Systemise Your Team for Increased Profits Section10
‘Systemise Your Team For Increased Profits’ Implementation Guide
10. The Close ‘The Close’ provides you with a way to present the price of the work at hand to the customer that; presents the recommended work as mandatory shows the savings through add-ons makes the price including the Membership the obvious option makes the decision easy gets you a big “thank you” instead of an argument
‘The close’ explained ‘The close’ is the method used to present the recommended work and pricing to the customer. The prices are not presented initially on business letterhead or a tax invoice, it is hand-written on a simple piece of paper (not a scrap piece of paper found on the floor of your vehicle). This makes the customer feel like we have provided a special discounted rate just for them, makes the information easy to read and assists the understanding and value of the discount on offer to complete all the work today.
The image below is the information Stewart presents to Mrs.Smith in the accompanying ‘Systemise Your Team For Increased Profits’ DVD. Stewart was called to the property due to a dripping tap. Whilst he was there he conducted a ‘Plumbing & Safety Inspection Report’. From this ‘Plumbing & Safety Inspection Report’ Stewart found an additional three items that required attention. Through the method of ‘the close’, Stewart can explain to Mrs.Smith that it is cheaper to complete all four jobs at this one time than it is for Stewart to return to the property on four separate occasions. The price is cheaper again with the offer of the Membership club. A club that allows ongoing communication and hence builds a relationship to encourage repeat work and increase the customers lifetime value.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
35
‘Systemise Your Team For Increased Profits’ Implementation Guide
N.B; This information would be handwritten on a blank piece of paper.
This information has come from the Plumbing pricing manual using the REGULAR and MEMBER sections. The customer can see you refer to the pricing manual when preparing this page, hence they are aware you have not made up the rates, however, the work recommended (above) would be impossible to explain to a customer through the use of the manual alone. Using the pricing manual on its own does not allow you to present a total bottom-line price for the complete job in an easy to comprehend format. Note: we prepare this quote in front of the customer, sitting at their kitchen bench. We personally feel it's better for customers to see that the prices come out of a book and are not "made up”.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
36
‘Systemise Your Team For Increased Profits’ Implementation Guide
So what did Stewart write down for Mrs.Smith? Let’s go through each column and row to understand the information!
Column 1: Performing work on different days
Column 2: The list of initial work plus recommended work
© 2010 Lifestyle Tradie Pty Limited
Column 3: Performing work on the same day - today
www.lifestyletradie.com.au
Column 4: Performing work on the same day – today – in addition to purchase of Membership The obvious option.
37
‘Systemise Your Team For Increased Profits’ Implementation Guide
Where do the rates from each column come from? Great question. Let’s take a look at the information again in light of the Plumbing Pricing Manual.
Column 1: REGULAR section All rates from 1st Job column. Shows the price if all work was performed on different days.
Column 2: The initial work plus recommended work
© 2010 Lifestyle Tradie Pty Limited
Column 3: Tap service is from REGULAR section/1st Job column. All other rates from REGULAR section/Add On column. Shows the price if all work was completed on one day – today.
Column 4: Joining the Membership Club for $49 provides customer with instant 10% discount on total job if work completed on one day – today. $638 x 10% = $574.20 Add membership fee of $49 to equal grand total $623.20
www.lifestyletradie.com.au
38
‘Systemise Your Team For Increased Profits’ Implementation Guide
Using the above image, lets take you through the steps to write up ‘the close’. What are the 4 steps to write up ‘the close’?
Step 1: Using one piece of scrap paper, all rates will be written side by side. The first thing you write on the paper is COLUMN 2, the list of recommended work – the initial job in addition to any additional work.
Column 2: The initial work plus recommended work
Column 2 shows the initial job – kitchen tap service – the reason Stewart was called to the house, in addition to a list of recommended work as revealed through the results of the ‘plumbing & safety inspection report’. As you can see three additional jobs have been recommended to Mrs.Smith 1- replace the TPR valve (hot water service) © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
39
‘Systemise Your Team For Increased Profits’ Implementation Guide
2- replace the anode (hot water service) 3- install PRV (outside)
Step 2: Step 1 and step 2 go hand in hand and are written together. Step 2, write on the paper the detail in COLUMN 1.
