How to Sell a Premium Offer Instead of Emailing Quotes — Transcript

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1. 0:00How do you scale a small family roofing
2. 0:02business? I'm the sole person who
3. 0:04handles all the back end paperwork,
4. 0:06client acquisition, and sales. My family
5. 0:07My family handles the installing of the
6. 0:09roofs. We don't have much capital.
7. 0:13>> We have to solve capital first. [snorts]
8. 0:14Cash flow first.
9. 0:15>> Right.
10. 0:16>> Honestly, this is this is a money models
11. 0:17and sales issue.
12. 0:19>> You got a book coming, my friend.
13. 0:21>> Yeah, it's a money models and sales
14. 0:22issue. So, what's really crazy and like
15. 0:25by the way, everybody who's listening
16. 0:26this who's in home services, you guys
17. 0:27are the most
18. 0:29the the most guilty of this. You guys do
19. 0:30this more than just about anyone, which
20. 0:32is you do this cost plus pricing. And
21. 0:33that's why everyone's like, "Oh, the
22. 0:34industry average in you know, in in
23. 0:36roofing, in plumbing, in HVAC, and
24. 0:37whatever home service you want is so
25. 0:39low." It's like, "Yeah, cuz everybody
26. 0:40just says, "Oh, it cost me a hundred, so
27. 0:43I'll charge a hundred plus." It's like,
28. 0:44"Dude, that's not like the customer
29. 0:47doesn't care what it costs you. They
30. 0:49don't care."
31. 0:50>> Well, they actually even show people the
32. 0:51cost and they do a plus. It's it's
33. 0:55>> it's ridiculous.
34. 0:56You You just say like cuz cuz also
35. 0:59be
36. 1:00>> [sighs and gasps]
37. 1:01>> Because then what happens is and here
38. 1:02like think about this for a second. You
39. 1:04actually have a disincentive to decrease
40. 1:06your costs. Why? Because when you
41. 1:09increase your costs based on your
42. 1:10pricing method, your absolute profit
43. 1:13goes up.
44. 1:14Net by percentage goes down, I want to
45. 1:15be clear. But like then you're quoting
46. 1:17things at higher jobs at higher amounts
47. 1:19because cost plus is like, "Okay, well,
48. 1:22if it's a hundred dollars versus a
49. 1:23thousand dollars, then a twelve hundred
50. 1:25dollar deal versus a hundred twenty
51. 1:26dollar deal, there's twenty dollars
52. 1:27versus two hundred." So, we have no
53. 1:29incentive realistically to decrease our
54. 1:31prices, which is ridiculous. So, we
55. 1:33should be thinking fundamentally, what
56. 1:35does the customer want and what are they
57. 1:36most afraid of? In any kind of home
58. 1:38services type stuff, the thing they're
59. 1:40most afraid of is that it's over budget
60. 1:42uh and that it breaks long term. And
61. 1:44that it happens too slow.
62. 1:46Okay? And so, we need to pick one or
63. 1:49multiple of those vectors to guarantee
64. 1:52against so that a customer says, "Oh,
65. 1:54this is different than the other thing
66. 1:55because they have guaranteed against my
67. 1:57downside and for that reason I'm willing
68. 1:59to pay a premium for the insurance that
69. 2:01comes with it.
70. 2:01>> That's so good.
71. 2:03That's so good. By the way, um the the
72. 2:05other problem with the cost plus is the
73. 2:07easy way out of just sending a quote.
74. 2:10So, if you can just if you can just do
75. 2:11those two things, don't deliver don't
76. 2:13just send a quote on email or text. Um
77. 2:16and when you're actually delivering the
78. 2:17quote, use those three vectors as as
79. 2:19Alex was talking about and you can
80. 2:20actually say, "Oh, all right, this is
81. 2:21the fear that they have." And you can
82. 2:23insure against that. The automatically
83. 2:25like, "Oh."
84. 2:26That that's the value, right? Cuz as
85. 2:28soon as you de-risk them, they'll pay
86. 2:29for whatever.
87. 2:31Which is good. Awesome.
88. 2:32>> If you like this video and you're a
89. 2:33business owner who wants to break
90. 2:34through your current revenue ceiling, I
91. 2:35distilled every lesson from scaling 10
92. 2:37businesses past 10 million and three
93. 2:39businesses past 100 million into a
94. 2:40completely free scaling roadmap that
95. 2:42I've used to go from zero to one, zero
96. 2:44to 10, and zero to 100 plus. And so, you
97. 2:46can click here and you can check it out.
98. 2:47Again, absolutely free. And since you're
99. 2:49a business owner, I appreciate you and
100. 2:51uh enjoy.