Introduction to the Sales Process
Course Overview Introduction to Avalon Roofing's sales philosophy and goals Importance of a structured sales process

Step 1 Building Rapport – The Meet and Greet/Warm-Up
The Meet and Greet/Warm-Up Establishing a connection with prospects Techniques for building respect, trust, and credibility Open-ended questions to uncover customer needs and preferences

Step 2 The Evaluation/Inspection
Evaluation/Inspection Interior and exterior assessment of roofing systems Identifying common roofing issues Involving prospects in the inspection process

Step 3 Presenting the Company – Add credibility to the Company
Avalon Advantage/Company Story Highlighting Avalon’s credentials and experience Building trust through company history and achievements Emphasizing customer satisfaction and quality control

Step 4 Financial Discussions
Investment vs. Expense/Price Conditioning Educating prospects on the long-term benefits and ROI of a new roof Addressing financial concerns and offering cost-effective solutions Understanding and explaining equity appreciation

Step 5 Product Demonstrations: To Give a Memorable Product Presentation
Product Solution/Demo Using the FAB (Features, Advantages, Benefits) theory Presenting Avalon’s product offerings (Asphalt and Metal roofing systems) Highlighting the Golden Pledge Warranty and other selling points

Step 6 Setting the Stage/Pre-Close: ask for their business TODAY
Setting the Stage/Pre-Close Establishing the intention to close the sale Overcoming objections and preparing for negotiation

Step 7 Finalizing Measurements
Final Measurements Ensuring accurate project measurements Reviewing pain points and structuring packages Pricing the Project Accurate pricing based on measurements and project scope Presenting financing options and payment plans

Step 8 Pricing the Project
Preparing the Price of Project, Understanding the Payment Range and Discounting

Step 10 Lock in the Deal/Warm-Down
Lock in the Deal/Warm-Down Completing necessary paperwork Reassuring the prospect of their sound investment Providing clear next steps and maintaining communication

Step 9 The Negotiation/Presenting The Price
About Lesson

Step Nine

The Negotiation/Presenting The Price

Purpose: Closing the Deal

 

There are 3 types of sales representatives in the industry: order takers, presenters, and closers. It is critical that all sales representatives are nothing short of closers, to be a closer you will have to be confident in your ability to negotiate, confident with the information, and listen intently in order to understand and overcome objections that will naturally arise during the negotiation.

 

Price and Payment. Payment First Strategy

 

In most cases, homeowners can buy anything at any time if they have the ability to finance the project within their financial budget.  In order for the customer to make a sound decision, they have to feel that the term or payment range provided to them will not create a financial problem and they can afford the monthly payment without hesitation. 

 

The Fundamentals of Negotiation:

  • The Initial Price: This price will be presented a the everyday price with the short term monthly terms associated at the price point presented 
  • The First Discount: The first discount is used to appease the prospect with a promotional savings and motivate them to buy today
  • The Second Discount: The second discount is the most critical discount, this discount is a limited offer available today, the second discount must be conditional on the companies and customers availability and be justified in nature
  • The Final Offer: The last available option to make the sale TODAY

 

Presentation of Initial Price:

 

Prior to presenting the initial price the sales representative will want to review the scope of the project, and romanticize the deal accordingly. This period of time is the time prior to showing the initial price to re-engage both parties and build some excitement regarding the project and solutions we can provide to the prospect for their home.  

 

  • Mr and Mrs Jones, I worked out something I think you are really going to like and far better than I expected….. 
  • For the premium Asphalt Roofing System with a lifetime warranty, 30 year workmanship warranty with the wind proven upgrade….
  • I was able to work out an initial investment of only…. 31,755 with an aggressive monthly investment of only $550 a month 
  • Price aside for a moment, how would 550/month fit into the current budget? Pause… 
    • If the customer agrees that 550/month fits into the budget, you have isolated the payment needed
    • If the customer advises that it is too much the rep must reduce the payment but keep the payment with range of financing, 

 

