No one wants to pay too much for a new kitchen or bath. Everyone seemingly wants a deal, prompting many showrooms to offer a discount on their products and services before the customer even asks for one. This practice devalues what you bring to the table, brings price into the conversation front and center and reduces your negotiating power.
As a general rule, don’t offer a discount if one is not requested. And if one is requested during the specification process, an easy response is to state, “We have not finalized the plan. Let’s first make sure that your needs and desires are being met. We can develop a plan that works within your budget.”
Many showroom customers ask for pricing information on particular products. Several BKBG members that offer install services, will respond, “The price of your new kitchen is $75,000, the oven you are asking about is included in the price.” If your customers are persistent in asking about pricing of the project or individual items, you can respond by asking them if they have a concern about budget and affordability that you might help them overcome.
Another tactic to overcome pricing objections is to ask your customers how much they believe they should pay for their new kitchen. This will reveal if customers are not convinced that the solutions you have developed represent good value or they don’t have the resources for your proposed solution. If budget is truly the issue, then you can recommend lower priced alternatives and explain the sacrifices that are associated with lower priced alternatives.
Everyone has a budget. In Trading Up: The New American Luxury, Michael Silverstein notes that consumers will spend up to three times what they budget in their heads if they are emotionally attached to a product/services. Given that kitchens are the most important room in the home, creating emotional attachments should not be too challenging. Often pricing objections are the result of the failure to connect emotionally or explain the value that you bring to a project.