When people don’t know the real value of something, they often use price as a quality indicator. You’ve heard the expression that if it costs too little, then it is valued too little. Counselors in the mental health field will tell that unless an investment is made by the one seeking counseling, then the counselee will not be as engaged in the process. Price does matter.
Yes, we all want a great deal, but if you engage too much in the deal, then the quality of your product disappears. Everyone knows that you get what you pay for. You might have a top quality product, but if it is priced too low, then it will be seen as inferior. I for one am willing to pay more money for better quality.
Therefore, HOLD THE LINE ON YOUR PRICING. You may even want to raise your prices. Prove the added value in your homes. If you prove the value, then there is no need to discount. The key to selling in today’s market is differentiation. The salesperson who gives away profit too early an too often is cheapening your product and doing a grave disservice to the company.
You must stem the tide of discounting and deal mongering by training how to sell the base of value and lifestyle, then the focus changes from seeking a deal to the emotional experience. Here are a few methods to neutralize negotiation and appeal to the emotions.
- Adding value is better than cutting price. Builders who sell with promotions that add value can persuade buyers to purchase from them because the residual value is higher than the competition’s.
- What would you like for us to take out? Once buyers see the value of those extra dollars and what they bring to the home, they are not going to want you to take it out just in order to meet their price demands.
- We are a true-value-for-true-price builder. We don’t mark our homes up just so we can mark them down. Sell yhour builder’s integrity and your home’s quality.
- The ‘deal’ is in the price. Let them know that your builder has factored into the published price all the deal and discounts just to provide a hassle-free home buying experience.
- Let’s look at the four types of housing products: 1) highest price and highest product; 2) higher price, lower product; 3) lower price, higher product; and 4) lowest price, lowest product. Since we are in the highest price, highest product category, we simply can’t go to a lower price. We refuse to build a home in the lowest price and lowest product category. We believe in quality.
So, vow now that you are not going to give in to the call to discount your product. It is only when bulders refuse to discount and sales people sell value that housing will truly be on the road to greatness again.
“Anything that just costs money is cheap.” ~John Steinbeck