  • Mr and Mrs Jones, I hear you loud and clear, I am here to fix problems, not create them, how would $450/month fit into the budget? Pause….
    • If the customer agrees that $450/month fits into the budget you have now isolated the payment needed. 
    • If the customer advises that is too much the rep must reduce the payment but keep the payment with range of financing
  • Mr and Mrs Jones we appear to be heading in the right direction, but still a bit off from being comfortable, if you don’t mind me asking how much too much am i off? 20-40-60 dollars off? Pause…..
    • Oftentimes, at this point, the customer will feel obligated to advise the representative how far away we are from finding a comfortable monthly investment for them to be able to entertain the project
    • The sales rep must paraphrase their preferred monthly investment back to the customer, to clarify the preferred monthly investment, we have now isolated the payment needed and advised the customer of the initial project cost. The next step in the process at this point, is to secure credit scores and down payment: 
  • Mr and Mrs Jones, I would like to ask a personal question, if you don’t mind? 
  • If you were to rate your credit score from 1 to 10 with 10 being the best, where would you rate it? Pause….,,
    • Customer will answer with a number, if the customer states 7, representative must ask if that means “somewhere around 600”
    • Oftentimes, the customer will advise the representative of their credit 

 

  • Mr and Mrs Jones, Typically on projects like this, customers will put down anywhere between 10 to 20% or we will have a company minimum of $500 
  • Which option would be most comfortable for you? Pause…. 

 

If the customer advises during the presentation of initial price, they are a cash customer, representative should follow the below script:

 

  • Mr and Mrs Jones, I worked out something I think you are really going to like and far better than I ever expected…
  • For the premium Asphalt Roofing System with a lifetime warranty, 30 year workmanship warranty with the wind proven upgrade….
  • I was able to work out an initial investment of only…..31,755 with an aggressive monthly investment if inky $550 a month
    • Customer replies we will not be financing- we will pay cash

 

  • Mr and Mrs Jones, we have two types of cash customers
    • We have customers that put down 50% and the other 50% at job completion
    • Or we have customers that will pay in full for the project.
  • Which cash customer are you?
    • Almost 100% of the time the customer will advise they would like to do 50% now and 50% later

 

Transition into Package Justification:

 

  • Mr and Mrs. Jones, surely with everything we discussed you had to think we were going to be around $31,755…right?
    • The customer will almost always say “no” and then offer a price they were hoping to spend. The goal here is to within a closeable distance or gap between where they were hoping and our initial price

 

  • Mr and Mrs. Jones, what were a few items that you liked about our system…?

 

Coffee and Cigarette Close:

 

At this point in time, the sales rep will engage in a conversation around the items Mr and Mrs Jones liked. This conversation is solely based on increasing value with the package presented, and minimizing cost with reducing value to reach a price point.

  • Value Increase: Add up the benefits/ solutions of the package and advise them about the outcome of the experience. 
    • After reviewing OUR roofing system, what are you hoping to spend?
  • Value Reduction: Remove the items they appreciated and replace with inferior items that are far cheaper, reduce the length of the warranty that you can provide. Adjust to an inferior option
    • Mr and Mrs Jones in order for my company to meet your price point of $25,000 we would need to give up some of the items used- which items would you be comfortable removing from the project?
    • Mr and Mrs Jones would you be willing to reduce some of the benefits to save a little bit of money?

 

  • Outcome of Experience: The benefits of working with Avalon Roofing
    • Energy Efficiency 
    • Exceptional Customer Experience
    • Master Elite Installer
    • A company you can trust with a proven track record.
    • Mr and Mrs Jones, I think we can agree, there is very little risk with authorizing Avalon roofing to go to work for you, Would you agree?

  • The Gap Difference: Minimize the Gap between Price Points 
    • Initial price- $31,755 and the customer wants to only spend $25,000
    • Reduce these numbers to a difference of only $6,755
    • Divide this number by the length in months of a typical home improvement loan of 8 years: $6.755/ 96= $70 a month difference
    • Divide $70 / month by 30 days = $2.34 a day difference. 
    • Mr and Mrs Jones, I think we can all agree my project is worth every penny, I am asking you to invest a fraction more to protect your future, I think what you’re telling me…is the fraction more to protect your future, is more than you anticipated spending?….

