How to Get Prospects to Buy Remodeling Services When the Investment Cost is Higher Than the Return
One of the selling points of a home improvement project is its projected return on investment. But let’s say you’re talking to a potential client and you’re making a presentation for a home remodeling project. What if the client points out that he can’t get a 100% or more return on his investment? How can you still get him to buy your remodeling services? Read on for some strategies that can help you get them to buy.
Your presentation should focus on the benefits they can get right away
- Focus your presentation on the benefits that the homeowners will get once the remodeling project is done. For example if they’re considering an attic conversion, help them feel that the investment is worth it because they can get an extra living space and maybe use it as a bedroom. It’s surely more affordable than a new bedroom addition.
Treat the future return on investment as a bonus
The real returns on investment are the benefits they’ll experience as soon as the remodeling project is done. That’s what they’ll be paying for. As soon as they’ve realized that the benefits make the cost worth it, you can then tell them that as a bonus, they can recoup a good part of their investment when they sell their home in the future.
Of course, it wouldn’t hurt if you’ll mention it as if selling their home in the future will be out of the question with all the benefits that they’ll get to experience and love.
Condition the mind of the prospects to be appreciative of the price
What problems are going to be solved with the remodeling project? Will it solve the problem of lack of space, outdated fixtures, damages, etc.? Condition their mind in such a way that their investment is to solve these problems. Prospects will be more appreciative of the price when they’re conditioned to think that it’s going to solve their problems.
Focus on you as a remodeler
The National Association of Home Builders conducted a survey in the 70s that showed that price was 7th in the list of considerations of homeowners purchasing a new home or remodeling an existing one. The 1st on the list is the reputation of the company.
Sure, that survey was more than 4 decades ago, but it’s hard to think of homeowners not giving the company’s reputation prime consideration in their decision. Besides in a 2013 survey conducted by Houzz, 81% out of 100,000 respondents said that good reviews and recommendations are very important. In the same survey, 70% of the respondents said that expertise in their field is very important.
On the other hand, only 8% of the respondents said that getting the lowest cost option is very important.
Help them invest in you and not on your services. Point out to your credentials. Showcase your portfolio. Share the feedback that you’ve been getting. Address their fears.
Give them a detailed quote
You can’t just quote them without showing them what they’re going to get. Help them understand what they’re going to get. If they see a comprehensive list of needed products and services, they’ll be more open to the cost.
Help them lower the cost
If the cost is really important to them, you can help them lower the cost but not to the point of cutting into your profit margins. For example in a kitchen remodeling project, you can recommend painting the backsplash instead of tiling it. They can save thousands of dollars without you compromising your margins. It’s very different from lowering your overall fee and still sticking with tiling the backsplash.
Hopefully, these strategies will help you sign up prospects even if they’re having second thoughts due to the ROI that’s lower than the investment cost. To get a better understanding of the expected ROI of remodeling a home, visit Contractor Quotes to see the infographic on the topic.
Guest Blogger: Thomas Jepsen is the owner of the website Contractor Quotes which helps homeowners save time and money by putting them in contact with screened contractors in their area. Additionally, Contractor Quotes provides an array of articles on different kinds of home improvement.