LockDown LIVE: Sales Psychology - Selling Roof Warranties to Maximize Commissions and Profits!

Well, hello, hello. We are live again. Adam here, the roof strategist. And welcome to another lockdown live. Before we jump in, I have a hot topic today. The psychology of sales and how to sell roof warranties. Now, for those of you that were on my email list and got the email, I'm going to be teaching you today how to pre sell these warranties. So folks are ready to buy before you even bring up the add on. Now, the reason this is so important for owners and for salespeople is because roof warranties are like the gravy on top. You see, I have on here, it's a commission bump for owners. That's a massive profit bump. And I want you to think about this. If you're a salesperson, I'm going to use easy numbers for the math. If an average warranty, let's say, is a thousand dollar add on and you're at a 40% commission, that's roughly going to be about 400 bucks. Okay. In commission, roughly now. And I know there's money coming off the top for overhead expenses. Let's just call it $400, 300 to $400 per sale of commission for you, the salesperson, if you sell these to just half of the roofs that you sell this year, let's say 50, it's an extra 10 grand. Let me double check my math. I did this right before we got on here, but you know how I am with math. So if you're doing $400 in commission per sale and, and you sell them, let's say 50 of these things, that's 20 grand in commission added from your existing people without having to sell more. As an owner, the average profit on one of these, let's call it about 600 bucks. And if you're doing, let's just say you sell 200 of them in a year, it's $120,000 worth of profit for an owner on just 200 roofs. Okay? And again, as a salesperson, you're looking at 10 to $20,000 of income. That's a tremendous amount. That is why it is so important to, to sell these roofing system warranties. Now, before we get into this, I want to just cover a couple groundwork pieces. The roofing systems. What's up, Jason? The roofing system, by the way, shout out to Jason, who just joined. Jason's been crushing it using that system. Jason, thank you for suggesting the previous video and taping the letters and all that like he's, he's doing a great job. So. And another gentleman Reached out today or over the weekend. I exchanged some emails. Names. George. George is deaf. George is coming into this. He cannot speak and he cannot hear and he's jumping into roofing sales, writing everything out. He's keeping like a running list. Went back and forth like how can we help him make sales? And the reason I want to share this stuff with you guys since Monday, Motivation Monday, right. Like people are out there making stuff happen. People not only with the COVID 19 guys. We're in a great spot. If you're jumping into this deaf and mute and making sales guys fearless. I love this. And put together a whole system like how to write down your pitch common questions, having them point. It was great. So anyway, sorry to digress. Thanks Jason. Welcome here. So to this sales psychology piece. The reason that they're so important is the earning potential that comes from selling these things as an owner and an individual. And our options are to use a third party. So. So the roofing manufacturer, GAF, CertainTeed, Owens Corning, whoever it is or the companies and sorry, these comments always distract me. Love your videos. You've been my go to since day one. The roofing just over a year ago. Christian, thanks a ton. Got another message by the way over the weekend. New guy, brand new in sales. Watch videos. First story knocked won the sale. It was great. Love hearing those stories. So keep them coming. Thanks for being here everybody. All right, so back to this. And I'm going to ignore the chat for a minute. Keep the chats coming. But I'm going to ignore them so I can get through this stuff. So don't get distracted and then I promise you I'll hit them. So a couple things what I want to hit on today is pre selling these warranties. Now what I mean here, and these are my notes. When we pre sell a warranty, we get the homeowner in the mindset that they already have it because they do not want to let it go. The reason that most salespeople struggle when it comes to selling warranties is because it is an add on after the fact. They're blindsided, right? So they've made the commitment they wanted before at the roof. And it's like, oh, by the way, we have this other thing and they already made this in their mind, big decision. But if you can kind of get them thinking as if they already have the warranty that you offer, it is much harder for them to say no because in their mind that was part of the decision. Right? And they already said yes. So they don't Want to release it. Okay. Now, it's the same. There's a lot of psychology in this. And there's a book by a gentleman named Robert Cialdini called the. It's called Influence. If you're into audiobooks or reading, highly recommend that book. So the reason to be walking through the mall, someone will hand you a sample. You put it in your hand, and you can touch, you can feel it. There's a higher likelihood of you taking it, and there's a higher likelihood of you taking it because you've already. You're experiencing it, you're