Dealing with "Tire Kickers"
Friday, March 02, 2007
You inevitably have had to deal with "tire kickers." The potential clients who don't have the money for a project or who may only be concerned about getting the best price. They waste your time trying to get free estimates or insanely low bids, only to not go with your company because you care about quality.Contractors have to deal with these types - whether they come from your yellow pages ad or from an online lead service or even a referral. I've heard it said that more than half of the tire kickers and price shoppers you talk to end up being people builders and remodelers would kill to have as a client. But, you've got to spend some time to weed out the other half.
For every client price shopping you, you'll have another ready to hire you and have the job done right. You need to see it from their point of view. It's not like they are walking into a store to buy a product with a fixed price tag. You're an unknown. They've heard just as many horror stories about unscrupulous contractors and con-men as you've had to deal with tire kickers.
Because there are different levels of service, quality in materials, and even costs based on your part of the country, a homeowner doesn't want to get taken for a ride. If they've never had a roof replaced or remodeled their bathroom, they don't know what it costs for sure so they're out to get the best price.
The first thing you should do is find out who the decision-maker is. Either through indirect or direct questioning. If you're not dealing with that person, it could be someone to avoid. Next, ask about financing. It's not smart to be accusatory here, but do it in a way that lets them know you want to help or know of a good resource. No financing could be a trouble sign.
After this, you'll want to dig a bit into the homeowner's situation. It would be easy to start out with "What's your budget?" Easy, but not smart. Remember, they don't know you and they don't trust you. Why should they? If you ask - - right away - - "What's your budget?" they may be willing to spend $40,000 but they're not going to tell you that. They're going to tell you $15,000 just to see the expression on your face or hear the hesitation over the phone. Their fear is that if they give you their actual budget, you'd say this was fine and you'd end up charging them $50,000 or $60,0000 by the time any surprises were discovered during the process. They are worried at best and afraid at worst.You want to ask the homeowners, "How long have you been in your house and how long have you wanted to do this project?" Get them talking about their goals, even if it's just during a fifteen minute phone conversation. Determine their wants and needs. Ask, "When do you want to start?" And, at this point, you'll want to find out, "How many other bids are you looking at?" It's good for them to shop around but you don't want a price shopper who doesn't care about your level of quality.
Finally, you want to talk budget. Tell them straight out that budget is an issue with you and you don't want to waste the time of either party. Let them know that you provide a certain level of quality and you need to make sure if you both will be a good fit. Ask them what they can afford to spend.
If you don't like the answer you get, consider the other answers you've already been given before you end the conversation. The other questions and answers will have triggered your instincts on whether or not they're are potential clients for you. If you feel they may be turned, once they realize everything involved and that they are capable of paying for your services, you should spend the time to educate them on what you can do and what all is required.
RELATED POSTS:
The ABCs of Closing
Negotiations, Influence and Your Business
Top 7 Sales "Killers"
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