The Closing Process

Chapter 7

For Retail HVAC In-Home Comfort Advisors

The Closing Process

Tom Wittman: HVAC Coaching Corner
www.HVACCoachingCorner.com
(317) 750-1607
Coachtomw@gmail.com

Tom Wittman: Pro Comfort Advisor LLC
www.ProComHVAC.com
1-800-420-3750
CoachTomw@Gmail.com

Step 1. Prepare your customer to buy:

By now, you and your customer has reviewed all of the options and arrived at a price that includes everything your customer wanted to include with their new system. And they should be clear on how their new system will satisfy everything on their list of goals. The next step is to prepare them to buy.

Simply ask: does all of this make sense to you? pay close attention to their facial expressions and body language. Any response less than a confident and affirmative YES is an indication that there is an issue that needs to be uncovered before moving onto asking for the order. If you sense concern, frustration, embarrassment or confusion, you must ask about it by using good people skills, the proper tone of voice and approach the customer in a fashion that satisfies the concern.

For Example;

Tell me how you’re feeling about this. I get the sense that you’re feeling uneasy about something, what are your thoughts?

Listen to them, Isolate the issue and solve the problem.

Once you are confident your customer is 100% on board with their proposal, ask, Can you see how this system will accomplish everything on your list of goals? This question is intended to make sure, completely sure that your customer has no barriers preventing them from saying YES to your asking for the order based upon their non-verbal communication. You must be absolutely certain that there is nothing in the way of your customer saying YES when you Ask For The Order.

Step 2. Assume the Sale.

The next step is to schedule the work, would Wednesday or Friday work better for you?

How about we button this up and schedule the work?

All we need to do is authorize the paperwork and schedule the work, let’s review the agreement.

Congratulations on selecting an excellent system lets button it up and decide what day you want your work completed.

Step 3. Explain payment options

Always assume that the first objection is because the customer doesn’t know how to pay for the work. Therefore, acknowledge their response and explain the payment options by saying I understand, let me explain our payment options. You can pay by check, you can pay by credit card, you can pay part by check and part by credit card to lower your monthly payments or, we could finance it for you… What works best for you?

Never forget to give them options and ask for the order What works best for you? Direct, simple OPTIONS followed up by asking them to choose an option.

Statistically, 25% of people will say something like Oh, You have financing? That is a very strong buying signal. Isolate that response and solve the problem.

Yes, we do! If I can establish a manageable monthly payment for you, would there be anything preventing us from scheduling the work?

If the customer says no (which means YES, lets schedule the work), have them complete the financing application while you complete the final proposal and get the financing company on the phone for a pre-approval or go online (if you have the ability to do so in the home) and have your customer go through the pre-approval process. Develop the ability to obtain financing approval in the home in the moment.

If they say, I still need to think about it or something like that, its time to uncover the reason for not buying.

Step 4. Uncover the reason for not buying.

When a customer doesn’t buy, they usually try to hide the reason. Your job is to uncover the reason for not buying and help them solve that problem.

Customer: I still need to think about it

Advisor: Are you comfortable with your system selection and the additional work we’re proposing?

Customer: Yes

Advisor: How soon will you be making a decision?

No matter what they say next, always reply with Oh, that soon? that statement will give your customer control of the situation and assure them that you’re not going to try to force them to do something they don’t want to do.

Customer: In about a week or two

Advisor: Oh, That Soon?

If money wasn’t an issue, would you schedule the work?

As long as you’ve developed a good rapport, established credibility and they believe that what you are proposing will solve their problem, expect them to say yes.

Advisor: When it comes to the money, my customers usually fall into one of two categories: They want to do it but don’t know how to pay for it or they aren’t sure spending that much money on their new system is a good place for their money. Which one are you?

Be quiet, pay attention to their body language. Most of the time they will reveal a reason (it might not be the reason) but they will give you a reason for not making a buying decision.

