Be Clear when you Quote - A Case Study
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Be clear when you quote. It sounds so simple, but as you'll see in the following case study that isn't always the case. And if you aren't clear when you quote then you could just lose the customer's trust - and business. Read on for some great quoting tips.
A customer listed a job request for a small bathroom renovation. The customer is very deliberate about what he wants and had a budget that he is working to. In this instance his budget is set at $2,500 - $5,000. The job was:
Description: Install a bathtub in a downstairs bathroom and retain the existing shower overhead. Install a new shower screen and repair tiling
When he first listed the job, three providers responded. Only two providers contacted him to set an appointment. To get the third quote, he did a 'plus 1'. The fourth provider accepted and contacted the customer.
Provider 1 - attended and verbally quoted $1,500. Subsequently sent through his written quote for $2,500 with a notation …'but could be more'
Provider 2 - attended and submitted a written quote for $10,000
Provider 4 - attended but has not submitted a quote.
The customer is now confused, annoyed and distrustful.
Provider 1 has lost his credibility by saying one thing and then changing the price without an adequate explanation.
Provider 2 has missed the brief altogether and quoted twice the high-end of the budget price.
Provider 3 & 4 have no credibility because they responded and didn't follow up with their quote.
The customer still doesn't have what he is looking for, so he re-lists the job.
Three more providers have responded. Provider 5 to respond is the same provider that responded the first time but did not contact the customer. Providers six and seven have made appointments and will (hopefully) provide quotes.
What lessons can we take from this case study?
- If you accept a referral, always contact the customer
- Before arranging a site visit, call the customer and ask a few basic questions:
- Please tell me some more about the job
- Please let me know if you have a fixed or flexible budget
- Please tell me if you have time commitments on the job
- What are your main drivers?
- Time
- Quality, or
- Price
- If you are going to spend time doing a site visit, make sure you follow up with your quote.
- If you know what the customer wants in relation to time, quality or price, then submit your quote accordingly - avoid the shocks that cause confusion and mistrust.
- Remember, the customer is also looking to find someone that they can trust. If you tell them one thing and then change the story (without proper explanation), you will have failed the trust test.
- A confused mind will not make a decision. You have a responsibility to 'discover' what the customer wants and then provide them with the information consistent with their expectation. Alternatively you must educate them why their expectations can’t be met.
This customer looks like a nuisance and a tyre kicker. In reality, they are a genuine buyer with a budget. The customer has been confused and had their trust breached and therefore will do what a normal person does, look somewhere else for the 'right' answer.
This customer will go ahead with the work and the job can be done within their budget. However, they will not buy when they are confused and will need to have all of their buying needs met, in this case: Trust, Price and Timing.
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