Susan was getting disgusted. Every time she had a home staging consultation, she couldn’t get the prospect to buy because pricing was a problem. What was she doing wrong? How could she avoid pricing problems? Just then the phone rang. It was her staging buddy Nancy.
“You sound kind of down, Susan. What’s wrong?” asked Nancy. “Nancy, during the past two weeks, I have had three staging consultations and didn’t get any of the jobs. Each party thought my prices were too high. I’m about ready to give up being a small business owner. Maybe I need to go work for Pier 1 or World Market. At least the pricing is set there and I could avoid pricing problems,” replied Susan.
“Susan, what type of prospects are you attracting? Are they your niche clients? Lots of times you can avoid pricing problems by dealing with the right client,” explained Nancy.
“I thought I was attracting clients who need my services and are willing to pay for them like you told me,” answered Susan. “ I was reaching out to Baby Boomers who were getting ready to retire and downsize.”
“Nancy, there are a lot of Baby Boomers who fit that definition. Think about the last Boomer you worked with who didn’t have a problem with your pricing.”
“ Let’s see, Mr. and Mrs. Whitley were a pleasure to work with. They didn’t balk at paying for staging,” replied Susan. “What was different about them?” asked Nancy .
“They were referrals from another couple, Mr. and Mrs. Judgely . Come to think of it, they were similar in that they understood the value of home staging and needed to sell their home quickly. They were not price shopping. They didn’t ask for prices over the phone. Both couples were avid golfers.”
“Understanding the behaviors of those niche clients who bought from you is also critical in avoiding pricing problems, ” explained Nancy.
“Susan, here’s what I do to avoid pricing problems:
1. Focus in on a prospect who needs your services – Baby Boomers Downsizing and Moving to Adult Communities.
2. Narrow down the socioeconomic group you want to attract. Who has the income to afford home staging in that group?
3. Learn how to market to them. Get inside the head of a baby boomer. Research their characteristics, buying habits, and how and where to market to them .
4. Think about the Boomers with whom you have already worked. What behaviors did they share? Why were they not a problem?
5. Make sure all of your marketing materials educate your prospects about the benefits of home staging and how your company is different. Remember…your Unique Selling Proposition – Build Trust.
6. Ensure your marketing materials let your niche prospects know the type of client with whom you want to work. Include something with which they can identify.
7. When you receive a call for a consultation, prequalify the prospect so you don’t waste time with someone who can’t afford or is not willing to pay for your services. Give them a price range for your services and explain that the final pricing depends on the extent of the staging needed to be done to sell the home quickly and profitably. (always emphasize the benefit ) Let them know as real estate mogul,Barbara Corcoran, said, ‘ A buyer’s first impression is worth 5-7% of the worth of the home.’ Nancy, if you follow these pointers, you should attract the right client who will pay what your services are worth.”