Why the ‘Today Discount’ Still Works in Home Improvement Sales
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Home Renovation Sales: Using a “Today Discount” Without Pressure
Why a “Today Discount” Still Works in Home Renovation Sales
Most home improvement sales even today are done on a one call close. The most common way of doing that is to create some type of urgency usually referred to as a today discount. It can have a negative connotation like high pressure and sleazy but what causes that is because it’s done wrong in how it’s explained or when it’s done in the sales call.. It’s requires a high skill set to do it correctly and just as important to do it at the right time and lack of that is what causes all the negativity. When it is done wrong it does seem sleazy and annoys the customer. When it is done right they don’t complain and buy . I’ve seen this used with everyone from truck drivers, to lawyers, to a retired widow with great success and no lack of credibility.
The Real Reason Discounts Create Urgency (And Why It’s Credible)
Companies use discounts to create urgency all the time. If you think about it there’s really not much difference between if I want to fly to Ca tomorrow it will cost me $900 but if I make the reservation in advance it could be half the amount. Same plane and seat. The reason for the price difference is because the airlines are able to manage their assets and time better if the customer buys far out in advance instead of waiting until the last minute. Same thing when you sell home improvements. The sooner you buy the easier it is for the company to manage your installations and plan more effectively in scheduling the jobs. Also when they buy the materials in advance and in bulk it will get the company better pricing.
From a sales point of view the today discount is credible because in most cases if there was no urgency people would not make a purchase the first time you are there and how much would it cost a company if they had to see every customer twice to make a sale. If the customers aren’t upset and you could see everyone once instead of twice how could you not say you wouldn’t want that. The negativity around this comes from people who really aren’t really sales people or understand our business.
That it is not unusual to pay $150 to generate an appointment and it can take 5 of those create a net sale. So yes it would be very expensive to see everyone twice. The customers who do buy the first night saves the company money and it’s only fair that it is passed on to them. The customer get’s a better price and the company does more business. Everybody wins.
The Stigma: When One-Call Close Looks Sleazy (And Why)
People who degrade this type of sales and think the buyers should be kings have no idea how sales like this really works. And I’m sure that I’ll get flack on this the most common complaints on a one call close are from the sales people that don’t know how or are too weak to do it right. Things are put on sale to create urgency and whether you like it or not it’s the way of the world. What is a sale price anyway? Whether it’s a year end sale, black Friday sale or the blue light sales they used to have at kmart it’s someone somewhere saying if you buy now you’ll get a better deal.
Our business has a lot of stigma starting from the fact that selling home improvements was the original wild west of sales where anything goes and you could lie and say anything you wanted to get them to sign on the dotted line like the old time aluminum siding sales people of the 1960’s. They had the reputation that we today can associate with the used car sales people who inhabit the back corners of our cities. Today people are too smart and with regulations for in home sales like the consumer rights laws, the 3 day recession period and the ability to research on the internet has made the customer a lot more savvy.
Yet the one call close with some type of discount when you buy today is still used and the reason why is that it works. I won’t mention names but some very credible billion dollar home improvement companies, huge big box stores to local window companies all use this to great success. And still get great reviews.:)
The Fix: When to Use a Today Discount (And When NOT To)
The problem with the today discount is not that there is one but how it is done and how it is used. If the customer is properly sold on the product which means that they can see the value and want it then the today discount when done correctly should only be used to create urgency for them to do it now. Not to drop the price so it matches the low value you have built in the sales presentation. Not to put pressure on a customer to make them buy something they don’t really want. And when it’s done right it doesn’t seem sleazy and manufactured like “tell you what if you buy now we’ll knock another $1000 off how’s that sound?”
The best way that a today discount should be used is when the customer is sold and the only thing missing is the urgency. In other words they say “I want it, I think it’s worth it and I can afford it..just give me a day and I’ll call you back.” The worst place to do a today discount is the opposite ..when they say “I don’t know if I actually want this and I want to look around” or “it’s not worth this much to me.” A today discount is the ultimate way of asking someone to buy and as a professional sales person you have no right to ask someone to buy anything unless they want it, think it’s worth it and can afford it.
