ARTICLES

You’ve heard us say before that installed sales is a service, not a product in and of itself. That service has value to your customers, whether they be builder/contractors or homeowners in search of remodeling assistance. There is discernable value present in offering installed sales in the first place; you have demonstrated that you care about providing the level of service demanded by today’s consumer and that you want to differentiate yourself and your company from the competition. That’s great. But you’ve got to understand that simply offering installed sales isn’t enough. Now you have to really go to work.

Whether you are installing for your builder/contractor customer or homeowners in the retrofit market, service is of paramount importance. Next month we are going to devote some time to discussing the service element, but for now, let’s look at how to quantify your service offerings.

First, understand that everyone makes buying decisions based on their own unique reasons. Issues that you may find important may not be of any importance at all to the customer, and what turns one customer on may not trigger even a mild response from the next customer. Everyone has his or her own unique value points, and that is where proper and thorough qualification of the customer comes into play. Qualification is perhaps the most important, and at the same time, themost misunderstood phase of the selling process.

In last month’s column we addressed the basics of the types of questions you need to focus on when talking with your customer. We discussed questions that uncover reasons which go beyond the surface, prime-buying motives that are driving your customer to make buying decisions. You see, we are in a commodity business where the customer perceives us retailers as all selling the same product—only our prices are different. Your mastery of the qualification process will begin to separate you from the competition. It will also begin to provide a competitive edge for your company because you will have uncovered the real reason that these types of installed products are so important to your customer. And, once the true motives are uncovered, you will be in a stronger selling position and able to propose exactly the correct product and service mix to meet the ever-changing needs of each customer.

New Construction

When installing for builders/contractors, look closely at the product offering you have selected to insure that the products you propose to install are, indeed, products that offer additional value in your market. For example, if you want to install windows in new construction, is it because you got a great deal on a window line from your supplier, or because you know that the framers in your area are having a difficult time in properly installing windows for the builder?

There’s a major difference. One, you want to move product. Two, you want to provide a needed service. Which do you think will allow more margin? Obviously, the service will pay you more and offer more value to the builder. But there’s more. First you have to determine if the market will allow any additional margin on windows installed; how much will it cost you to have them installed, whether the framer provides any discount to the builder for not installing the windows; and, barring that, if you can quantify the value of this service to that builder. Sounds complicated? Not really.

By quantifying a service, you are prepared to demonstrate that there is a measurable difference in the end result by using that service. For example, your company supplies windows for a builder, but you’ve been plagued with callbacks after the houses are finished, and all of the callbacks can be traced to faulty installation by the framing crew. Who is currently paying for you to go out to service that product? Are you charging the builder for the service call, is he or she providing a carpenter from another crew to fix the problem?

You decide that you will train a crew in the proper way to install the windows and provide this service. But consider how much will this cost you in addition to the material cost? Apply your mark-up. Now you have to demonstrate to the customer that this additional cost will save him precious time money in the long run. And it has to be a substantial savings, either in time, money or frustration—all of which are emotional issues that affect the efficient operation of a builder’s business.

You can’t simply assume that by offering the service your customer will immediately place a value on it. You have to demonstrate this value. And remember one of the original premises: Each customer will have different value points.

Remodeling

The remodeling/homeowner customer is no different. Most of today’s homeowners don’t have a clear understanding of the construction process and have developed preconceived ideas of how much it should cost to have a product installed. In many cases these ideas have come from a family member, or the "office expert," who gave them a false figure. But that’s the figure on which they’ve based their budget. Now your job is to uncover this idea, fathom what the budget is, and prepare a proposal that will either fit that original budget or provide quantifiable justification for an increase in budgetary allowances. You have to assume the role of educator in this instance, and you do that by properly qualifying your customer at the outset.

That, in a nutshell is value-added selling. It’s adding discernable value to the products and services you offer and insuring that the service levels are applicable to the customer you are trying to serve. Easy? No, it’s not. It takes time, practice and a thoughtful approach to selling. Simple? Yes, it is—if you do it right. And it’s the only way to approach installed sales professionally!