Column 1: Performing work on different days
Column 1 shows the prices from the REGULAR section using the 1st Job column in the manual. These rates represent each individual job should Stewart perform the work on different days. Flick through the Plumbing Pricing Manual find the relevant job/price and write it onto column 1. Total price at the bottom equals $788.00 © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
40
‘Systemise Your Team For Increased Profits’ Implementation Guide
Step 3: Write on the paper the detail in COLUMN 3.
Column 3 reflects the prices as follows:
Column 3: Performing work on the same day - today
Column 3 shows the initial job (tap service) price from the REGULAR section using the 1st Job column in the manual. This rate includes the 1st job rate/service call fee of $XX ($50 in the SAMPLE copy we have provided). The remaining three jobs are priced from the REGULAR section using the Add on column in the manual. Column 3 quotes the work should Stewart peform the work on the same day.
Flick through the Plumbing Pricing Manual find the relevant job/price and write it onto column 3.
Total price at the bottom equals $638.00 © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
41
‘Systemise Your Team For Increased Profits’ Implementation Guide
Already, should the customer approve all four recommended jobs there is an immediate saving of $150 ($788 - $638 = $150)
Step 4: Write on the paper the detail in COLUMN 3.
Column 4: Performing work on the same day – today – in addition to purchase of Membership The obvious option.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
42
‘Systemise Your Team For Increased Profits’ Implementation Guide
Column 4 represents the pricing as discounted with the inclusion of the Membership. First time customers are all offered the Membership club which provides an immediate 10% discount on the recommended work in addition to 10% on all ongoing plumbing/gas/drainage into the future. Write the words 10% saving onto the page to show the customer the immediate saving. Work out the maths with regard to this saving. Work completed today rate $638.00
Membership Discount
x
Job Price
= 10% discount
$574. 20
+
Membership Rate $49.00
+
=
Grand Total Job Price $623. 20
Should the customer approve all four recommended jobs TODAY, plus take up the Membership, there is an immediate saving of $164.80 ($788 - $623.20 = 213.80)
What if I don’t have a Membership Program? We highly suggest developing and offering a Membership Program to assist your database development so to build a relationship with your customer with the goal of on-going loyalty and hence increasing their life-time value. If you do not have a Membership Program you can still work with the Plumbing Pricing Manual and ‘The Close’ above. Simply follow steps 1 – 3 and present to the customer. Presenting the price to a customer on a piece of paper will still assist your explanation as to why it would be cheaper to complete all the work on one day – today. As per the example above (and as explained at the end of Step 3), Should the customer approve all four recommended jobs there is an immediate saving of $150 ($788 - $638 = $150)
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
43
‘Systemise Your Team For Increased Profits’ Implementation Guide
Gaining approval for the Add-ons The Add-ons have come specifically from the results of conducting the ‘Plumbing & Safety Inspection report’ and/or from your tradesman visually seeing any problem areas without having officially recorded it on a report such as this one.
The ‘Plumbing & Safety Inspection Report’ highlights any problem areas in and around the home. Although you are initially costing the customer more money, the jobs you have recommended are jobs that will eventually have to be completed in the short term. It is all in the way you explain the necessary work – for example, you, as the professional, need to help the customer understand the importance of replacing the TPR valve and anode within the hot water heater. There is a recommendation from the manufacturer to do this. It is written on the tank. Not to mention lengthening the life of the tank, to name but a few reasons.
This visual representation of the additional recommended work with the discounts helps to explain to the customer that they're saving money overall by spending additional money today.
It has to be explained clearly and simply to guarantee a sale.
This helps you get a higher average service invoice and uses your time more efficiently by doing more tasks per call than before. This results in less driving time, less set-up time, less clean-up time and less time filling out paperwork than you would have by making multiple trips.
