Contractor Update

You install a great product. Or your team is the best in the business. Perhaps you are the greatest contractor of all time. And you know it. Is that a bad thing? No. But letting others know it can be. When you are selling your company to a potential client, certain traits can turn people off.

Having too much confidence during your sales pitch can lead to a no-sale. Overconfidence can make clients feel like they're being over-sold and talked down to. Sure, you know the industry, but when it is forced down throats, it will make potential clients back away.

What worked before will work again. That mantra can kill your sales pitch. Why? Because times and people change. Whether the economy is up or down, or the latest trend is in or out, the needs of the people can and do change. You need to be aware that what worked in the past may not work now.

Yes, you may work with the best products or materials in town, but your future customer doesn't need to be oversold. Let them know how these products will make their lives better, save them money, or help the planet. Don't try to convert them to become missionaries. It's too much for most to handle. 'What's in it for me' is all they care about.

Avoid these dysfunctional behaviors when you're selling and you'll close more deals.

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Labels: Sales Advice

As a contractor, you can never have enough sales advice. Nearly every time you meet with or talk on the phone to a prospective client, you have the chance to earn more revenue. Being equipped with sales tools and techniques is how you land more contracts.

Sell the Sizzle
When you're talking with a client, you usually find out right away what they want. They want to remodel the kitchen, build a new deck, or install an electric heat pump. But it's really important to find out what they need. People make decisions based on their emotions. When you find out what is driving their decisions, you can turn the tables and really "sell the sizzle!"

Ask your potential clients open-ended questions to get them to open up and spill all you need. For example, an innocent question like, "Why is that important?" or "What does it mean to you?" can really allow clients to talk about makes them passionate. To explain what's driving them to talk to you at all.

Simply saying they want a new garage door doesn't tell you that the client is competing with the neighbor across the street. Knowing this can give you the ammunition to say things like, "You want to really show up that guy? Take a look at this..." as you bring out a few pictures of the latest and greatest in garage doors (or whatever product your business works with.)

Curiosity Won't Kill This Cat
Be curious. Curious lets the potential client see that you care. People love to talk about themselves, talk about their passions. The more curious you are about their needs, the more they will be willing to give you everything you need to close that deal.

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Labels: Sales Advice

Risk is more than a great board game that takes way too long to play. Risk is something your clients face when making decisions about their project. Risk is a major influence for people.

It is why some people choose a familiar company or product over an obviously better choice. When you're explaining your services to clients, keep the risk factor in mind. They may not pick your company because it involves taking a chance.

How Do You Overcome Risk?

• Try to take risk out of the equation. Whenever possible, provide a guarantee. Money back guarantees or satisfaction guarantees go a long way to letting clients feel more comfortable taking a chance on you.
  

• Allow people to try out your products, if you can. A trial or test of how a product works or how a material looks over a period of time can do wonders. You might even be able to promise them that you will remove or replace a product for free if they're not happy.

• Another option is to prove your experience. Risk goes away when people are convinced they are dealing with an expert. Provide testimonials, before and after photos, references, awards, associations you may belong to, and more. If they can see you are a specialist or good at what you do, you have a better chance of closing the deal.

Labels: Sales Advice

Communication is your friend. When you are selling your services to a potential client, always keep in mind that what you know isn't always what they know. You may forget to include all the great details that would really sell your company and land you the contract.

For example, you might make a statement like this, "We provide outstanding service to all our customers." It's a great thing to say to people but if you stop there, you're not communicating. Why is your service outstanding? What do you do to make it so great? Do you do something different from your competitor? Talk with the potential client, don't talk at them. You know that you offer 24-hour emergency service or that the products you install have a 10 year warranty. But these people don't.

"We have X years of experience in this industry." Doing what? This is a great jumping-off point but it has to be taken further. Break down those years and share the type of work you've done and demonstrate your passion for you've been in this business for so long.

"I'm confident we'll do this job right." I'm happy for you. But communicate with me why you're so confident. Do you have new state of the art tools? Do you use only the best materials? Does everyone on your team have 10 years on the job? Make them confident.

"We do this job better than anyone else." Very good. But... you know what's coming next. Give us the details, right? Right. Let them know why you're the expert. Tell them what they need to know and maybe what they don't need to know. If they see (and hear) you are capable, they will sign on the dotted line.

