Speaker A
your discounts must convey urgency.
Learn how to price plumbing jobs with integrity, create urgency, and close sales effectively from Million Dollar Plumber.
Key Takeaways
- Price integrity is crucial for customer trust and successful sales.
- Urgency in discounts motivates customers to act quickly.
- Directly asking customers about their budget helps close more deals.
- Technician-office collaboration in front of the customer builds credibility.
- Knowing your true costs and limits ensures profitable pricing.
What the video covers
- Emphasizes the importance of price integrity and credibility when offering discounts to customers.
- Discourages giving away free items that do not make sense to the customer, like free toilets with water heater installs.
- Stresses creating urgency in offers to encourage customers to commit without walking away.
- Recommends asking customers directly about their budget to better tailor pricing and close sales.
- Describes a successful sales approach involving a technician calling the office in front of the customer to negotiate within budget.
- Highlights the importance of knowing your honest hourly rate and drop-dead price to maintain profitability.
- Mentions avoiding overcomplicated tactics like pushing yard signs or reviews, opting for simpler direct communication.
- Encourages persistence and confidence in closing jobs, even when customers initially hesitate or give excuses.
- Acknowledges the emotional and practical challenges plumbers face, especially during difficult times.
- Suggests empowering office staff to assist in pricing and negotiation to free up technicians.
Full Transcript — Download SRT & Markdown
Speaker A
Okay.
Speaker A
Now, you, now, you can get by without doing this.
Speaker A
I'm going to explain how how I use this.
Speaker B
Explain it.
Speaker A
Okay, and and how you can use it too, but you can't get by without price integrity.
Speaker A
Okay, you got to have the price integrity in place.
Speaker B
Right, yeah.
Speaker A
Okay, and it has to be credible, okay, whatever discount you go from there, it must make sense to the customer.
Speaker A
Okay, understand.
Speaker A
Why why are you giving this to me?
Speaker B
Right.
Speaker A
Okay, it's it's that simple, why why why why are you doing this for me?
Speaker A
Why why why, okay, all right.
Speaker A
It must it must make sense to them, if it doesn't make sense on why you're giving me something, okay?
Speaker A
That's why I'm not a fan of this this idea of giving like free stuff, like, we're going to do, I'll do I'll do this water heater and we're we're throwing a free toilet.
Speaker A
What free?
Speaker A
No one gets anything, there's nothing for free, except the seven must knows to be a million dollar plumber.
Speaker A
Okay, all right.
Speaker A
Okay, but that doesn't make sense to a customer.
Speaker B
Good point.
Speaker A
Why why would you why would you throw?
Speaker A
Why why would you give me a toilet for free?
Speaker A
How how how how can you do that?
Speaker A
Okay, toilets cost money.
Speaker A
And you get your time to put in it.
Speaker A
And you explain it, so you lose them with that.
Speaker A
Okay, it must be credible.
Speaker A
Okay, all right.
Speaker B
Okay.
Speaker A
But urgency.
Speaker A
Okay, and here here's how I use urgency.
Speaker B
Okay.
Speaker A
Okay, right now, I want I want you guys to do this.
Speaker A
Okay, my my my clients know this.
Speaker B
What?
Speaker A
Okay, all right, and and those in the academy will go this.
Speaker A
I'm I'm just going to give everybody because especially during this time right now.
Speaker B
You're going to give a freebie, huh?
Speaker A
Okay, yes, I'm going to give you a freebie.
Speaker B
You listening?
Speaker A
Because I love you.
Speaker A
I love you, brother.
Speaker A
Okay, all right.
Speaker A
No one walks out of the house.
Speaker A
You're not walking, you get the calls you do get for those of you aren't scared to go out.
Speaker A
Okay.
Speaker B
Scared.
Speaker A
Scared.
Speaker B
Put your big boy pants on.
Speaker A
That's right, okay.
Speaker A
All right, if Mrs. Jones calls you, okay, all right.
Speaker A
Especially during now, she she wants wants things taken care of.
Speaker B
Mhm.
Speaker A
Okay, so there should be no reason walking out of the house.
Speaker B
Nope.
