Contracting Heaven Or Hell?

“The mind is it’s own place and can make Heaven out Hell or Hell out of Heaven.” – John Milton

Get a Grip On It

Opposite George

The above video clip always makes me burst out in laughter. Do you remember when the TV show “Seinfeld” was a huge hit on NBC’s “Must-See TV” every Thursday? I have probably watched every episode at least 2 or 3 times. The one episode that really stands out for me more than all the others is the episode where George Costanza decides he’s going to do the opposite of what he would normally do. The episode was called “Opposite George.”

Looking At the Truth Straight On

Basically, instead of always lying to himself about how good things were going in his life, he decided that he gotten to the miserable place he was now, by the actions that he had taken. He finally owned up to his failures.

The Decision To Make a Change

Upon this discovery he decided that from now on, in order to make his life change for the better, he would do EXACTLY THE OPPOSITE of what he had always done his entire life. Up to this point, his life was typified by economic and personal struggles. He was a man that couldn’t keep a decent job and was also dismissed by every woman he approached as a schmuck.

He decided to break from the past by doing the EXACT opposite of what he normally would do to see if it would make a difference in his career and lifestyle. He began his “opposite” theory as he was sitting in the diner with the gang. That’s when he sees a gorgeous women sitting at the counter having lunch who just happened to glance at him for a moment. Normally he would never approach a woman like this because of the obvious rejection he would suffer.

Instead he does the opposite and walks up to her and states the truth emphatically.  “Excuse me, I just happened to notice you just looked at me.” he began chatting with her. He went on to simply state that he’s a short, bald, out-of-work guy who still lives with his mom and dad. What do you think the result was? She immediately introduces herself to him and decides that she wants to go out with him. Finally he has success!

Later, George uses this same technique of “do the opposite” to land himself a sweet job with the New York Yankees. During the interview, instead of kissing up to Owner, George Steinbrenner’s rear, the way everybody else probably does, he instead tells his potential new boss how much the team stinks, and why Steinbrenner’s every decision has been flat-out dumb. “Hire this man immediately!” Steinbrenner screams. “That’s the kind of attitude we need around here!”

So here’s my point. Every time George did the opposite of what he would normally do, what logic and common sense would dictate, and what everybody else would probably do, he experienced “quantum leap, life changing, success.”

Change What Isn’t Working

You know what? In many ways this thinking is the same key to being a successful plumbing, electrical or HVAC service contractor.  It just makes sense that the best decision to make in order to increase your sales, cash flow and profit, plus get new, happy clients to call and refer you, is the EXACT opposite of what your competitors are doing now that brought you to this point.

For instance, let’s say that you see your buyer could really use an extended service plan that you offer. You know they currently neglect their system and you want to see if they would have any interested in hearing about it. Let’s look at the different ways you could approach the buyer with this.

The Way Everybody Does It – Ask if they WOULD be interested

YOU: Hey Bob, would you like to hear some information about our extended service plan? It offers some really great benefits that would be perfect for you.

THEM: No, I appreciate your offer, but not right now because money is tight.

The Way “Opposite George” Would Do It – Ask if they WOULD NOT be interested

YOU: Hey Bob, I noticed that you chose not to purchase the extended service plan even though it would have saved 15% over the past year. I just want to confIrm that even though it would have paid for itself last year, you have no interest in this?

THEM: What are you talking about? I never even heard of this. Could you fill me in on what this program is all about? (Success at last -You have created interest by doing the opposite!)

The Paradigm Has Shifted

As you can see by this small exchange above, George was actually genius in his approach. Doing the opposite can make a big difference. How can this approach apply to lowball competitors? Can it really apply to buyers who want cheap prices? Will it change your thinking about your marketing, managing and presentations? In short, you bet it will. This principle applies to every part of our business.

Can you really argue with the simple truth that if you follow along and simply do what others who struggle are doing, you will get exactly what they are getting? Why not pull a “Costanza,” do something different and join us along with the most successful contractors in the country?