The more you do for your customers, the happier they tend to be because they receive more benefits from your visit than they would if you did only one small job. All the savings you’re giving the customer tends to make them appreciative of going the extra effort to write things up this way and, instead of begrudging you for all the money you’re taking from the customer, they end up thanking you. © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
44
‘Systemise Your Team For Increased Profits’ Implementation Guide
What if the customer does not want to go ahead with the Add Ons? Not every customer will be interested in the additional work you professionally recommend.
Give them the option to complete only one of the additional recommendations and/or only action the initial job you were called to complete.
Never pressure the customer. You can only provide your professional opinion and it is completely up to them how they wish to proceed.
At least with the ‘Plumbing & Safety Inspection Report’ the customer has been provided with a written report that highlights the issues in and around their home that can be actioned at a later date.
Not to mention, you too have a record of what needs to be actioned. A position, that once the customer is a club member, can be used to target for additional work in the future.
It also prevents us from getting into trouble with the customer who opts for the minimum, when one of these issues becomes the reason for their next booked job. They can't say they weren't warned!
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
45
‘Systemise Your Team For Increased Profits’ Implementation Guide
Why do we offer the customer the Membership discount on the first job? The membership is the BONUS to our customers. It provides them with an immediate 10% saving on their first job PLUS being a member provides the customer with a 10% discount on any future work. (This of course can be set at whatever you wish). Offering membership is of course optional and hence the 4th column in the diagram above is optional.
When you show the standard prices in the first column and the membership prices in the third column, you'll find that it's impossible for the total amount at the bottom of the 4th membership column to be a higher number than that of the standard rate first column. It is about showing the value and the immediate saving should they take up the offer by buying now.
This technique proves to the customer that they're not paying extra for a Membership; they're actually saving money by purchasing one, and, more often than not, guarantees a Membership sign up.
When do you use the business tax invoice? Once you’ve got the okay to proceed with the work, write it out on the formal tax invoice and gain their written authorisation. Make a note on the work order of any recommendations you made that were declined (within the recommendations section). With the job authorised, it’s now time to get to work!
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
46
10. The Close ‘The Close’ provides you with a way to present the price of the work at hand to the customer that; presents the recommended work as mandatory shows the savings through add-ons makes the price including the Membership the obvious option makes the decision easy gets you a big “thank you” instead of an argument
‘The close’ explained ‘The close’ is the method used to present the recommended work and pricing to the customer. The prices are not presented initially on business letterhead or a tax invoice, it is hand-written on a simple piece of paper (not a scrap piece of paper found on the floor of your vehicle). This makes the customer feel like we have provided a special discounted rate just for them, makes the information easy to read and assists the understanding and value of the discount on offer to complete all the work today.
The image below is the information Stewart presents to Mrs.Smith in the accompanying ‘Systemise Your Team For Increased Profits’ DVD. Stewart was called to the property due to a dripping tap. Whilst he was there he conducted a ‘Plumbing & Safety Inspection Report’. From this ‘Plumbing & Safety Inspection Report’ Stewart found an additional three items that required attention. Through the method of ‘the close’, Stewart can explain to Mrs.Smith that it is cheaper to complete all four jobs at this one time than it is for Stewart to return to the property on four separate occasions. The price is cheaper again with the offer of the Membership club. A club that allows ongoing communication and hence builds a relationship to encourage repeat work and increase the customers lifetime value.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
35
‘Systemise Your Team For Increased Profits’ Implementation Guide
N.B; This information would be handwritten on a blank piece of paper.
This information has come from the Plumbing pricing manual using the REGULAR and MEMBER sections. The customer can see you refer to the pricing manual when preparing this page, hence they are aware you have not made up the rates, however, the work recommended (above) would be impossible to explain to a customer through the use of the manual alone. Using the pricing manual on its own does not allow you to present a total bottom-line price for the complete job in an easy to comprehend format. Note: we prepare this quote in front of the customer, sitting at their kitchen bench. We personally feel it's better for customers to see that the prices come out of a book and are not "made up”.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
36
‘Systemise Your Team For Increased Profits’ Implementation Guide
So what did Stewart write down for Mrs.Smith? Let’s go through each column and row to understand the information!
