Why You Should Waive Your Dispatch Fee

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Power Selling Pros has the great fortune to work with some of the very best service companies in the country.

These companies range from 1 CSR to more than 10, and many of these companies are highly successful.

But even with all of their success, they still often face the same common issue:

Resistance to Dispatch Fees.

After learning and implementing the steps from the Pattern for Excellence, this resistance is greatly reduced, but even the best CSRs will continue to get pushback when introducing the Dispatch Fee.

Pushback on the Dispatch Fee is common even when the customer is more concerned about the price to do the work. Many times, an inquiry about your dispatch fee is a price objection in disguise. You need to know the customer’s real concerns before you provide a solution.

Normally it sounds more like this:

CSR:                 OK, Mrs. Johnson, we can have our tech there at 4 PM. He will bring a warehouse on wheels so he can fix your issue immediately after he has provided you with an estimate. We just need to secure your appointment with our $55 dispatch fee.

Homeowner:   You know, before I commit to that I need to check a couple of things. Let me call you back.

Kind of funny how things were going so well until the Dispatch Fee came into play right?

Now, before you charge my tower with pitch-forks and torches, I am not for one minute saying to NEVER charge a dispatch fee. Quite the opposite.

What I AM saying is that IF your company has call capacity, then you might want to consider the process I am about to teach you.

The True Cost of a Call

If you look at this mathematically it can make a lot of sense.

Let’s say that every time your phone rings for service it costs you $20 in marketing and overhead (CSR, Phone, Lights etc.).

Let’s also assume that you have at least a 80% close ratio on service calls with an average ticket of $300.

Lastly, let’s add the Lifetime Value of a new client (Additional Services, Service Agreements, Replacements, and Referrals).

If you are light on calls, does it make business sense to lose clients because of the Dispatch Fee?

WARNING, Improper Execution Can Cause Problems

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As I said earlier, if you are going to selectively waive dispatch fees, you need to follow a process.

WHY?

Because if you quote a dispatch fee and then offer to waive it at the first sign of resistance you:

  1. Have ruined your trust and credibility with the client.
  2. Sent a message to your CSRs that it really isn’t that important, which can lead to a massive reduction in Dispatch Fee collections.

 

Any time you are going to give a discount, it has to be REAL. This means there has to be a credible reason for doing so. Otherwise, it is just a gimmick that can backfire on you.

Overcome Objections With I.R.A.P.

We teach a powerful yet simple way for CSRs to resolve and overcome objections called I.R.A.P.

I.solate

R.esolve

A.sk

P.ause

This can be used in many ways, but for today’s lesson we will use it to overcome the Dispatch Fee objection.

CAUTION – If the CSR did not build sufficient value by using the Pattern for Excellence BEFORE using the IRAP method, results can less than optimal, so make sure you have mastered the Pattern for Excellence before you try this over the phone.  

But let’s assume that proper value has been built and the client was on board until the Dispatch Fee was presented.

Here is what that would sound like:

CSR:                 OK, Mrs. Johnson, we can have our tech there at 4 PM. He will bring a warehouse on wheels so he can fix your issue immediately after he has

provided you with an estimate. We just need to secure your appointment with our $55 dispatch fee.

Homeowner:   You know, before I commit to that I need to check a couple of things. Let me call you back.

CSR:                 Mrs. Johnson, before you go, could I ask you a quick question?

Homeowner:   Yes?

CSR:                 It sounded like you wanted us to schedule our tech to come out until I mentioned the dispatch fee. Is that true?

Homeowner:   Well, I saw some other ads from companies saying they did not charge a dispatch fee so I thought I might check them out.

CSR:                 I understand, and if I did not know what I do about our industry I might think of doing the same. But our dispatch fee is not a gimmick to squeeze more money out of people. Practices like that are almost impossible in a competitive industry like ours. The fee covers our expenses and travel to get to our appointments.

Homeowner:   Thank you for sharing that, but I wonder why the other guys aren’t charging that then?

CSR:                 Mrs. Johnson I am not sure. I only know that to have the best equipment, the best supplies, and the best service and techs there is a cost. Our owners watch every penny in an effort to make sure we do not over charge or undercharge our clients. We want to get as many customers as we can to keep our team busy, but we also charge the right price to stay in business so we can honor our promises to our clients. The dispatch fee is absolutely necessary to assure your positive experience.

Homeowner:   I guess that makes sense, but I am on a budget, and I don’t even know how much I am going to have to spend on the work to fix my problem.

 

Bridge to I.R.A.P.

CSR:                 I understand, and I might have a solution for you.

(Isolate) Other than the dispatch fee, is there any other reason why you wouldn’t want us to send out our tech?

Homeowner:   No, that is it.

CSR:                 (Resolve and give REASON)

Well, there is something we can do. Right now we have a New Client drive. Our owners recognize that there is a cost to send our techs out, but it is my goal for you to experience the difference in customer care when we come out to your home. So I have an idea. On our website we have a one-time coupon available for new customers.

(Ask) if I applied this to your account we could waive the dispatch fee once you move forward with the work. It helps subsidize the cost of the fee when you do the work with us. This way we can keep our 4PM appointment! Will that work for you? (Pause)

Homeowner:   That would be great! Thank you very much!

This is just one way to use I.R.A.P. to overcome objections and book more calls.

To learn more about Power Selling Pros and the Pattern for Excellence contact us at (801) 253-1004.

 

See you next week!

 

Brigham

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