Speaker A
All right, even during normal times, again, no one wakes up in the morning wants to call a plumber.
Speaker B
Mhm.
Speaker A
No one wakes up in the morning and wants to call a plumber.
Speaker A
They're not calling you out there just to price shop, okay, once you get out there.
Speaker B
Mhm.
Speaker A
All right.
Speaker A
They're not they're just they just don't want to meet your plumber, they didn't just think you have a hot booty.
Speaker A
Okay, they want the hot the hot plumber out there, so don't be thinking you're all that.
Speaker B
Oh.
Speaker A
Okay.
Speaker B
Oh.
Speaker A
All right, ain't ain't working, Mrs. Jones ain't lonely.
Speaker A
Okay.
Speaker B
Where are you going with that?
Speaker A
All right, okay.
Speaker A
They want to get the job done.
Speaker B
Mhm.
Speaker A
Okay, they they want to get taken care of.
Speaker A
All right, so you're not walking out of the house.
Speaker B
Nope.
Speaker A
All right.
Speaker A
So, what we did, okay, in in my in my business.
Speaker A
And it worked worked great for years.
Speaker A
Okay, great.
Speaker B
You're welcome, Jason.
Speaker A
All right, we had we had like almost 100% closing rate.
Speaker A
Okay.
Speaker B
We had 110% closing rate.
Speaker A
Yeah.
Speaker B
Okay.
Speaker A
It's more like 97.8%.
Speaker A
Okay.
Speaker A
Because we would ask at this point.
Speaker A
My technician would ask Mrs. Jones.
Speaker A
Well, Mrs. Jones, what what what's in your budget?
Speaker A
What would you thinking it should be?
Speaker A
Okay.
Speaker A
And even if it was ridiculous.
Speaker A
By the way, most people are fair.
Speaker A
So say it was a water heater and we quoted, you know, $1,500.
Speaker A
And even after the discount, it was still like too much, I I don't know, I got to check with my husband.
Speaker B
Mhm.
Speaker A
They've already talked.
Speaker A
For those of you married, you know that you've already talked with each other.
Speaker A
You know what you're going to spend and can't not going to spend and whatever, okay?
Speaker A
That's that's just an excuse.
Speaker A
Okay.
Speaker A
All right.
Speaker A
So you got you got to push through that.
Speaker A
And we would have our guys ask, well, Mrs. Jones, what what were you looking to spend?
Speaker A
Well, even if she came back and said, well, I didn't think it'd be any more than $400.
Speaker B
Mhm.
Speaker A
Well, your technician and you know that it's not going to be more, you know, it needs to be more than $400, right?
Speaker A
Okay.
Speaker B
Right.
Speaker A
Okay.
Speaker A
All right.
Speaker A
Do I have, did you have a note here, sweetheart?
Speaker B
I see.
Speaker A
Um, do I have a note?
Speaker B
Or I see something, um.
Speaker A
Hm.
Speaker B
I see a timer.
Speaker A
Oh.
Speaker B
Yeah.
Speaker B
Do you?
Speaker A
Yeah.
Speaker B
Okay.
Speaker A
Okay.
Speaker B
But you're fine.
Speaker A
All right.
Speaker A
I didn't know if you you cutting me off.
Speaker B
No.
Speaker A
The lovely Laura's going to wrap it up.
Speaker B
Wrap it up, Mr.
Speaker A
All right.
Speaker A
Before we start.
Speaker A
She says, dance monkey.
Speaker A
And now now she's pulling the plug on me.
Speaker A
Okay.
Speaker B
Could this day get worse?
Speaker B
I just broke a nail.
Speaker A
You just broke.
Speaker B
And there's and and my manicure is not essential.
Speaker B
Ladies, is it?
Speaker B
Ladies, or anybody out there?
Speaker B
What what is what is.
Speaker A
We're going personal now.
Speaker A
Will my brothers pray for me, please?
Speaker B
Hello.
Speaker A
Okay, it's going to get rough in the Behney household.
Speaker B
Okay.
Speaker B
Did anybody else, wives, women, something.
Speaker A
It's getting ugly.
Speaker B
Out there relate about.