There are contractors who are actually MORE profitable in this down economy as they pick through the bones of contractors who have failed. That’s right, after the dust has settled they now attract the ex-customer and ex-employees of those companies who are bleeding or who have fallen.

Ultimately where there are problems there are opportunities. Isn’t that why you started a business in the first place? I hope to see all of you this spring who are bold enough to take action and walk the road toward success.

Is Gratitude Part Of Your System?

Without a doubt, life today flies by at record speed and many of us get overwhelmed around the year-end holidays.

I wonder if many people in sales business have thought much about the people who are at the center of whatever success they have achieved. I know I recently have.

Those thoughts of kindness by everyone who has helped me have really stirred some great emotions inside of me.

Not Everything Has To Be 2.0

The principle of giving thanks is nothing new but it is always in style and appropriate. If you’re not sure whether thanks is merited then I would err on the side of doing it anyway just in case it is.

Here are some groups of people you could call to thank.

1. Clients – Of course this is obvious but as a twist, don’t just thank those who you like the most or who spent the most money. Why not call a few of the people who rejected your proposal as well. Why? Well, you could thank them for the lessons you learned as to why you did not sell the job and let them know that the experience in service them was valuable to you. Who knows, they may keep you in mind for the next project.

2. Competitors – Yes, pick up the phone or drop in to say thanks to them for providing you the motivation to get up everyday and try to outsell them. Let them know you don’t take losing any jobs to them personally. In fact let them know just how much more determined you have become to compete harder. Also let them know that you intend to outsell them in the future. This public proclamation will put the pressure on you and them and make this next year more fun than ever.

3. Your Family – They are the ones who allow you to put in the long hours and late evenings in order to reach your goals. Let them know that you understand the price they have paid in terms of quality family time so that you could reach your dreams. In a quiet moment talk to your wife and each child in your household and let them know how much their patience and understanding has meant to you.

4. Anyone else – Randomly thank anyone you run into who you feel is performing a great service. Let the warehouse guy or the waitress know how lucky their companies are to have such great, dedicated people working for them. Also let them know that you personally feel honored to be serviced by them as well.

Where Do You Begin?

Easy just pick up the phone or stop by and say this:

“I just wanted to call to let you know how fortunate I feel to have such a great (client — competitor — family member) like you. Not many people would (fill in the blank) like you have done for me. I just want you to know I am honored and thankful to have you as my (client — competitor — family member).”

For your family and closest friends tell them you give hugs not handshakes and then reach over and give them a big ole bear hug. Also remember that the holidays are a great time to surprise the people you know that you may have forgotten about.

As you approach the next holiday, remember that in giving gratitude to people that you will get as much from this gift as you are giving. In fact, you will probably get even more. Well, enough talk. Get out there and get started there is no shortage of people who help you everyday. I know this is a lot of work but believe me it will be a labor of love.

By the way, thank you for reading this entire article of mine. I am obviously very fortunate to have you as an audience. Not a day goes by where I don’t feel grateful to have you reading, listening or watching my thoughts. See what I mean? Let the thanking start right now.

Engine Or Anchor?

I love the use of analogies. One of the prime examples I use is a owner of a contracting company as being the captain of a ship. As the leader you may find yourself heading towards “stormy business weather.” This storm is approaching as your sales revenue is lower than your overhead, field labor and material costs can substantiate. When this happens, you start to take on water. (Go into debt) Soon the whole ship is in danger of sinking.

When you finally wind up in the worst part of the storm the telltale signs are all around you as the captain. The rain of phone calls from vendors looking to collect on what you owe or the lightning of your having to consider a loan, line of credit or even take money out of your own pocket, just to make payroll this week are just a few of the signs that your ship is indeed in trouble.