Column 1: Performing work on different days
Column 2: The list of initial work plus recommended work
© 2010 Lifestyle Tradie Pty Limited
Column 3: Performing work on the same day - today
www.lifestyletradie.com.au
Column 4: Performing work on the same day – today – in addition to purchase of Membership The obvious option.
37
‘Systemise Your Team For Increased Profits’ Implementation Guide
Where do the rates from each column come from? Great question. Let’s take a look at the information again in light of the Plumbing Pricing Manual.
Column 1: REGULAR section All rates from 1st Job column. Shows the price if all work was performed on different days.
Column 2: The initial work plus recommended work
© 2010 Lifestyle Tradie Pty Limited
Column 3: Tap service is from REGULAR section/1st Job column. All other rates from REGULAR section/Add On column. Shows the price if all work was completed on one day – today.
Column 4: Joining the Membership Club for $49 provides customer with instant 10% discount on total job if work completed on one day – today. $638 x 10% = $574.20 Add membership fee of $49 to equal grand total $623.20
www.lifestyletradie.com.au
38
‘Systemise Your Team For Increased Profits’ Implementation Guide
Using the above image, lets take you through the steps to write up ‘the close’. What are the 4 steps to write up ‘the close’?
Step 1: Using one piece of scrap paper, all rates will be written side by side. The first thing you write on the paper is COLUMN 2, the list of recommended work – the initial job in addition to any additional work.
Column 2: The initial work plus recommended work
Column 2 shows the initial job – kitchen tap service – the reason Stewart was called to the house, in addition to a list of recommended work as revealed through the results of the ‘plumbing & safety inspection report’. As you can see three additional jobs have been recommended to Mrs.Smith 1- replace the TPR valve (hot water service) © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
39
‘Systemise Your Team For Increased Profits’ Implementation Guide
2- replace the anode (hot water service) 3- install PRV (outside)
Step 2: Step 1 and step 2 go hand in hand and are written together. Step 2, write on the paper the detail in COLUMN 1.
Column 1: Performing work on different days
Column 1 shows the prices from the REGULAR section using the 1st Job column in the manual. These rates represent each individual job should Stewart perform the work on different days. Flick through the Plumbing Pricing Manual find the relevant job/price and write it onto column 1. Total price at the bottom equals $788.00 © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
40
‘Systemise Your Team For Increased Profits’ Implementation Guide
Step 3: Write on the paper the detail in COLUMN 3.
Column 3 reflects the prices as follows:
Column 3: Performing work on the same day - today
Column 3 shows the initial job (tap service) price from the REGULAR section using the 1st Job column in the manual. This rate includes the 1st job rate/service call fee of $XX ($50 in the SAMPLE copy we have provided). The remaining three jobs are priced from the REGULAR section using the Add on column in the manual. Column 3 quotes the work should Stewart peform the work on the same day.
Flick through the Plumbing Pricing Manual find the relevant job/price and write it onto column 3.
Total price at the bottom equals $638.00 © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
41
‘Systemise Your Team For Increased Profits’ Implementation Guide
Already, should the customer approve all four recommended jobs there is an immediate saving of $150 ($788 - $638 = $150)
Step 4: Write on the paper the detail in COLUMN 3.