 

The first Discount: Opening Offer:

 

The first discount is designed to appease the customer, and offer a promotional price incentive to get the project started.  Oftentimes, this discount will sell at a 10% rate but is more designed to pull a hidden objection from the customer on why we can’t do business today. 

 

  • Mr and Mrs. Jones, my job as an Avalon Representative is to secure orders into our company, to keep a steady flow of orders into our manufacturer….
  • This is a project that you are certainly going to consider getting done as soon as possible…
  • Because of this, I would like an opportunity to earn your business and offer you a promotional price incentive…..
  • Again, the everyday price of this project- whether it’s tomorrow or next week is $31,755 and that price is guaranteed for thirty days….
  • Avalon is looking to incentivize homeowners that are looking to get the project done as soon as possible, and I think you’re the perfect candidate… you absolutely need a roof, you’re looking to save some money, and you would prefer to work with a reputable company….
  • Again, this project is available for the next 30 days at $31,755
  • Because of this promotional price incentive I can save you…. 1 Thousand 500 dollars
  • In other words, this project that goes for $31,755 everyday, is available NOW for only $30,255 and I can offer you a monthly investment that fits within the budget
  • Mr and Mrs. Jones, with the promotional price incentive and that budget friendly monthly investment- would you agree it’s time to authorize me to go to work for you? Pause…* Representative extends hands to shake on the deal. 

 

As mentioned above this discount has a low probability of closing, but a high probability of pulling an organic objection. The representative should not be alarmed if the prospect advises they would like to pass on the promotional price. This is where the true negotiation begins.

Handling Objections: It’s time to NEGOTIATE a deal 

 

At this point in time, the rep has either closed the deal or for the first time been presented with an objection.

 

We will handle their objection directly via the six steps of handling any objection. Most objections will be organically presented to the representative as “ I need to think it over.” or “I need to shop around”  Either way or if there is any other objection you can tailor the questions to that response. 

  • Make an Empathy Statement
      • “ I can appreciate that..”
      • “ I can respect that….”
      • Never say things like, “that’s what I would do” or “that is a great choice” This only reassures that you agree with them and you are not but can respect their decision. 
  • Paraphrase the Objection:
      • Mr and Mrs Jones, if I am hearing you loud and clear you would like some time to think it over..?
      • How much time would you need to think it over…?
      • What would need to happen over the next couple days for you to be comfortable moving forward….?
  • Clarify the Objection:
      • Mr and Mrs Jones, just to clarify my thinking- so we are on the same page. What part of the project would you need to think over?
        • “Is this still a project you plan on doing in the immediate future?” (Step 2 Inspection) Close the door on the fact they have a need and it needs addressed.
        • “When you are thinking about it, are you considering using a company that does it a different way than Avalon?” (Step 3 Company Story) Close the door that Avalon is a company they can trust. 
        • “Are you considering doing a short term fix vs a long term correction?” (Step 4 Investment) Close the door on they are doing this project and not considering just a short term repair. 
        • “Is the product we showed you still the product you trust on your biggest investment?” (Step 5 Product) Close the door on the product and make sure they don’t want to use a different brand. 
        • “Would you be considering any other types of warranty?” (Step 5 Product) Close the door on warranty and if it is important to them. 
        • “Are you considering finance or cash? If finance does the payment still fall into your comfort zone?” (Step 8 payment) Close the door on if the monthly payment fits the budget or if they need extended terms like 12 months same as cash and they will have cash.
      • If at anypoint you don’t get an answer that favors your position you know what you need to rebuttal on. For example if they say that they really want to see other companies products, you know you need to close that door and must do a better job on presenting the product and can circle back to that. The representative will need to keep asking questions until a hidden objection is uncovered. Run down your steps and make sure all the doors are closed. If all these things are yes, which will happen often, it comes down to the price! The system is designed so that if you do all the steps correct you should only have to battle price. 
      • Once the hidden objective is pulled, the representative can move onto the next step of handling objections. 
  • Sharp Angle:
      • “Mr and Mrs Jones, other than the money, is there anything else keeping us from moving forward?” (You could also insert any other objection you found ie: “Mr and Mrs Jones, other than making sure Avalon is the right fit for you, would anything else keep you from moving forward?”
      • Re-state “So you are looking for the best deal and if we could guarantee you are getting the best deal you would move forward?” 
  • Rebuttal to Sharp Angle:
    • The rep will need to review information given in the presentation to overcome objections- product differences, price comparison for similar products, ect.
    • Representatives can close the price point gap with energy savings, insurance premium reductions, ect
    • Once the representatives feel the objection has been handled, we can now ask for the order.