Speaker A
It's getting ugly.
Speaker B
Nails and hair and.
Speaker A
We're totally losing track of this.
Speaker B
Other things that need to get done that can't get done right now.
Speaker A
It's getting ugly.
Speaker B
Oh my.
Speaker A
But.
Speaker A
It's getting ugly.
Speaker A
I didn't say you're getting ugly.
Speaker A
You guys heard me, I didn't say she's getting ugly.
Speaker A
I said it's getting ugly.
Speaker A
It's getting ugly.
Speaker B
Okay, go ahead.
Speaker B
Sorry.
Speaker A
Okay.
Speaker A
Okay.
Speaker B
Continue.
Speaker A
I'm teaching here.
Speaker B
I know.
Speaker A
Okay.
Speaker A
Okay.
Speaker A
Urgency.
Speaker A
Okay.
Speaker B
Mhm.
Speaker A
So where were we?
Speaker B
Okay, I don't know.
Speaker A
Okay.
Speaker A
Hey, it is just simple.
Speaker A
Ask Mrs. Jones, what what's in your budget?
Speaker A
Okay.
Speaker A
All right.
Speaker A
Larry says, we ask them to do something for us such as Facebook like, five star review.
Speaker A
Let me put a yard sign, etc.
Speaker A
That works for Larry.
Speaker A
Larry, go for that.
Speaker A
That works for Larry.
Speaker A
Um, I never took it that far.
Speaker A
I just be be blunt with that.
Speaker A
I just went.
Speaker A
Which is good.
Speaker A
That's good.
Speaker A
Very successful with that.
Speaker A
Okay.
Speaker A
Um, I wanted to make it easier on my guys, Larry.
Speaker A
Uh, because, um, I did the the yard signs would wind up being in the trash.
Speaker A
Okay.
Speaker A
The guys didn't wouldn't, you know.
Speaker A
Um, by the way, Google shut you down if they find out you hit them up for reviews.
Speaker B
Well, no, you can hit them up for reviews.
Speaker B
You just don't pay.
Speaker A
You can't pay.
Speaker B
You can't pay.
Speaker A
They get away.
Speaker B
That's what Larry's saying.
Speaker A
Right, I know.
Speaker A
That's what Larry's saying.
Speaker A
You just got to be right, careful.
Speaker A
I get it.
Speaker A
Okay.
Speaker A
I I went to the lazy I went to the lazier method.
Speaker A
Made it easier on my guys.
Speaker B
Mhm.
Speaker A
Just ask Mrs. Jones, what what was their budget?
Speaker A
Okay.
Speaker A
So even if they came back in like on a water heater example, $400.
Speaker A
Didn't have to train your guy, don't say, well, we can't do it for that.
Speaker A
Okay.
Speaker A
All right.
Speaker A
At this point.
Speaker B
Right.
Speaker A
Our guy would call into the office right in front of Mrs. Jones.
Speaker B
Right.
Speaker A
Okay, right in front of Mrs. Jones.
Speaker A
Okay.
Speaker A
Good cop, bad cop happening here.
Speaker A
Okay.
Speaker A
We've now we've if we've established price integrity.
Speaker A
Okay, you know what the price is and why it's that, okay.
Speaker A
Credibility.
Speaker B
Mhm.
Speaker A
Okay, we've given one discount.
Speaker A
But that's still not there.
Speaker A
Now.
Speaker A
Okay.
Speaker A
We're we're saying what we don't want to walk away.
Speaker A
What were you thinking?
Speaker A
I was thinking it was $400.
Speaker A
Okay.
Speaker A
Now our tech's going to call into the office in front of Mrs. Jones.
Speaker B
Right.
Speaker A
Explain that we're here with Mrs. Jones, she needs a new water heater.
Speaker A
I've done this, I've done that, blah, blah, blah.
Speaker A
Here we are.
Speaker A
She in her budget is $400.
Speaker A
Okay.
Speaker A
Well, we're listening for.
Speaker A
That's why it's important to know what your honest hourly rate is.
Speaker A
And, you know, to know what your correct pricing is up front.
Speaker B
So important.
