Michael Stone writes for Markup and Profit on when the right is for your client to set the price in a remodeling project. Stone describes a coaching client he knows who wanted to discuss a customer of his. This customer had worked with the coaching client before and wanted to move forward on remodeling three bathrooms. Stone recommended that the coaching client tell the client that he would need to take things out of the job or change specifications on fixtures, cabinets, floors, etc throughout the bathrooms.
The coaching client did just that and the customer went up from $87,000 to $97,650 for the remodeling project. Michael Stone says from this we can learn three things.
- The contractor knew it was easier to cut his price in order to ensure he got the job
- Yet, you don’t have to cut your price to get a job because the homeowner usually doesn’t know the full cost of a remodeling project. All the customer cares about is how much money they are going to have to spend.
- Recognize the holes in your sales presentation