  • Ask for the order:

 

  • Asking for the order is a critical part of the closing sequence, It is advised in a negotiation to never attempt to close the business after you handle their objection 

The second Discount: Advertising/Marketing Agreement:

 

Prior to offering the second discount, it is advised for the rep to take some time to appear confused, the delay is critical to presentation of the second offer. The majority of the sales will generate off of the second offer. Therefore, this drop needs to be executed precisely. 

 

  • Mr and Mrs Jones, at this point I am doing everything I can to get you a price your comfortable with 
  • There may be another way I can save you money BUT we would need to agree to some terms…
  • If I  was able to save you money would you be willing to advertise for our company..?
  • If you are willing, w would not ask for much in order to save you a significant amount of money
  • In order for me to offer you additional savings- you would need to agree to an Avalon Yard Sign in your yard for no less than 30 days, before and after pictures, and an honest google review. If it meant saving you more money could you agree to those terms….? Pause
  • One last thing, A personal favor Mr and Mrs Jones, because of the nature of this discount being far less than the everyday price, we would need you to keep the price confidential and please give our proposition serious consideration 
  • Let me remind you, this project is available at $31,755 anytime….
  • To earn your business Mr and Mrs Jones, I can save you $4,700 
  • Bringing your cost savings down to $27,055 out the door, and with that Mr and Mrs Jones I can offer you a monthly investment that fits well within your budget 
  • At this point Mr and Mrs Jones, stop punishing yourself and let us go to work….
    • Rep extends to shake hands with homeowners 

Final Offer: Hail Mary

 

If the rep has been advised that they will pass on the advertising promotion- we will then offer our final promotional price. It is advised that the rep packs up all product materials, appears to be intending to pack up and leave the appointment, 

 

Once the representative appears to be leaving and heads to the door to leave – stop and ask the customer what is the real reason they decided to pass on the offer 

 

  • Mr and Mrs Jones I am a bit confused on why you decided to pass on my offer…..
  • If you don’t mind, can you please advise me why we were not able to come to an agreement…?
  • Was it me? Was it the company? The overall price? I will sit down with my manager tomorrow and I am a bit confused on why we couldn’t help you, and I will need to advise him on why we couldn’t come to an agreement tonight…
    • The homeowner will more than likely answer your question with the exact reason, due to you packing up your equipment and appearing to leave. Listen carefully  
  • Mr and Mrs Jones, let me step outside and make a phone call to my manager and see if there is absolutely anything else I can do 
    • Representative steps outside and “ calls manager”
  • Mr and Mrs Jones, I spoke with my manager and he has authorized me to offer you our Loyalty Program discount for return customers….
  • At this point in time Mr and Mrs Jones this is all we’ll ever be able to offer you for your project….
  • Again, please give this serious consideration- If we cannot come to an agreement at this price point, we will never be able to come to an agreement to take care of this project for you…
  • For your order, we are willing to offer you a total savings of $6355
  • With the savings and the affordable terms, which is far better than you expected…
  • Why don’t we give this a shot? Pause
    • Representative extends to shake hands at final discount
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