The Big Drop Is A Big Flop

Let me preface this post by saying that this is not an assault on those within the home improvement industry who use a price drop as an incentive to close a deal.  The issue is the “big drop”.

Historically this practice dates back to the late 40’s and early 50’s when in an effort to sell roofing, siding and storm windows, sellers would offer a discount, maybe 10% of the quoted retail price to get the order.  In those days the average roof sold for $350 to $500 and siding ranged from $1200 to $2000. Accordingly, the discounts used were believable and represented a reasonable incentive. A siding job quoted at $1600 representing a $160 (10%) discount was equal to more than an individual was paid for a week.

By today’s standards, the $35,000 sunroom or basement, the $15,000 siding job or $10,000 window replacement (where there are multiple discounts ranging from $3,000 to $8,000 and more) start to resemble the way automobiles are sold – – with little or no credibility to the quoted price. If you are a proponent of this selling style, you need only review the manner in which you get rescission. The majority of respondents cite price as the reason.  If the customer believes your net price is too high, they certainly didn’t believe the list price was reliable.  Consider the number of people you don’t close because the abundant discounts don’t seem credible.

When the list price is validated and the customer sees value in the product versus the price, the incentive offered has reliability.  Often salespeople rely on that “big drop” to get the sale, because value was not sold. If you offer a bonus or discount as an incentive in your advertising, this price reduction is dealt with soon after you quote the list price.  The net sales price is then validated by your prospect.  Then the “buy tonight discount”, which can be anywhere from 3% to 5%, will make sense.

This is a call for home improvement companies to review the manner in which their in home presentations are made and how the value of their product is being established.  Once this happens, “big drop” is replaced with an initial presentation incentive, which will increase your closes and diminish your rescissions.

The advice we received from Dave Yoho Associates enabled us to increase our volume with 19% less leads in the first year alone!

Joe Francis, President
Shiner Roofing, Siding and Windows

Dave Yoho Associates provided guidance, advice, best practices, and support to our entire staff. Our company has improved across every level after working with them.

Cris Keeter, Owner
All-States Exteriors

When it comes to consulting advice for the home improvement industry, Dave Yoho Associates has no equal. We have worked with them for over 15 years and we are ecstatic about the results!

Daniel Green, Sr. Vice President
Solarshield

I would like to thank Dave Yoho Associates for their consulting services. For me, the meaning of ‘value’ is getting more than what you paid for, and their services truly exemplify this.

Aaron Heth, Director of Sales
Freedom-Solar

Dave Yoho Associates’ consultants are the sharpest in the industry, and are incredible communicators, very engaging, and always inspiring. Their industry insight is unmatched, as is their creativity.

Todd Miller, President
Isaiah Industries

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Wasyl Bodnar, President
Ventana Design, Sales, and Manufacturing

I’ve had the privilege of using Dave Yoho Associates consulting services for the last three years. It’s by far the best single business decision I’ve made. Their structure, training, and business coaching are second to none.

Michael James, CEO
Classic Exteriors

We have been working a long time to reach a “million-dollar month”, and this September we finally accomplished our goal! The Dave Yoho Associates model and training tools are without a doubt the keys to our success.

Chuck Cometti, General Manager
RbA of Central New York

Immediately after your training, I ran my first solo appointment and got the order for $16,088! I beat out a reputable local remodeling company whose bid was $4000 less and was referred to by the customer as a slightly ‘better’ product.

Sara Zarndt-Brickey, Operations
Re-Bath of Illinois

Recently, Dave Yoho Associates performed ‘role-play’ scenarios for three hours with our salespeople. The eye-rolling is gone and their confidence has grown substantially. Can’t wait for your visit next month!

Jason Phillips, CEO
Phillips Home Improvements

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