Labels: Sales Advice

Last week, we talked about the non-stop sales pitch mistake. This week, we talk about when contractors stop too early. Failure to follow up is a common sales mistake of which many contractors are guilty. I know that "follow up" is a buzzword used far too often in most industries. But a sales follow-up is very important to maintaining your business.

What is a follow-up? Following up means continuing the conversation with your client. If you promise to call back, then you should always call back. If you schedule an appointment, then you show up for the appointment. But following up goes beyond good manners. A follow-up means calling your client after the work is complete to check on job satisfaction. Taking the time to call means a lot to people and could mean repeat business. Going another step further, a simple follow up call to ask for referrals will mean more work in the pipeline for your business.

If you have a sales call or presentation that does not lead to a contract, let the people know you will be following up in some way. This gives you a second chance to make the sale and close the contract. Giving up on the first (second, or third) try may not be the most practical decision. By getting back with these potential clients, you're keeping your business name fresh in their minds. That is how your company can go to the next level.

Labels: Sales Advice

All contractors are salespeople. They only want to be contractors, but sales is part of the job. When giving a sales pitch over the phone, or in person, it is important to make sure you make no mistakes. With an economic slowdown (some say "recession") in the works, every lead is important to every contractor.

One major sales mistake that plagues many contractors is when one must go into "sales mode" and start making that pitch to prospective clients. Sales mode usually involves a rambling off every job detail and cost in a non-stop monologue. It can be tedious or even frightening for some to have to act as a salesperson. So many try to get through the pitch as fast as possible to get it over with.

The key to overcoming this sales mistake is to ask more open-ended questions. First, by asking for more details, you'll be pre-qualifying the potential client. You'll also be finding out exactly what it is that they want. By knowing more about the person, you'll be able to tailor your pitch to make sure you meet their precise needs. Also, you'll be forced to slow down your sales presentation which will make it more effective than the non-stop "sales speak" assault.

Questions are the necessary ingredient to make better pitches and close more contracts.

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It Costs Too Much!

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Labels: Sales Advice

Any talk of sales advice always gets the term"know your customer" thrown about a lot. Here's some practical advice that can help you understand who is paying for your services and why they're doing it. The more you know, the better the chance you have of getting the job.

There are driving forces that will cause people to hire you. These sales triggers help satisfy a need your potential client has. To get to know these clients, you need to ask yourself several questions. By knowing the answers, you can effectively sell your services and land that coveted contract.

Everyone has triggers to make them hire your company. The needs that most apply to you include: saving money, saving time, improving quality of life, increasing safety, and making life easier. If you can craft your sales presentation to address these needs, you can close the deal.

• How do your services save them money?
• How do they save them time?
• How does your service increase their safety?
• How does your service help their quality of life?
• Can you make their lives easier with your products and services?

These are not the only triggers and you can continue to ask yourself questions to come up with more answers. Those answers will be used in everything you discuss with potential clients. You'll address subconscious needs and desires before they even bring them up. You'll close more sales and your business will grow.

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Labels: Sales Advice

When it comes to selling your services and products to potential clients, there is a tendency to want to give them as much information as possible. The rationalization is that if they know a lot about what you can do or the products you install then they will hire you.

The problem is, in most circumstances, that too much information can literally stop a client in their tracks. A recent study by researchers at the University of Iowa showed when people were given a lot of information about a product they were less happy about it than those given fewer details.

The research showed that once people made a decision to buy a product, they want to like the product and justify any decision to keep it. It's part of the sales idea of selling the sizzle. They just want to connect with the emotional aspect of a new granite countertop or hardwood floors. The client may not want to hear about every little advantage or product specification.

People are bombarded by so much information these days that it might not be best to overload them during a sales presentation. Life is fast-paced enough, for your clients, without having to try to straighten out all the details on a remodeling or home repair project. Also keep in mind that some clients may want a lot of information and can handle the overload. It's good to have "leave behind" materials on the products or services you provide for those who want to digest everything they can.

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Labels: Sales Advice

Overcoming objections is a fact of life when selling your services and products. One major object that every contractor hears is that it "costs too much." No matter what service you offer, there is usually a significant price tag associated with it. It can be a lot for any potential client but it does not always mean you won't be able to get the contract signed.

What do you do when you hear those dreaded words - that it costs too much? There are several things you can do to get around this complaint. The first thing to consider is your price may be fine but that you have not provided enough value to justify the cost. Acknowledge the concern ("I understand. Quality work always costs more.") and pile on additional benefits to show the potential client the cost is just right.