That’s why the today discount should be done last not just delivered with the price along with everything else. You need to sell your product ,deliver the price, isolate objection to the money, then solve the money problem which is usually affordability and then when you have solved everything but the urgency that’ when you do the today discount. Unless you have solved the problem it does seem high pressure and more importantly it won’t work. I want to think about it .. Well if you buy now we can save you….” What is that? The way it works it that it should be more like . I want to think about it. No problem….so your only concern is the price yes. .and when you say price it’s whether you can afford it…yes…so it we do it like this then is affordable. ..yes that’s great . I can afford that. …now do you see how doing it here how much more impact the today discount will have. Everything is solved you just need to create urgency. A today discount is not to compensate for weak value building in the sales presentation where you are at $20,000 and they think it’s worth $18,000 and your today discount drops them down to the $18,000. They should already think it’s worth the $20,000 and the today discount just get’s them to do it now.
The best way to do a today discount is as a business proposition and explaining to the customer how them buying now saves the company money and that they are just passing it on to you. When it’s done right it makes sense.
Next Steps: Learn the Full A-to-Z Process of Selling Home Improvements
This is just one piece of the one-call close. The most important part of closing is getting people to actually want what you have first — that’s what makes everything else work. And if you really want to learn everything about closing and the full A-to-Z process of selling home improvements the right way, I go deep into all of it inside my full program, The Art of Selling Home Improvements. You can check it out with the link below.”
Rules for Ethical Home Renovation Sales Discounts (Honest, Equal, Real)
Somethings that I believe are necessary to sell with a today discount is that it should be honest and credible. It should be an option you offer to everyone and not just used on who you want. Everyone should be able to take advantage of it and it needs to be real. In other words they shouldn’t be able to get that price if they call back or you are lying and it’s not good for your soul. The today discount is really for today.
Great sales people sell by telling the truth in the best possible light.
Handling “I Feel Like You’re Pressuring Me” Without Losing the Sale
Some tips that will help if they object with “I fell like you are putting pressure on me”. In my experience the best way to handle this is just to take it away. “I don’t want you to feel pressured and if you do then just don’t do it now. Even if you don’t save the extra $1000 it’s still a great price and value. “ then if you hear “ but I want that “ you can start moving in the right direction. Understand that if they are complaining about this that it’s actually a buying sign because if they didn’t want it they wouldn’t be complaining about the today discount. If they weren’t planning to buy they wouldn’t care that there was a today discount. When they complain about it means that they are interested in doing business with you.
Holding Your Ground: Take-It-Away Close, Silence, and Staying Professional
You have to hold your ground and not let them off the hook. I’ve heard it all “Can’t you just give me 24 hours?” “What if I come into your office then you won’t have to make a special trip’” Usually the way I handle that and also works well for people who are trying to negotiate me on other things is to push it back on the company. “Look if it was my company I would let you wait a week and then call me back and you would get the same price but it’s not and I work for them and follow the policy. That’s why one of the best closes I use is to almost take it away. This close has made me a lot of money when using a today discount and they are right on the edge.
Can I make a suggestion…sure Ron. If your’re not sure if this is the bathroom you want and we are the company you want to do business with then I wouldn’t care if you were saving $10,000 you shouldn’t be doing it. But If you do want this bathroom and we are the company that you want to do business with and you’re only concern is the price then whether you like it or not you are never going to get a better combination of value and price with the sale we have going on and this additional discount. But you do it when you want okay….Then shut up and let the silence pressure them not you. Don’t be weak here. Remember once you leave it’s over anyway and when the conversation starts going that way you are really close
If you like these type of videos and want to know more about selling and closing check out my article “Using Emotions To Sell” or the whole collection of resources about closing home improvement sales.
Happy Selling!