Column 4: Performing work on the same day – today – in addition to purchase of Membership The obvious option.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
42
‘Systemise Your Team For Increased Profits’ Implementation Guide
Column 4 represents the pricing as discounted with the inclusion of the Membership. First time customers are all offered the Membership club which provides an immediate 10% discount on the recommended work in addition to 10% on all ongoing plumbing/gas/drainage into the future. Write the words 10% saving onto the page to show the customer the immediate saving. Work out the maths with regard to this saving. Work completed today rate $638.00
Membership Discount
x
Job Price
= 10% discount
$574. 20
+
Membership Rate $49.00
+
=
Grand Total Job Price $623. 20
Should the customer approve all four recommended jobs TODAY, plus take up the Membership, there is an immediate saving of $164.80 ($788 - $623.20 = 213.80)
What if I don’t have a Membership Program? We highly suggest developing and offering a Membership Program to assist your database development so to build a relationship with your customer with the goal of on-going loyalty and hence increasing their life-time value. If you do not have a Membership Program you can still work with the Plumbing Pricing Manual and ‘The Close’ above. Simply follow steps 1 – 3 and present to the customer. Presenting the price to a customer on a piece of paper will still assist your explanation as to why it would be cheaper to complete all the work on one day – today. As per the example above (and as explained at the end of Step 3), Should the customer approve all four recommended jobs there is an immediate saving of $150 ($788 - $638 = $150)
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
43
‘Systemise Your Team For Increased Profits’ Implementation Guide
Gaining approval for the Add-ons The Add-ons have come specifically from the results of conducting the ‘Plumbing & Safety Inspection report’ and/or from your tradesman visually seeing any problem areas without having officially recorded it on a report such as this one.
The ‘Plumbing & Safety Inspection Report’ highlights any problem areas in and around the home. Although you are initially costing the customer more money, the jobs you have recommended are jobs that will eventually have to be completed in the short term. It is all in the way you explain the necessary work – for example, you, as the professional, need to help the customer understand the importance of replacing the TPR valve and anode within the hot water heater. There is a recommendation from the manufacturer to do this. It is written on the tank. Not to mention lengthening the life of the tank, to name but a few reasons.
This visual representation of the additional recommended work with the discounts helps to explain to the customer that they're saving money overall by spending additional money today.
It has to be explained clearly and simply to guarantee a sale.
This helps you get a higher average service invoice and uses your time more efficiently by doing more tasks per call than before. This results in less driving time, less set-up time, less clean-up time and less time filling out paperwork than you would have by making multiple trips.
The more you do for your customers, the happier they tend to be because they receive more benefits from your visit than they would if you did only one small job. All the savings you’re giving the customer tends to make them appreciative of going the extra effort to write things up this way and, instead of begrudging you for all the money you’re taking from the customer, they end up thanking you. © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
44
‘Systemise Your Team For Increased Profits’ Implementation Guide
What if the customer does not want to go ahead with the Add Ons? Not every customer will be interested in the additional work you professionally recommend.
Give them the option to complete only one of the additional recommendations and/or only action the initial job you were called to complete.
Never pressure the customer. You can only provide your professional opinion and it is completely up to them how they wish to proceed.
At least with the ‘Plumbing & Safety Inspection Report’ the customer has been provided with a written report that highlights the issues in and around their home that can be actioned at a later date.
Not to mention, you too have a record of what needs to be actioned. A position, that once the customer is a club member, can be used to target for additional work in the future.
It also prevents us from getting into trouble with the customer who opts for the minimum, when one of these issues becomes the reason for their next booked job. They can't say they weren't warned!
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
45
‘Systemise Your Team For Increased Profits’ Implementation Guide
Why do we offer the customer the Membership discount on the first job? The membership is the BONUS to our customers. It provides them with an immediate 10% saving on their first job PLUS being a member provides the customer with a 10% discount on any future work. (This of course can be set at whatever you wish). Offering membership is of course optional and hence the 4th column in the diagram above is optional.
When you show the standard prices in the first column and the membership prices in the third column, you'll find that it's impossible for the total amount at the bottom of the 4th membership column to be a higher number than that of the standard rate first column. It is about showing the value and the immediate saving should they take up the offer by buying now.
This technique proves to the customer that they're not paying extra for a Membership; they're actually saving money by purchasing one, and, more often than not, guarantees a Membership sign up.
When do you use the business tax invoice? Once you’ve got the okay to proceed with the work, write it out on the formal tax invoice and gain their written authorisation. Make a note on the work order of any recommendations you made that were declined (within the recommendations section). With the job authorised, it’s now time to get to work!
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
46