When you hear the complaint for a second or third time in your sales pitch, you could be dealing with a situation. Use this opportunity to find out more about their situation. It could be that they are not ready for your services. But dig a little to make sure there might still be an opportunity for you to get the job. Use this chance to also find referrals from friends and family.

Think about starting off your pitch with the fact that your services and products are very expensive. By the time you've finished, you have shown them the overall value for what it costs. Many have it in their minds to start negotiating with you, no matter what price you give, but this way allows you to keep your price firm. Tell them you may be able to do it for less but that you'll have to remove many of the products or services (and the benefits) you've discussed.

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Labels: Sales Advice

Professional athletes are good at what they do because they practice visualization. Visualization is the ability to create a mental model of a situation. When the quarterback comes out of a timeout, he's got the play in his head and is visualizing a completed pass to a wide receiver. In a down-turning market, contractors should consider using a form of visualization to help them land a potential job.

Practice Makes Perfect
Visualization is a form of preparation. It's a mental simulation of what's to come. Every type of contractor must sell his or her services to potential clients - part of the sales process is overcoming objections. The trick to closing a sale is to be the authority while presenting an authoritative presence. The project owner must believe you're the right person for the job. The key is to have the ability to answer any and every question (or objection) imaginable.

So you need to imagine them all.

It's easy to dismiss a potential client's concerns by rattling off your answers "on the fly". But here's where it's important to put yourself on the other side of your introductory handshake and imagine what questions they'll ask. This visualizing you do will help you be prepared with the perfect answer every time. Having that perfect answer will calm fears they may have about which company to hire. Before any sales pitch, visualize yourself answering all possible objections.

Visualize yourself being calm, cool, and collected. Your knowledge and abilities will land you the project. And generate quality referrals, which you need to grow your business.

Seeing is believing.

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Labels: Sales Advice

First and foremost, contractors in the remodeling, repair and building industry know their jobs. But do they know, or care to know, their clients? While it is very important you understand how to build, repair and renovate, I believe it's equally important to understand the people who pay you. Sure, you can get referrals and recommendations if they love you, or love your work. But there is more to it.

Clients have a lot of needs. It's possible many contractors don't care about them, but that could be a huge mistake. Every client's needs involve how you and your finished project are going to make them feel. With every meeting, before you begin a project, know your client wants to feel understood, listened to, and appreciated. These may seem like minor, insignificant, and useless concepts. But you may not realize that your clients mostly all buy products and services based on emotion. And they choose contractors based on trust (and not just price!) Intangibles based on trust and emotion are nearly impossible to quantify.

Consider that by getting to know your clients can do more than help you get the contract or gain valuable referrals. Listen, with interest, to what they tell you. Repeat it back to them to let them know you not only heard it but understand it. Share common experiences and stories to develop a quick rapport. Let them teach you what they know about their property. The reward for you? By gaining their trust, you will get great communication with almost every client throughout the whole job. If you can appeal to their emotional side without talking down to them, they will be more apt to expand their project and spend even more with you.

By getting to know your clients, you can have someone willing to talk comfortably with you and tell you what they want and not just need. You can get them to sign long-term maintenance contracts because they want you back on their property. You can avoid anger and disgruntlement when surprises and problems arise (and they arise on nearly every job.) You can get them to take chances with you and trust your judgment. You will, of course, also get those recommendations and referrals because they believe in you.

It does take time and it does take patience. But it can be the difference between a good and a great experience. And great can mean a whole lot more success and profit on each job that just good.

Think about a time you visited a doctor and it didn't go very well. Ever have a doctor, or dentist, who only had to hear about one or two symptoms and proceeded to cut you off as you wanted to go into greater detail? Because they had already figured out the problem? Even if they were right, they didn't promote trust.

And if they were wrong... Well, that's another story.

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Labels: Sales Advice

Many contractors talk to good prospects on the phone and they set appointments to meet with those potential project owners. The ultimate goal is get the contract signed so that work can soon begin. Part of the selling process is to give them your pitch about your services and products you work with. Since price is a concern with every project owner, your first instinct is to pitch your experience, past projects, quality workmanship, and timely scheduling.

You're probably lucky to close 1 in 10. For some, it might be 1 in 5, but in a competitive market some close 1 in 20.