All Hands On Deck

As the captain it is your duty to get your ship and the crew out of here and into clear waters and blue skies. “All hands on deck!” you scream. As you look around your “ship” you see that some of the crew members are not pulling their weight while others are doing all they can to help. And that is the problem in a nutshell.

Take a walk around your company and look at each employee. Sure when the “sales weather” was great, you hardly noticed some of the crew taking a break on the sun deck while other rowed away.  Now, when it is slow, there is no room for slackers. EVERYONE must pull the oar and get us out of the storm. Ask yourself while examining each person in your company, “Is this employee an engine or an anchor?”

Your Instincts Are Evidence

I really believe that an owner or manager “instinctively” know when an employee is an “anchor” that is holding the ship back from sailing into clear waters. I have to tell you that I believe that instincts are over-rated when it comes to management. I believe that instincts are really the feeling you get when faced with small bits of hard evidence that the manager or owner has observed.

Some of the hard evidence I am talking about is an employee who…

• Routinely comes in late or goes home early
• Shows up absent with no notice or phone call
• Doesn’t bother to wear the “whole” company uniform
• Rarely brings in enough revenue to even cover their own wage
• Specializes in creating call-backs
• Blows off company meetings
• Talks bad about other employees behind their back
• Shows no respect for their truck
• Bring more excuses than results

Anchors Away

The answer to your problems is to release all anchors now and activate all engines to propel your ship.  I always framed this problem as an opportunity. After all someone who is not happy following all your “silly rules” would be happier an more productive working somewhere that excellence doesn’t matter. Once you decide to not tolerate poor performance you will find it easy to steer the course to beautiful, sunny and profitable waters.

A Non-Litigious Holiday Party

By Elizabeth R. Ison, Esq.

With another holiday season approaching, companies nationwide are busy planning parties. Holiday socials are longstanding company traditions to thank employees and celebrate annual accomplishments. They can also be a breeding ground for employer liability — especially when alcohol is served.

A 2000 survey conducted by Vault.com found that 44% of employers had to reprimand an employee for behavior at a company holiday party. A 2010 poll by HR firm Adecco corroborate these findings: 40% of people surveyed saw or suffered a major indiscretion at a work-sponsored holiday event and 14% knew someone who was fired for bad behavior at a company holiday party.

Employers have a duty to their employees to prevent harassment, discrimination and other unlawful behavior from occurring. Employers also have a duty to prevent foreseeable risks to their employees and third parties. Holiday parties, whether onsite or off-site, should be treated as extensions of the workplace.

Chief Complaint - Sexual Harassment

Every year countless sexual harassment complaints are filed based in part on behavior that occurs, at least in part, during the annual holiday party. Employees may be less careful at a holiday party than they would be in the office. The celebratory, relaxed environment combined with alcohol causes inhibitions to fade and revelry to ensue.

In Russ v. Van Scoyoc Associates, Inc., 122 F. Supp. 2d 29 (D.D.C. 2000), several people became very intoxicated during a holiday office party. After the party, some employees went to another bar to continue socializing. A supervisor made sexually explicit and offensive remarks to plaintiff, telling her that he admired her breasts, that he wanted to have sex with her, that he wanted to perform oral sex upon her, and that she could make more money working at Hooters than at the company.

A holiday party “after party” was the source of Ashlee Ilewicz’ recent complaint against the Los Angeles law firm Glancy Binkow & Goldberg (L.A. Superior Court 2010). The lawsuit alleged that, at the conclusion of the firm’s holiday party, founding partner Glancy took employees to a “bikini bar,” paid for their admissions and bought a lap dance for at least one employee.

What Constitutes Sexual Harassment?

Generally, conduct must be “severe and pervasive” to constitute sexual harassment. An isolated comment at an office party will not usually meet this test. However, when office party conduct is coupled with other harassment, a hostile work environment may result. For example, in Stathatos v. Gala Resources, LLC, No. 06 Civ. 13138 (S.D.N.Y. 2010), during an office holiday party, a client of defendant became aggressive toward plaintiff, grabbed her repeatedly, and chased her all night. When plaintiff approached defendant at the party for help, defendant teased her instead. Plaintiff had also been subjected to various sexist comments and incidents in the office. The Court found that these facts were sufficient to overcome defendant’s motion for summary judgment.