Speaker A
So important.
Speaker A
This is why it's so important.
Speaker B
Mhm.
Speaker A
Because now you know what your drop dead is.
Speaker A
Okay.
Speaker A
And for those of you that are my my private clients that are in the academy, know what that is.
Speaker B
Right.
Speaker A
Okay.
Speaker A
And it's so important to know that.
Speaker A
Okay.
Speaker A
And your gal that answers the phone.
Speaker A
Is can do this for you.
Speaker A
You don't have to be there.
Speaker A
In fact, you could be like I we like to I wanted to be again, you know, next to the water under the palm tree.
Speaker A
You know, drinking an adult beverage.
Speaker A
Okay.
Speaker B
And my nails would be done.
Speaker A
Okay, and they'll the lovely Laura's nails were done and she was tan.
Speaker A
All right, remember when we were tan and.
Speaker B
Oh, yeah, yeah.
Speaker A
Feeling the sun.
Speaker A
Oh, okay.
Speaker A
All right.
Speaker B
Okay, go ahead.
Speaker A
Okay, but so it's important that you have these these price that you know really what your pricing is.
Speaker A
Okay.
Speaker A
At that point, you can come back, all right.
Speaker A
And even this happened.
Speaker A
I mean, I did we did this all the time.
Speaker A
Okay.
Speaker A
If you've established price integrity and incredible credibility.
Speaker A
Okay.
Speaker A
Gave a credible discount and here.
Speaker A
We're going to give Mrs. Jones a credible reason.
Speaker A
Well, Mrs. Jones, I don't have any more work today.
Speaker A
Okay.
Speaker A
We don't have any more we have open time.
Speaker B
Open time.
Speaker A
Which doesn't matter.
Speaker B
It's your lucky day.
Speaker A
You have open time.
Speaker A
Okay, it's okay to tell them you're not busy.
Speaker A
Even if you're slammed.
Speaker A
A bird in the hand is worth two in a bush.
Speaker A
Okay, I'm much rather give Mrs. Jones a big discount.
Speaker A
And I'm going to tell you where that is because I've sold my time, which is the whole I'm not going to go down that route.
Speaker A
That's why it's so important to know what you're selling and how much you need to sell of it.
Speaker A
Which creates your honest hourly rate.
Speaker A
Okay, if you don't know those things.
Speaker A
You're not being very honest, okay, with the customer and yourself.
Speaker A
Okay.
Speaker B
Okay.
Speaker A
But when you know those kinds of things, now you can know that your drop dead price on this like on this water heater.
Speaker A
Which covers all your time, not just the time on the job and your materials.
Speaker A
Okay, not not just that, but all your time it takes to run your business.
Speaker A
All right, then you then you know that.
Speaker A
Hey, I can do that water heater at my drop dead for 950.
Speaker A
Okay.
Speaker A
All right.
Speaker A
And you still sold your time, which is a whole another thing to get into.
Speaker A
Which is extremely important.
Speaker A
Which you much rather have that than walk away.
Speaker B
All day long.
Speaker A
All day long.
Speaker A
You'll you do that all day long and twice on Sunday.
Speaker A
Okay.
Speaker A
And and you'll be a wealthy man.
Speaker A
Okay, all right.
Speaker A
So, then you come back to Mrs. Jones.
Speaker A
You say, hey, you tell your tech, let Mrs. Jones know, we'd love.
Speaker A
We'd love to take care of her today.
Speaker A
We love our new customers.
Speaker A
We love our dog lovers.
Speaker A
Whatever the.
Speaker B
We love our repeat customers.
Speaker A
We love our repeat, whatever whatever it was.
Speaker A
Okay.
Speaker A
And we need we'd love to take care of her today because we have open time.
Speaker A
And if she'll do it for today, we can do it at our cost.
Speaker A
For $950.
Speaker A
Or we always made it more.
Speaker A
So say she said it was $900, we you'd come back and say.
Speaker A
We can do it for, you know, 1150 or something like that.
Speaker A
You see what I'm saying?
Speaker A
Right, that.
Speaker B
Right.
Speaker A
You do that, you'll close every time.
