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Overcome Resistance to Service Fees

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Lesson 4 – Build Value Statement

A lot of awesome things have come from the internet, but just like any innovation, it has also caused some issues.

If you were born later than 1990 you probably aren’t very familiar with these things called “Record Stores”. These were places where you would actually go and PAY for music! (Can you imagine?!?)

What does this have to do with overcoming the service fee objection you ask? We will get to that momentarily.

You see the internet has introduced an entire culture of FREE.

Free music, Free information, Free everything.

People used to appreciate the value of a true craftsman, and would understand that anyone who would make a trip to their home would have to be compensated in some form.

But now, in the “Age of FREE” it has become much more challenging. People are more resistant to pay a service free.

In addition to this, competition is much tougher than they were before. It is much easier for even sub-standard companies to look and sound legitimate

So How Do You Succeed?

Since you are reading this post, there is a high probability that your company is exceptional. Only a small percentage of companies in the service industry proactively seek out knowledge to give themselves a quality edge. (Congratulations!)

Having an exceptional service business and culture is key if you want to reduce resistance to service fees.

Why?

Because when the client is giving resistance to the service fee, they aren’t resisting YOU or your company.

They are saying one of two things:

1. Because of inexperience, and the age of “Free”, they simply assume that an evaluation would be free.

2. Your competition did not communicate charges, or their charges are less. This leaves the client confused on why anyone would be more.

The root cause for both of these is the same…

The perceived benefit of your offer is not outweighing the cost. If the benefit in the client’s mind does not outweigh the investment they will not buy. This is true for any consumer purchase.

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Communicate Your Unique Benefit

Why should I do business with you? What makes you so great? What makes you stand out?

It doesn’t matter if you are buying pickles or perfume, if what you think you will get from the purchase is not greater than what you have to pay, there will be resistance.

In order to move forward with an offer of ANY kind, the VALUE must exceed the investment amount. The investment on their part can be time, money, aggravation etc.

The good news is that you can demonstrate this VALUE with something that the client cannot get anywhere else… Your Company!

In order to build value in excess of your service fee you must effectively communicate what is DIFFERENT and BETTER about the service they will receive.

When this is done with the principles you have been learning in the Pattern for Excellence, (Be Positive, Care, Be Confident) clients will naturally see the benefit of the service and will happily accept the service fee. If done correctly, it will seem like a bargain!

Here is what you do

1. Identify your Unique Value

If you have a company of many people you might want to hold a meeting and ask the question… “What do we do on a service call that is different and better than anyone else?”

If you are an owner operator, take some quiet time to ponder the same question.

Here are a few questions to spur your thoughts:

  • Do you schedule real time appointments?
  • Do you use special equipment that will assure the repair is correct the first time?
  • Do you have a unique way to prolong the life of their equipment?
  • Do your techs have special training that will make the repair last longer or perform better?
  • Do your repairs come with a better guarantee than others?

2.  Back it up with proof

Next identify 3rd party reinforcement that will solidify your claims.

  • Client testimonials
  • BBB Reviews
  • Angie’s List

3. Use the Pattern For Excellence

Once you have identified all of your Unique Client Benefits you can use the principles in the Pattern For Excellence to deliver them to the client.

When you communicate with ConfidencePositivity, and you show that you Carethat energy and belief transfers through the phone and into the client.

When you build up all of the value and benefit they will receive from the service call, when you mention the fee, there should be little resistance to paying.

You have an awesome company! The client is fortunate to have one of your representatives to their home. Show that pride and belief when you communicate your value, and resistance to your fees will plummet!

See you next week!

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