their own lives by what they will learn about themselves and the psychology of their clients.


 

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