Do phrases like “it’s too expensive,” “I’m not really ready yet,” and “I’ll think about it” sound all too familiar? Here’s the thing: there’s no way around these objections. Unless your sales presentation wasn’t thorough enough or you didn’t build strong rapport, your prospects are always going to have different types of objections. Instead of looking at these objections as a negative thing, think of them as requests for more information. After all, having the right attitude is half the battle when overcoming objections.
In the homebuilding industry, luxury builders are often faced with the same common sales objections time and time again. In this blog post, we’ve compiled the top seven most common objections and provided strategies so you can overcome them in your next sales meeting. Keep reading for all the details.
Did you know that builders who do charge for quotes are eight times more likely to win the job than those that don’t? The reality is that builders giving away free quotes are really just offering a rough estimate of what the job may cost. When you face this objection from a prospect, tell them this fact and emphasize that quoting a project of this size takes hours of work and customization. Also remind the client that quoting a project takes teamwork, and that along the way, they’ll be connecting with your design team to create the home of their dreams on time and on budget.
The most common reason someone gives this objection is because the price you gave is too high. Make sure to address this possibility right away, to uncover the root of the objection. If price wasn’t the issue, then keep probing to get to the real reason behind the objection. It’s essential for you to understand all of the prospect’s concerns, so you can address them efficiently and effectively. “I need to think about it” is becoming the number one objection in the homebuilding industry, so when you get this response, ask the client how long they’ve been thinking about the project. More often than not, they’ve been contemplating building their dream home for months, even years. So tell them “you can quit thinking about it and start doing it today.” Then, let silence work for you and wait for a response.
Regardless of if you’re building a house for $150,000 or $50 million, you’re going to get this objection. Upon hearing this, you need to dig deeper to show them the true value of your services. When people complain about the price being too high, it means they don’t see the full value of what you’re offering. Rethink your positioning, and also ask if they’re comparing your price to another. You can point out deficiencies in the other offers they have, and truly show why your services are superior and worthy of a higher price tag.
When you hear this objection, ask the prospect how they plan to decide which quote to proceed with. When you get their response, ask if it would make sense to go through both quotes together so you can help them determine if they are getting the best possible price and value from the other builder. Then, prove that your offer is the best one.
To this objection, propose a hypothetical: “Not saying I can match this price, but if I can and with all things being equal, why would you go with me and my company over the other?” Their answer will reveal what they like about your company, giving you leverage in the value versus price battle.
This objection warrants the response of you asking to take a look at the other quote, and assuring the prospect there are things the other builder overlooked to offer such a low price. Suggest that you schedule a time to thoroughly go over the other quote to ensure the other company didn’t overlook any essential aspects of the build. This level of personalization and care isn’t taken by many companies, so this strategy will help you stand out and sway the prospect towards choosing you, despite their initial price objections.
Tell the prospect you totally understand, and ask them “if XXX were to tell you to go with whatever you think, would you choose us?” If you get a ‘yes’ to this question, start drawing up the paperwork, and tell the client you’ll call them tomorrow to confirm that XXX approves of their decision.
This is one of the easiest objections for a prospect to come up with, but one of the hardest for builders to manage. When you hear this, tell the prospect you understand and work with them to plan an alternate time to meet. After confirming the meeting, ask 1-2 quick qualifying questions to ensure they are a valuable lead to pursue.
To overcome objections and build value, CLB Network has developed a four step proven process. To build value, we focus on building trust and a strong relationship with the prospect, thoroughly interviewing them, building a foundation of credibility, and demonstrating strong features and benefits of your services. To overcome objections, we recommend encouraging and questioning, confirming understanding, addressing the concern, and checking in with the prospect to uncover all other underlying misgivings. To read more about CLB’s strategies for building value and overcoming objections, download our latest ebook here.
Handling objections can seem like one of the most intimidating steps in the sales process for luxury home builders. However, it is also one of the most important to build trust and rapport with prospects and ultimately get the job. Contact CLB Network today to connect with our team of experts and learn how our proven solutions and processes can help your company land more projects at higher profit margins.
Find out how to overcome the seven most common objections every custom home builder must deal with. Each objection is more than just a simple “no” – it’s an opportunity for you to reposition and redirect your prospect. Download to learn more.
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