The most common reasons fall under the following categories 85% of the time:

I want to do it but I don’t know how to pay for it.
I’m going to do it later when I get the money.
I’m not sure if spending this much money is a good idea.
I need to get two or three additional bids to make sure I’m not overpaying for the work.
All of the other prices were significantly less than your price.
The other guy was offering better warranties and guarantees at a lower price.

Step 5. Isolate the reason.

We need to isolate the first issue as the only reason for not scheduling the work. This is a simple process where you will clarify the reason for not buying and Isolate that issue as the only issue in the way of them moving forward with the work.

I want to do it but I don’t know how to pay for it

ISOLATE the reason for not buying…

If you did have a way to pay for your system, would there be anything else preventing us from scheduling the work?

Solve the problem…

We can finance it for you and if you financed everything your payments could be $350.00, $275.00 or possibly as low as $225.00 per month, not to mention the money you will be saving on your utility bills…. Which payment works best for you?

I’m going to do it later when I get the money

Reply: How soon will you be ready to schedule the work?

Customer: In about eight months

Reply: What’s going to be different then?

Customer: (Bonus, CD coming due, I’ll have saved enough by then.)

ISOLATE the problem Reply: If you had the money now, would there be any reason not to schedule the work?

Customer: No

Solve the problem: Reply

We have a program where we can install your system now and you can pay it off within the 12 months with no interest or penalties. That will work, right?

I’m not sure if putting this much money into the HAVC system is a good idea.

Reframe, re-direct and isolate the situation…Reply:

Option 1:

What were you hoping the price would have been?

Hoe were you planning on paying?

We have systems like that. Lets review….ok?

Does all of this make sense?

A Lot of my customers use their budget as a down payment and finance the rest… Payments on the Best system would be $150 – $125 – may be as low as $95 per month.. Will that work?

Option 2:

What I’m hearing you say is that you want to make sure your making a good investment, Is that right?

ISOLATE and Reply:

If you were certain that you would get a great return on this investment, would there be any other reason for not scheduling the work?

Reply: Work with me for a moment, you are going to appreciate this thought
process.

A. Return on investment approach Appendix A.

Prepare your customer to buy:

Does all of this make sense to you? Can you see how this system will accomplish everything on your list of goals?

If you sense concern, frustration, embarrassment or confusion, you must ask about it by using good people skills, the proper tone of voice and approach the customer in a fashion that satisfies the concern.

Tell me how you’re feeling about this. I get the sense that you’re feeling uneasy about something, what are your thoughts? Listen to them, Isolate the issue and solve the problem.

Assume the Sale.

The next step is to schedule the work, would Wednesday or Friday work better for you? How about we button this up and schedule the work?

All we need to do is authorize the paperwork and schedule the work, let’s review the agreement.

Congratulations on selecting an excellent system lets button it up and decide what day you want your work completed.

If they Buy, Schedule the work.

If they do not make a buying decision yet, Always assume that the first objection is because the customer doesn’t know how to pay for the work and explain the payment options.

I need to think about it. Explain payment options.

Let me explain our payment options. You can pay by check, you can pay by credit card, you can pay part by check and part by credit card to lower your monthly payments or, we could finance it for you… What works best for you?

If they Buy, Schedule the work.

If they do not make a buying decision yet, uncover the reason for not buying.

I need to think about it. Uncover the reason for not buying 1 of 2:

Are you comfortable with your system selection and the additional work we’re proposing? How soon will you be making a decision?

Oh, that soon? If money wasn’t an issue, would you schedule the work?

When it comes to the money, my customers usually fall into one of two categories: They want to do it but don’t know how to pay for it or they aren’t sure spending that much money on their new system is a good place for their money. Which one are you?

I need to think about it. Uncover the reason for not buying 2 of 2:

Long shot.

Sometimes when people tell me that they want to think things over, it’s really just a polite way of telling me that they are not interested. I’ve been here for over an hour and ½ and don’t want to waste any more of your time so level with me, will you be giving our proposal serious consideration or is this a polite way of telling me that your not interested?

How soon will you be making a decision? Oh, that soon? If money wasn’t an issue, would you schedule the work?