How can you improve on that ratio? Knock their socks off. Instead of pointing out how many years your company has been in business, give your potential client powerful information about how you will be changing their lives. Your pitch could be a lesson or news story titled, "9 Ways Money is Pouring Out of Your House." Or it could be "12 Ways to Improve Your Property Value by 25% in One Month." What about, "Save Money, Save Time, and Save the Planet"?

When you provide tips, techniques, tricks, and valuable information during your sales pitches, several things happen. You will become the expert in their minds. You will
be offering potential clients something above and beyond your services that will have them talking to friends and family. You will be turning the attention of your pitch to the project owner and away from you. And people love to think and talk about themselves. When it becomes about them and the ways that you will help them, you'll see your closing ration creep higher and higher.

Provide them with information that they value, that goes beyond your services and products, and it will create a need over maybe just a want or a desire. And that is the secret to bumping up your ratio.

Labels: Sales Advice, Small Business Advice

All contractors are sales people. And everyone knows that closing a sale can be the hardest part of the process. You want the signature on the contract so you can get started on the work that you love to do.

After your pitch, you have summarized the job and the products, you have discussed the costs, you have answered questions and overcome objections, and your next step was to ask the potential client for their business. "When would you like us to begin the work?" You slide the contract over to them.

Here is where many contractors get in trouble.

Many don't like the uncomfortable silence that follows after they ask for business. There is a strong need to fill the void. Contractors will continue to talk and talk about warranties, guarantees, coupons and more to make sure they don't lose the sale. But know that the silence is just as uncomfortable for your potential client.

Use silence as a sales tool. If you have overcome their concerns and answered their questions with effectiveness, you don't need to keep talking. Ask them to sign the contract and wait. Quietly. You'll be surprised how many will trust you and your company's pitch and will sign on the dotted line.

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Labels: Sales Advice

Your business phone is a tool. A sales tool. It's important to make the best use of it. For most contractors, it’s your first contact with potential clients. Those first impressions are truly important. Before you ever get a chance to have a project owner sign that contract, you have to build trust and rapport with people over the phone.

Every call is a potential sale and contract. It's important to treat them as such. Many contractors hate to use the phone and answer with a terse or gruff tone. Or worse, simply say, "Hello." Announce your company name, add your name, and ask how you may help the caller. It's simple, polite, and puts the potential client at ease. No matter your professional, it can be an expensive proposition to call your company. Project owners need to feel comfortable that they've made the right decision to call you.

When you meet someone face to face, most people tend to smile at the new person. It is a comforting sign that you are similar and not a threat. Try smiling just before you pick up the phone. It's nearly impossible to be terse or gruff when you're smiling. Try it.

Potential clients are all different. Some are focused on price, some on quality, some are quick and to the point, and some like to comb through every single detail. Slowly. To build a rapport with your caller, you might try to adapt to them. In they are succinct and in a hurry, you might speed up your delivery. If the caller is folksy and full of old time clichés, you should consider returning the favor with a few tall tales of your own. The similarities between phone styles lets the potential client relax and trust they have found the right person for the job.

Converting phone calls into appointments is your ultimate goal. Like your company vehicles, your tools, and your knowledge, your business phone keeps you working. How you answer, how you talk, and how you represent your company can keep you in business for a long time.

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Labels: Sales Advice

You may be a plumber (or a builder, or an architect) but you have a second job. You're also a salesperson. You may love or hate this second job, but it a necessary part of any service professional's business. Every time you talk with a prospective client, you have to sell your services, your products, and your self. Project owners are inviting you into their lives and their homes or businesses. They want a company they can trust and who will do the best job.

The tricky part of your salesperson job is not the service you're selling. What makes it hard is how you sell it. Many tend to talk about the products and services they provide. They talk about all the features of a new countertop or replacement windows or a remodeled bathroom. They are actually selling... nouns. A renovated kitchen is a noun. A new roof is a noun. But you should focus on selling what your services and products will do for homeowners and business owners. Start selling verbs. Actions. Results. Solutions.

Replacement windows may have UV protective glass, brass hardware, and between-the-glass blinds but those are just the features of a particular product. Telling a potential client about the energy savings, the improved value of the home, the ease of cleaning and maintenance, and the beauty and durability of new windows will flip those nouns to verbs. When you let people know how their lives will be changed or that they'll be much easier, you've stopped selling and your started informing.