Speaker A
Because Mrs. Jones doesn't want to call around.
Speaker A
She doesn't want to call around to have other plumbers come in the house.
Speaker B
Nope.
Speaker A
Okay, and if you've established price integrity and incredible credibility.
Speaker A
Okay.
Speaker A
And when you when you're really playing, you provide urgency.
Speaker A
Okay.
Speaker A
I think, uh, with Larry's.
Speaker A
Larry's urgency here, the boss's urgency is the trade.
Speaker A
That's the same kind of a trade-off.
Speaker A
Okay, uh, his was, if you'll do this for me.
Speaker A
I'll do I'll get I'll give this to you.
Speaker A
Okay.
Speaker A
You give me, let me put a yard sign in.
Speaker A
Let me advertise.
Speaker A
Let me advertise to your neighbors.
Speaker A
Right.
Speaker A
Okay.
Speaker A
I'll give you a good discount.
Speaker A
Okay, that's that's that same kind of a thing.
Speaker A
Okay.
Speaker A
I I used urgency instead.
Speaker A
Okay, I need it today.
Speaker A
We don't have any other jobs.
Speaker A
I really want the work.
Speaker A
So we we kind of did the, you know, the sad the sad dog eyes.
Speaker A
You know.
Speaker A
I need the work.
Speaker A
Please.
Speaker A
Okay, all right.
Speaker A
But that that's that same kind of a thing.
Speaker A
You do those kinds of things.
Speaker A
All right.
Speaker A
It's a very it's a very good tool.
Speaker A
Okay.
Speaker B
Everybody will be win, win, winning.
Speaker A
Win, win, winning.
Speaker A
So there you have it.
Speaker A
All right.
Speaker A
Any questions?
Speaker A
Bring it.
Speaker A
Okay, I got a little just a little bit more time left here.
Speaker A
All right.
Speaker B
Are you sure?
Speaker B
I already had the timer go off and.
Speaker A
The boss.
Speaker B
Boss knows.
Speaker A
From the boss.
Speaker A
Okay.
Speaker A
So there you have it, guys.
Speaker A
It is just simple.
Speaker A
Okay.
Speaker A
It is just simple with discounting if you do it right.
Speaker A
Okay, and discounting will make you money.
Speaker A
All right.
Speaker A
And make your customers very happy.
Speaker A
You'll be happy too.
Speaker A
All right.
Speaker A
If you, you know, you understand your customers.
Speaker A
All your customers pay for your discounting.
Speaker B
Yes, they do.
Speaker A
Okay.
Speaker A
But you must establish price integrity.
Speaker A
All right.
Speaker A
You must establish credibility with the discount.
Speaker A
And when you when you're really playing, you provide urgency.
Speaker A
Okay.
Speaker A
I think, uh, with Larry's.
Speaker A
Larry's urgency here, the boss's urgency is the trade.
Speaker A
That's the same kind of a trade-off.
Speaker A
Okay, uh, his was, if you'll do this for me.
Speaker A
I'll do I'll get I'll give this to you.
Speaker A
Okay.
Speaker A
You give me, let me put a yard sign in.
Speaker A
Let me advertise.
Speaker A
Let me advertise to your neighbors.
Speaker A
Right.
Speaker A
Okay.
Speaker A
I'll give you a good discount.
Speaker A
Okay, that's that's that same kind of a thing.
Speaker A
Okay.
Speaker A
I I used urgency instead.
Speaker A
Okay, I need it today.
Speaker A
We don't have any other jobs.
Speaker A
I really want the work.
Speaker A
So we we kind of did the, you know, the sad the sad dog eyes.
Speaker A
You know.
Speaker A
I need the work.
Speaker A
Please.
Speaker A
Okay, all right.
Speaker A
But that that's that same kind of a thing.
Speaker A
You do those kinds of things.
Speaker A
All right.
Speaker A
It's a very it's a very good tool.
Speaker A
Okay.
Topics:plumbing pricingprice integritysales closing techniquescustomer urgencyplumbing discountsMillion Dollar Plumberbudget negotiationplumbing business tipsservice pricing strategycustomer trust