Similarly, in Carver v. Waste Connections of TN, Inc., No. 3:10-cv-00501 (E.D. Tenn. 2006), plaintiff claimed she was sexually harassed by her supervisor after a holiday party at that supervisor’s home where a group gift exchange occurred. Some of the gifts were of a sexual nature, including edible underwear and a blow-up doll. While this conduct alone may not have risen to the level of severe and pervasive, when coupled with other workplace conduct it was sufficient to overcome a motion for summary judgment.

Sometimes a one-time physical occurrence is so egregious that it alone can constitute sexual harassment. See, e.g., Barrett v. Omaha National Bank, 584 F. Supp. 22 (D. Neb. 1983). Physical incidents are all too common at holiday parties. In King v. Board of Regents of University of Wisconsin System, 898 F.2d 533 (7th Cir.1990), an assistant dean followed plaintiff into a bathroom at an office holiday party, saying he “had to have her” and “he would have her.” Despite plaintiff’s protests, he kissed and fondled her. While there was other conduct at issue in this case, this conduct on its own could be sufficient to support a sexual harassment claim.

Egregious conduct also occurred in EEOC v. Rose Casual Dining, L.P., No. 02-cv-7485 (E.D. Pa. 2004). At the company holiday party, a manager approached plaintiff and fondled her backside while commenting on how good she looked. He then removed her nametag and dropped it down her cleavage. The manager continued to pursue plaintiff throughout the night, grabbing her and making sexual comments towards her.

Alcohol Contributes To Mayhem

It comes as no surprise that alcohol is a contributing factor in the vast majority of holiday party sexual harassment claims. Although the law only prohibits unwelcome sexual advances, alcohol skews the judgment of harassers and victims alike, and conduct that seemed acceptable during a period of intoxication may be unacceptable in retrospect.

Alcohol-Related Injuries are Common

Every December, anywhere from 2,000 to 3,000 persons are injured or killed in California in alcohol-involved collisions. A 2000 Vault.com survey found that 44% of respondents became drunk at a work holiday party. In Adecco’s 2010 poll, 20% of respondents reported drinking too much at a work holiday party. It does not require great imagination to picture an employee overindulging at a holiday party, getting behind the wheel and causing physical harm.

Liability to Nonemployee Third Parties

California employers may be liable to third parties for damages caused by drunken employees. Liability is imposed by Cal. Civ. Code § 2338, which incorporates the common-law doctrine of respondeat superior. Respondeat superior imposes vicarious liability on an employer for the torts of an employee acting within the “scope of employment,” whether or not the employer is negligent or has control over the employee.

California has allowed nonemployee third parties to recover from employers for the tortious conduct of employees, where the tortious conduct was a foreseeable risk of the employee’s consumption of alcohol occurring after ordinary working hours but within the scope of employment. See, e.g., Harris v. Trojan Fireworks Co. (1981) 120 Cal.App.3d 157 (complaint against employer survived demurrer where it alleged employee became intoxicated at company holiday party and caused automobile accident.)

Where social or recreational pursuits are endorsed by the express or implied permission of the employer and are conceivably of some benefit to the employer or, even in the absence of proof of benefit, if such activities have become a customary incident of the employment relationship, an employee engaged in such pursuits after hours is still acting within the scope of his employment. “It may be inferred that the party was for the benefit of the employer.

It may be argued that the purpose of the party was to improve employer/employee relations or to increase the continuity of employment by providing employees with the fringe benefit of a party, or to improve relations between the employees by providing them with this opportunity for social contact.” Harris 120 Cal.App.3d at 164, referencing Boynton v. McKales, (1956) 139 Cal.App.2d 777, 789.

