February 2020

Page 38

Upselling to Higher Profits John DeRosa, Director of Contractor Training, SRS Distribution Giving your clients options is an excellent way to differentiate yourself and get your clients emotionally invested in their project. Rather than offering a “one-size fits all” type of roofing system, I would strongly suggest contractors educate their prospects on the different options available to them and let the client choose those that best support their vision for the project. Doing this provides a few powerful advantages to the contractor:

which is exactly what they wanted to sell it for, and the client believes they got a $1,000 value for free.

Positioning Your Options

The most effective way ■ Offering options increases the perceived value of the to upsell is to bundle options within a “good, better, project and that of the contractor. best” product offering. It’s ■ The more the prospect adds to their project, the my recommendation that more they expect they will be asked to pay. you identify five system ■ Offering options gives the contractor something upgrades you can offer to negotiate or take away in the event of a price and discuss those options objection. during the product presentation stage. We’re not Free is Bad going to offer shingle options at this point. It’s our goal I know many contractors who’ve made the decision to to get the client sold on upgrading different elements of offer “free upgrades” with the hopes that it will positheir system and then bundling those upgrades into our tion them as a better value to the homeowner. Rather “better” and “best” options, increasing the value of those than upselling the client to better options, the contracpackages. tor makes those options his “standard” – and that is a When discussing system upgrades, I’d suggest you mistake. start by showing the client a picture of their home. Use As much as I appreciate their desire and commitment the picture to highlight the critical areas such as skyto delivering a high-quality project, they must recognize lights, chimneys, vents, dormers, valleys and low slope that there’s no value in “free.” The perceived value of areas. Highlighting these areas gives you the ability to those included options is directly proportionate to what discuss their susceptibility to leaks, your plans to ensure the client is willing to pay to obtain those options. In other a successful outcome and the recommended upgrades words, those options don’t mean anything to the client the client may want to consider to increase their peace unless they say they want them and they’re willing to pay of mind. Use the weather to create urgency that prompts more to obtain them. the client to make the best decision for their home. I’d By offering the better options for an upcharge, the suggest you say, “Mr. and Mrs. Homeowner, when you contractor also gives the client something to negotiate – consider the type of weather we get here in Florida, which also works to the contractor’s advantage. Here’s an which of these two options do you think is the better example using synthetic felt as the upsell option. choice for your project?” In this example, we’re going to assume the contractor I suggested earlier that you offer five system uphas decided to offer synthetic felt as a standard part of grades and it should be your goal to sell them on at least their $12,000 roof system. Rather than offering the client three of them. If successful, you can then bundle those a $12,000 synthetic felt roof, it’s my recommendation the chosen options within your “good, better, best” packages contractor offer the standard for $12,000 and then sell and increase the perceived value of those packages. the client on the availability of a better “synthetic” underlayment for only $1,000 more. The client’s willingness to “Good, Better, Best” pay the extra $1,000 is a reflection of them believing the Before I show you how this works, I want to talk about product has a value of $1,000 or more. the power and the importance of offering a three-option With this approach, you also set the table for the “good, better, best.” When you offer only two options, the prospect to negotiate, telling you they want the better client has nothing to compare them to, which often finds synthetic felt roof but don’t want to pay the extra $1,000 them settling with the standard. When you introduce a for it. If this happens, the contractor has the ability to third option, the client will also compare the two that are make that a condition of sale by saying, “If I was able to most comparable, choosing the option that represents to make that happen for you, would we be able to get your best value for them. project started today?” Assuming the client says, “Yes,” This method is incredibly effective and the vast majorthe contractor agrees and sells the project for $12,000, ity of clients will go for the middle “silver” type option, 30

FLORIDA ROOFING | February 2020