I want to do it but I don’t know how to pay for it

ISOLATE the reason for not buying…

If you did have a way to pay for your system, would there be anything else preventing us from scheduling the work?

Solve the problem…

I’m going to do it later when I get the money

How soon will you be ready to schedule the work? What’s going to be different then?

ISOLATE the reason for not buying…

If you had the money now, would there be any reason not to schedule the work?

Solve the problem…

We have a program where we can install your system now and you can pay it off within the 12 months with no interest or penalties. That will work, right?

I’m not sure if putting this much money into the HAVC system is a good idea.

What were you hoping the price would have been? Hoe were you planning on paying? We have systems like that. Lets review….ok? Does all of this make sense?

A Lot of my customers use their budget as a down payment and finance the rest… Payments on the Best system would be $150 – $125 – may be as low as $95 per month. Will that work?

I’m getting other bids.

What I’m hearing you say is that you want to make sure that you are not overpaying for the work, is that right?

ISOLATE the reason for not buying…

If you were certain that you would not be overpaying for the work, would there be any other reason not to schedule the work?

Solve the problem…other bids 1 of 4

The Price assurance Guarantee:

Our customers appreciate the fact that we offer a price assurance guarantee. Simply stated, if you find another licensed HVAC contractor that conducts business the way we do and proposes to do everything we promise to deliver at a cheaper price, I will beat that price by 10% or Give you $100.00 in cash. Now that you can be confident that you will not overpay, what are your thoughts on scheduling the work?

Solve the problem…other bids 2 of 4

The 100% Performance Satisfaction Guarantee:

My customers told me a long time ago that they simply couldn’t afford not to have the job done right the first time. And that’s exactly what we do. In fact, if you are not 100% satisfied with our installation, out employees, the performance of your system or anything about the transaction, we will do what-ever it takes to make things right up to a 100% refund on the entire installation for one full year from the time of the installation.

Give it a test drive for a year. If you don’t like it, we will do whatever it takes to make it right. Now that you can be assured that you’re not going to overpay for the work or take any risk in doing business with us, what are your thoughts on scheduling the work?

Solve the problem…other bids 3 of 4

Soft-Shoe Performance Guarantee

Can you remember a time when you made a decision to spend a little more money on a higher quality item and after you’ve enjoyed it for a while, never regretted making the decision? What’s the difference between that decision and the one you’re considering right now with me?

Especially since all of the risk is on us to perform. If you’re not happy with your new system, we will do whatever it takes to make things right up to a 100% refund of your initial investment. Suppose I said we could work you into the schedule on Thursday. What would you say?

Solve the problem…other bids 4 of 4

Long shot.

Sometimes when people tell me that they want to shop around or think things over, it’s really just a polite way of telling me that they are not interested. I’ve been here for over an hour and ½ and don’t want to waste any more of your time so level with me, will you be giving our proposal serious consideration or is this a polite way of telling me that your not interested?

When will you be finished collecting the rest of your bids? Suppose I said that I could drop by after you’ve collected all of your information to review everything and re-visit the system you and I’ve put together. What would you say?

I have Other Lower Prices

Option 1

What were you hoping the price would have been? How were you planning on paying? We have systems like that. Lets review….ok? (Review) Does all of this make sense?

A Lot of my customers use their budget as a down payment and finance the rest… Payments on the Best system would be $150 – $125 – may be as low as $95 per month.. Will that work?

Option 2

How far out of range is their price compared to ours?

ISOLATE the reason for not buying…

If you were confident that you weren’t being overcharged for the work, would there be anything else in the way of scheduling the work?

Would it be possible for us to compare their proposal to ours and see where the differences are?

I see that they are proposing similar equipment and the price is $2,000.00 less, just as you said.

Solve the problem…

Where on their proposal did they document that they were going to make your upstairs bedroom warmer in the winter, reduce allergy triggers and provide better humidity control? That is what you wanted your new system to do for you, is that right? Or was I mistaken?

I understand, what recourse would you have with them if the system did not perform up to your expectations?