In Childers v. Shasta Livestock Auction Yard (1987) 190 Cal.App.3d. 792, an employee got into an accident on the way home after drinking at work with a supervisor’s permission. The appellate court found the accident was foreseeable. “[The foreseeability] test has been applied to employees who got into car accidents on the way home after drinking alcohol at work. Courts have found a sufficient link between the drinking and the accidents to make the collisions neither startling nor unusual, and thus foreseeable under respondeat superior.” Bussard v. Minimed, Inc., (2003) 105 Cal.App.4th 798, 805.

Possible Workman’s Comp Injuries

Ordinarily, employees who are injured in the “course of employment” are entitled to workers’ compensation benefits. Cal. Lab. Code 3600(a)(9) excludes from coverage those injuries “arising out of voluntary participation in any off-duty recreational, social or athletic activity not constituting part of the employee’s work-related duties, except where those duties are a reasonable expectancy of, or are expressly or impliedly required by, the employment.” However, as discussed above in the respondeat superior context, employees can successfully assert in some cases that attendance at a company holiday party is within the course of employment and not truly a voluntary, off-duty activity.

One of the rules the courts have fashioned to aid in determining whether an injury occurred in the course of employment is the “going and coming” rule. This rule “prohibits compensation for injuries received by an employee while traveling to and from work.” Parks v. Workers’ Comp. Appeals Bd. (1983) 33 Cal.3d 585, 588. However, the going and coming rule itself is subject to exceptions. For example, the California Supreme Court allowed the wife of an employee to seek workers’ compensation benefits for her husband’s death after he attended the office holiday party, got drunk and collided with a railroad signal pole on the way home. McCarty v. Workmen’s Comp. Appeals Bd. (1974) 12 Cal.3d 677.

Planning Tips

Given the myriad of risks facing employers, the safest option is to forego the holiday party altogether. But, for the most part, employers still want to have holiday parties. Employers should therefore consider the following options to reduce the risk of liability:

Consider an alcohol-free function in light of the extremely high coincidence of alcohol consumption and holiday party litigation.

If you plan to offer alcohol, consider an off-site function. Have a bartender to monitor consumption and check identification. Instead of an open bar, have a cash bar. If you have an open bar, hand out a limited number of drink tickets to attendees and close the bar well before the party ends. Make certain there are plenty of non-alcoholic drinks available and serve plenty of food. Consider providing transportation such as a shuttle service.

Remind Employees Of Their Responsibility

Employees, and especially managers, should be reminded of company policy and expectations and that normal workplace behavior and conduct is expected at the holiday party. Managers need to know that the company expects them to set an example of professionalism. Remind employees of the company’s alcohol and substance abuse policy.

• Re-publish the sexual harassment policy in the days before the holiday party takes place. Attach the policy to a memorandum that reemphasizes the company’s zero tolerance policy for harassment. Make sure everyone knows how to report unwanted or unwelcome behavior. Make sure all supervisors have received sexual harassment training.
• Consider making the office party truly voluntary and avoid all “work- related” activities such as employee recognition and client/customer attendance. Otherwise employees may think the event has a business purpose and attendance is required.
• Consider inviting spouses and significant others. This may reduce overindulgence and incidences of sexual harassment.
• Do not pay employees for attendance at company party.
• Take a close look at the venue and the entertainment provided to avoid a sexually charged atmosphere.
• Consider holding a midday lunch party instead of a late afternoon, evening or nighttime party

Editors Note: Our thanks to Elizabeth Ison and the Ison Law Group for their kindness in allowing us to post this article.  If you have more questions or would like more advice you can contact Elizabeth directly at www.theisonlawgroup.com

Web Marketing 2.0

(Phoenix, AZ) — America’s top service contractor marketing expert, Adams Hudson, will share his latest developments about web marketing during for the first annual Sales, Profit & Marketing Summit, (spmsummit.com) Feb. 8 to 10, 2012, in Phoenix, AZ.  Hudson will be the key speaker for the Web Marketing 2.0 seminar, where he reveals the latest and most effective methods on how to use email and the Internet to capture new clients.