By providing a solution to a need or a problem, you'll make your second job as a salesperson much easier and maybe even more fun. You'll begin to think of your job as helping the people in your community and that's what being a service professional is all about.

If you're not already a member of the Construction Deal.com network, considering registering with our service for free. Choose your job categories and your work radius, we'll show you a past history of job leads in your area. If you're satisfied that we can provide you enough work, go ahead and become a paid member. If not, you can always stay a member for free until we get more business for you.

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Labels: Contractor Advice, Sales Advice, Small Business Advice

You've met with the project owner. You've viewed the site. You've discussed your company, your experience, and your strategy. You want the job. The trick is knowing when to pull out the contract. You want to make sure it gets signed.

How can you make sure the timing is right to close the sale? If you have done the following things, it's a good bet the project owner will sign on the dotted line:

You Built a Rapport
Trust is a great commodity. If the client trusts you, he or she will want you to do the work. This doesn't mean that you're extremely likable - even though you may be. It means you both share the same interests and values. Throughout the course of your sales meeting, you have found common interests that bring you together. That bonding builds trust. Trust closes deals.

You Became the Expert
During your inspection of the site, you've provided a smart solution. You may have talked about how you solved a similar problem on another job. You might have shown the current job won't be as difficult or expensive. When you prove you know what you're talking about, it also goes toward building trust.

You Generated Emotional Response
In any remodeling, building, or installation project you're dealing with fear. The project owner is afraid to invest a lot of money and is dealing with a ton of guilt. Part of your sales presentation is to sell the sizzle of the project. When you talk about how the project will change things for the clients and improve their lives or business, you're tugging on their emotions. Give the features of the product, as well as the overall project, but always sell the benefits.

You Spoke to the Need
The potential client agreed to hear your sales pitch. It means that he or she is interested in completing the project. There is a need or at least a strong desire. When you can ask questions during your meeting to find out what the source of the need is, you'll be able to reinforce how much the project will help meet that need. For example, the client may want to be the envy of the neighborhood. When you speak to that need, it will be hard to not get a signature.

You Answered the Questions
Finally, when nothing is left to be discussed and all the confusion has been cleared up, you should pull out the contract. If you leave anything hanging, your potential client may hesitate. You want to ensure all the questions have been answered before you close the deal.

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Labels: Customer Service, Sales Advice, Small Business Advice

Closing a sale on a remodeling or building job is an art form. Most property improvement projects can be very expensive. Your potential clients are going to have objections. Keep in mind an objection is not a "no". An objection is a concern and it is important to not give up on your first try. Many sales pros suggest overcoming two to three total objections before giving up.

An objection should be considered a good thing. It shows interest in the sales process. An objection is a question, a plea for more information. "You charge too much" is the same as asking "How can I get my project done within my budget?" By talking to potential clients about your services, you're giving them details on your level of quality craftsmanship and materials.

If they state they are not ready to make a decision at this time, they are stalling. What they are saying is they either want to look for a better bid or they're not ready to make a commitment. Use this as a way to show them that you realize they're stalling. By stating "I understand you feel this is a big step" or "I know you want to get the best deal, but..." you agree with them and set yourself up to close the deal. State your company's case or ask them probing follow up questions. Questions reveal why they want to stall. You'll get replies that gives away the root of the problem and you can adjust your estimate or explain why they need to pay more for a product or service.

The key to overcoming an objection is to agree with potential clients. If you try to fight back or argue their point, your chance of closing drops to zero. By empathizing with them, using terms like "I understand..." or "I feel the same way..." you acknowledge their concerns and set up the opportunity to answer questions. Do not over-talk the objection. Answer their question and move on to closing the contract. You may spend too much time trying to explain their concern and that will only keep it in the forefront of their mind.

If you build trust and rapport, effectively sell your services, and overcome up to three objections you'll have a better closing rate on your potential projects.

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Labels: Contractor Advice, Sales Advice

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.

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Labels: Contractor Advice, Sales Advice, Small Business Advice

I found a post on the BNET blogs called the ABC's of Closing and it's worth checking out. What I like about the article is that it's telling you to recognize that you're not trying to trick a potential client into using your services, but you are instead moving them toward making a decision.

