RC: What do you think are the negative effects of big-drop–type selling?
MD: You could tell that there was a mistrust. Customer says: “I don’t like the price.” OK then, I lower it. They’re wondering: Where’s the bottom?
We’d contact a homeowner a few days later and he would say: “This guy said it was $17,000, and somehow he made it $12,000.” When we go in behind competitors that still do this, we hear comments like that all the time.
RC: Are you closing as much business on the first call?
MD: The bottom line is that 20% of prospects won’t buy on the first night. If you tried to tell me that two years ago, I’d have had you executed. But the way we were brought up in this business, we sat there and pounded them anyway. It left them with a bad taste for the company and the salesperson. And they canceled.
RC: How do you manage the situation now?
MD: On my initial visit, I thank the prospect for the opportunity to meet. I tell them that the purpose of my visit is to see if we have the right products for their needs. I let them know I’m going to be asking a lot of questions, and I’m sure they’ll have questions for me. Then I go through my demo. Some people want a price that night. If not, I go back to the office, work up a price, and arrange for a second visit.