“I have severely restricted my speaking engagements over the years to focus on my business, but when Joe and Julie Crisara asked me to speak at the Sales, Profit & Marketing Summit (spmsummit.com), I had to say ‘yes,’” said Hudson. “After more than a year of testing and development, we’ve created a near fool-proof way to improve web marketing for contractors that generate more leads and convert to more sales.

“Summit attendees will be given access to tools that create an online lead avalanche, without having to rebuild their website, know any code, or hire anyone. It’s truly turnkey simple.”

Unfiltered Marketing Info

“We’re very excited for service contractors,” said event organizer Julie Crisara, co-founder of contractorselling.com (www.contractorselling.com) and the creator of the SPM Summit. “Finally HVAC, plumbing and electrical service professionals will get the unfiltered information they need to increase their sales, marketing and profit results directly from the best marketer in our industry.”

Hudson, president of Montgomery, Ala., based-Hudson Ink (www.hudsonInk.com), also specializes in direct response advertising. His ads helped to produce an astounding $410,000,000 in sales for contractor clients in one year. National recognition for his results-oriented marketing campaigns resulted in Hudson winning the Dan Kennedy National Sales Letter Contest, out of a contestant pool of 110,000 potential worldwide entrants, resulting in the prize of a new automobile.

Nationally Recognized As the Best

He is the national marketing partner of ACCA, PHCC, QSC and ECCN and a featured monthly columnist for The NEWS, P&M Magazine and Contractor Excellence. He has also written numerous books on contractor marketing, including Contractor Marketing Secrets Your Competition Doesn’t Want You to Know, The Marketing PowerPack Series, The Web Marketing PowerProgram, Competitive Intelligence, Customer Retention Goldmine and the CSR Performance Handbook.

“Our goal for the Sales, Profit & Marketing Summit is to exceed the expectations of attendees, which is a philosophy we firmly live by with everything we do as a company,” Crisara said.

To view the speakers lineup or to reserve a ticket, contact Julie Crisara at 877-764-6304, julie@contractorselling.com or visit www.spmsummit.com.

Watch this video of one of my all-time favorites Michael Gerber who wrote wrote the book “The E-Myth.”  If you run a contracting business, I would highly recommend the book.

Consumer Shortcuts

Let’s face facts.  Most of us take shortcuts when making a purchase that we are unfamiliar with.  For example when we buy a flat screen television, new car or purchase a service we rarely use turn to price and reputation as a “shortcut” to tell ourselves about the quality of what we are purchasing. For instance if i said I was selling a car for $95,000 most people would envision a Mercedes Benz or Lexus loaded with all the trimmings.

Does this same effect happen when people buy hvac, plumbing and electrical service fron our company.  Well I guess that depends on how your company positions itself in the market. Are you perceived as high end or a budget?

Price/Quality Relationship

In an article in the January, 2008 Economist magazine, a study was cited that was done by Dr. Antonio Rangel of the California Institute of Technology. Rangel found that if people are told that a wine that they are tasting is expensive, the perception in their brain evolves to increase the quality of the wine they had consumed based on nothing other than higher price meaning higher quality.

Dr. Rangel gave his volunteers sips of what he said were five different wines made from cabernet sauvignon grapes, priced at between $5 and $90 a bottle. He told each of them the price of the wine in question as he did so. Except – of course – that he was fibbing. He actually used only three wines. He served two of the same wines twice at different prices.

Take a Sip

When asked which glass tasted better, they chose the higher priced one rather than the cheaper one. However, this was only their opinion. How do we really know if the brain has perceived a higher quality? As stated in the aforementioned article, Dr Rangel came to a conclusion by scanning the brains of 20 volunteers, while giving them sips of wine.