Here are some real word examples from the post about what doesn't work in closing a sale and what does work. See if any of them sound familiar to you:

• INEFFECTIVE: The assumptive close. Ask the customer to make a meaningless decision that assumes a decision has been made. Example: "Do you want that in the hunter green or the hunter orange?"
• INEFFECTIVE: The flyfish close. Promise something valuable then take it away if a decision isn't made now. Example: "We have a special offer - a 15 percent discount - but only if you decide to buy now."
• INEFFECTIVE: The puppy-dog close. Let the customer try the product for free in the hopes the customer will fall in love with it. Example: "We'll give you the product free for your evaluation and only charge you if you don't return it."
• INEFFECTIVE: The reverse close. Ask a customer who's saying "no" a question intended to elicit a "no" that actually means "yes." Example: "Is there any reason that you wouldn't do business with our company?"

The author also has some examples of how you should be funneling your potential client toward making a decision to hire your services:

EFFECTIVE:

• "How does that sound to you?"
• "What do you think about that?"
• "What timeframe would you need for delivery?"

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Labels: Sales Advice, Small Business Advice, Small Business Marketing

You negotiate with people every day. You deal with subcontractors, suppliers, and potential clients. It's important to understand the art of negotiation - to help you provide the best solution for your clients and help you understand an unscrupulous supplier. Whenever you're persuading someone, it should always be toward a win-win for both parties. The best way to do that is to be prepared to negotiate. Psychologist Robert Cialdini wrote a book that contained his 6 Laws of Persuasion. These laws will help you be more prepared:

Law of Reciprocity
People want to repay you for doing something nice. If you give them what they want or something useful, they'll want to pay you back. If you're dealing with a supplier charging more than normal, you may want to ask for a reciprocal payback for the next time you purchase something. Or, if you give a useful calendar as a free gift to your clients they'll respond by referring you to others.

Law of Scarcity
When people cannot have something or find out it is a scarce resource, their interest is peaked. This law works not because people want to get the product or service before it's gone, it works because they realize that if others want it then it must be a good thing. If you go to your supplier because you're out of time or low on a product, the supplier has the upper hand. You have something they need. They can claim that they're running low and can charge you more. Or, if you are very busy because you have multiple jobs, a potential client who really wants your services may be willing to pay more to be made a high priority.

Law of Liking
People will believe in someone they like. They trust friends because friends are like them and feel the same way. When dealing with a potential client, it's important to build a rapport with them. Find something in common and you'll be letting them know that you're more alike than they realize. Suppliers will try to get you to like them and may use another salesmen or manager to be the one you don't like. Car salesmen do this by becoming your friend and then asking their managers for approval on a price - and they already know the answer - but pretend they're doing this because you're best friends.

Law of Authority
People believe in experts. Even if the expert is a famous person, they consider their opinions because they've been elevated based on their talents. If it's good enough for the "expert", it's good enough for them. They think they'll become more like that expert. Your supplier will tell you they have the best product or prices in town - you need to do your research to verify it. Or, if you spend more time with a potential client instead of just tossing out your price, you'll convince them you're the expert and can handle the job better than anyone.

Law of Commitment and Consistency
People want to make a commitment. Once they decide on what they like or believe - they'll stand by that decision. Even if it proves wrong. If a potential client trusts your service, they'll believe in you. One way to get customers to trust and believe in your services is to get them to agree with you. Instead of saying, "Here's how much it will cost," you could say, "You believe in the best quality materials, right? And you believe in making sure the project is done right and not just fast. True? Here's how much you'll need to invest for that level of quality and that level of care." Or, for example, your supplier may lead you to give many yes answers on a number of small questions. If the supplier gets you to agree to these small decisions, it will be easier to close you because you're already in agreement.

Law of Social Proof
People want to conform to the social norm. If you're not sure which product to buy, you'll buy the same product everyone around is buying. People are trained to do what society says. Didn't your parents ask, "If everyone jumped off the bridge, would you jump, too?" Give potential clients a long list of references and testimonials. By letting them know you’re the best person for the job, they'll trust in your ability to make them as happy as you've made others. Or, suppliers may tell you your competition buys from them, so why shop anywhere else? Follow up with your competitors to see if they’re willing to give a testimonial on those suppliers. Once you know the truth, you can use it to persuade suppliers that they need to work with you on terms that will provide a win-win situation for both parties.

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Source – Cialdini, R. (1998) Influence: The Psychology of Persuasion

Labels: Negotiation, Sales Advice, Small Business Advice