Did they give you a certificate or put that in writing and sign it?

We learned a long time ago that our customers couldn’t afford not to have the job done right the first time. And that’s exactly what we do. In fact, if you are not 100% satisfied with our installation, out employees, the performance of your system or anything about the transaction, we will do what-ever it takes to make things right up to a 100% refund on the entire installation for one full year from the time of the installation.

So the real question I have for you is this: Is it worth an additional $200.00 per year over the next ten years or 55 cents per day, for the peace of mind in knowing that if you are not satisfied with any part of this transaction, the installation or the performance of your new system within the first year of ownership, we will do whatever it takes to make it right up to a full refund of your initial investment?

Can you remember a time when you made a decision to spend a little more money on a higher quality item and after you’ve enjoyed it for a while, never regretted making the decision?

What’s the difference between that decision and the one you’re considering right now with me?

Especially since all of the risk is on us, not you. Suppose I said we could work you into the schedule on Thursday. What would you say?

Your price is too high

Option 1:

What were you hoping the price would have been? Hoe were you planning on paying? We have systems like that. Lets review….ok? Does all of this make sense?

A Lot of my customers use their budget as a down payment and finance the rest… Payments on the Best system would be $150 – $125 – may be as low as $95 per month. Will that work?

Your price is too high

Option 2:

How far out of range is our price

ISOLATE the reason

What was our price compared to? If it was compared to another proposal, follow the Other Lower prices process. If it was simply out of their budget, re-visit the system selection and additional work.

ISOLATE the reason for not buying…

If we can re-visit the type of system and additional work and arrive at a price point closer to that number, would there be any other reason not to schedule the work? (Re-visit the proposal and right-size the job)

I have a couple of bids proposing similar equipment, $2,000.00 cheaper than your price with 10-year parts and labor warranties and a no lemon guarantee on compressors and heat exchangers.

ISOLATE the reason for not buying…

If you were confident that you were not overpaying for the work and were receiving better warranties and guarantees, would there be anything in the way of us scheduling the work?

Would it be possible for us to compare their proposal to ours and see where the differences are?

I see that they are proposing this other Brand of equipment and the price is $2,000.00 less, just as you said.

I also see where they are offering Limited Warranties.

Solve the problem…

We used to install this Brand of equipment along with these warranties. After a few years of operation, we experienced a lot of equipment failures due to poor manufacturing practices but the real issue we had with them was that it became extremely difficult for us to get the Limited Warranty on the defective parts approved for reimbursement. The high failure rate combined with the difficulty in getting warranty claims paid for replacing their defective parts forced our decision to stop installing this brand of equipment. It was hurting our reputation. I am asked about this very question so often that I started to carry copies of customer comments I retrieved from googling that brand, would you like to have a copy?

Any HVAC Contractor can buy and install this equipment, in fact, we can install it for you and give you these Limited warranties at this price if that’s what you really want to do, but we will not give any performance guarantees with that Brand of equipment.

I’m curious; did the other contractor offer any type of performance guarantee? Interesting.

What recourse would you have with them if the system did not perform up to your expectations?

We learned a long time ago that our customers couldn’t afford not to have the job done right the first time. And that’s exactly what we do. In fact, if you are not 100% satisfied with our installation, our employees, the performance of your system or anything about the transaction, we will do what-ever it takes to make things right up to a 100% refund on the entire installation for one full year from the time of the installation.

So the real question I have for you is this: Is it worth an additional $200.00 per year over the next ten years or 55 cents per day, to for the peace of mind in knowing that if you are not satisfied with any part of this transaction, the installation or the performance of your new system within the first year of ownership, we will do whatever it takes to make it right up to a full refund of your initial investment?

Can you remember a time when you made a decision to spend a little more money on a higher quality item and after you’ve enjoyed it for a while, never regretted making the decision?

What’s the difference between that decision and the one you’re considering right now with me?

Especially since all of the risk is on us, not you. Suppose I said we could work you into the schedule on Thursday. What would you say?

The Closing Process