He used a trick called functional magnetic-resonance imaging, which can detect changes in the blood flow in the parts of the brain that correspond to increased mental activity. He looked, in particular, at the activity of the medial orbitofrontal cortex. This is an area of the brain that previous experiments have shown is responsible for registering pleasant experiences.

The Results Are In

The results of the study showed that the parts of the brain associated with pleasure were stimulated more by the wines thought to be higher priced. (Remember, they were actually the same wines.) This wasn’t just novice wine drinkers that made this judgment. Experienced wine connoisseurs were tested as well.

I think many of us have instinctively known this for years. But, in this study, it is proven science. Essentially, the finding was that higher prices have a real impact on perceived quality (which will then influence sales) rather than people just saying they think it’s better (which will not have an influence).

My interpretation of this study is that it shows that lacking hard definitive information about the quality of a product or service, the consumer searches for other sources of information to determine the quality of one thing over another. In this case, the price of the product itself created the real perception of higher quality.  Are you a quality contractor? If so, price yourself like one.

Will Lower Prices Sell More?

It’s not hard to find contractors who think they are losing jobs because their competitors have a lower price than them.  How many are losing jobs because they lower their price instead of standing firm?

That is a question that is much harder to answer.  Especially since most people do not want to face the truth.  The truth is that you will lose far more sales with a lower price or worse yet, by lowering the price you have already given than they ever will by having a higher price than your competitors.

5 Reasons Why Lowering Your price Could Cost Sales

1. You Look Like Your Competitors – Do you really think that having the lowest price will make you stand out? Every other salesperson says the same thing. Everyone claims to have the lowest prices because they think it will get the customer’s attention.  Even if it did make you stand out, it would be for the wrong reason – the very wrong reason of offering a watered-down version of what people really want.

A higher price with a more premium package is really the only way to look different from your competition. Offer something better that no one else can offer. A lower price just isn’t it.

2. It Takes Focus Off Your Customer - Price does not determine the sale; your customer does. That means that your attention should be completely on them. Everything you do should help you understand and connect with your customers so that you will discover their motivation for buying.

Customers search for a product that is the best solution to their problem. They understand that a product cannot be the lowest priced and still be the best. Making the sale requires that you find the best solution, not the cheapest.

3. It Decreases Perception Of Your Value - Before every purchase, a customer considers, “Is this worth it?” The answer depends on the value of the product, not the price. If they envision themselves using and benefiting from the product, the answer is yes and the purchase is made.

Without value, a product won’t be sold at ANY price, so don’t limit your customers to a dollar amount. Establish value by helping them imagine how useful and enjoyable your product could be in their daily lives.

4, It Brings Your Integrity Into Question - Customers will not buy from you if they don’t trust you; and they definitely won’t trust you if they feel that your price is dishonest. Lowering the price of your product suggests your product was not really worth what you were asking for to begin with. They will believe you are padding your price!

Never lower your price because you know that your service is worth every penny. Have confidence and enthusiasm for your own product. If you believe in what you sell, your customer will too.

5. It Leads To Buyer’s Remorse - Customers want to feel confident in their purchase and know that they received the best value for their money. Lowering the price for your customer puts them in a situation where they feel haggling is necessary. They will question their purchase and wonder if they should have pushed you harder to lower the price.

Even though it seems you saved them money, they will probably feel ripped-off. This will make them uncomfortable with your business and less likely to come to you in the future.

A Limited Strategy

When you lower the price of your product, you are limiting your sales strategy to a dollar amount. Price becomes a dominant part of the conversation ONLY because YOU have made it one.

When was the last time you heard your price was too low? This is probably the first time. We can assume that in all our sales interactions, odds are that – at least SOMETIMES – our price MUST be too low. If that is the case and you have never heard this until now, then I am glad you are finally enlightened.

Focus your attention and sales presentation on what really matters: the customer, the value, the uniqueness of your company and your product. When these things are put first, price will always come in second.