seeing it, and it's right there. So why do you want to give back? So it's kind of the same. The same concept of someone already in their mind, they have it. They. They've already made the decision with these facts in place. You didn't discuss the costs involved. So this is the psychology of selling these systems. So first things first, there are a few different ways that these warranties work. And I'm not going to use any specific manufacturer because I don't align with anyone right now. I just want everyone to take this information and know that this applies. Whoever you use, I might use some names from gf. That's who we sold with. Okay? I'm not telling anyone to force into whatever channel, use the shingles that you like with a good rep. That's really what makes it or breaks it is the rep that you use. So with gaf, we had two warranties. A warranty at that point, I believe is called Systems plus. And then a golden pledge. And again, correct me if I messed up these names going off memory here. The Systems plus included the shingles and all the material. The golden pledge included the labor as well, and it was backed by a third party. So if I can sit in there through the sales process to a homeowner, before we get into the nitty gritty, you just say we offer. So in your presentation, hey, Mr. Mrs. Homeowner, you know, one thing that sets us apart as a company is we offer some of the most unbeatable warranties in the industry. And what that means for you is you have peace of mind to know that not only is the material from this manufacturer that's around for over 100 years warrantied, and our warranty is 25 years. I forget the number, by the way. It's 25 years on the material, but we also offer a warranty to cover labor for 25 years. So it's 100% covered. And you also get our warranty as A roofing company, which is seven years. So you have our warranty, the roofing manufacturer shingle warranty, and a labor warranty behind it. And that's what really sets us apart. Now, you never mentioned that there was a cost or anything like that. You just say you offer it because it is an offer. So when someone hears this presentation, they say, hey, you can offer me an installation warranty from the, from you, the roofing company. And you offer a manufacturer warranty from a leading manufacturer of shingles, which most of us that are watching are selling. Leading. I consider all them leading. Right. The big names and a labor warranty. It's a no brainer. Right? So then when you get to that process, which I'm going to talk about, that transition here in a minute, when you get to the transition of bringing up that warranty, there's a much higher likelihood of them saying yes because their decisions have already factored in. So that's the psychology piece of what I call pre selling. Getting people to feel like they already have it before we bring up the price. All right, next thing is, let's see here. There we go, the transition. Sorry, my notes I wrote today were a little rough. They weren't in the right order. So when you bring up the warranty, it's important that you ask permission. Now, if you watch my last video, you'll see how whenever you, you get to the contingency you're asking, is this something you'd like us to move forward with? Yes. Okay. Is this something you'd like, you know, do you want to learn more about how we can help you? Yes. So you're always getting to that. Yes. So when we bring this up, this warranty. Hey, would you like to hear about the warranties I mentioned earlier today when we were talking? They're going to say, oh, yeah, tell me more. Then you can go into that process. Okay, so you get the permission to present the warranty. And the idea is to offer multiple tiers. Now, you'll see these multiple tiers for a variety of reasons. One is budget and two, unlimited choices lead to analysis paralysis. Okay. Henry Ford said you can have any Model T as long as it's black. I believe it was a Model T, but he says you can have any color as long as it's black. Right. So there's one choice. And you see this. Now, companies will have different options when you choose something. I'm using colors, that's an easy one. But different colors. Pick three, by the way. I don't know if they're still doing it. But there's been some major roofing companies out there in the past that said they literally offered three colors of shingles. And that's it. There's like driftwood or whatever is comparable. Everyone's got their name for it and a couple others. Driftwood, black and brown or something. So when you limit options, people will choose one because it's limited. The other option is to use the high one as what we call a price anchor. Now I'm going to show you this because this is where the psychology comes in. So first I'm going to write this pre selling, okay? So before I get into the next bit, pre selling again, mentioning it so they feel like they already have all the goods from that warranty before you bring it up. Second is called price anchoring. So price anchor with three tiers, no more than three, three at the most. Feel free to have two. Okay, now I want to show you this. You go to a fancy restaurant, okay? Menu has all the items are $32 entrees. Holy crap, that's expensive. Then you got the filet mignon that's on there. That's going to be. They'll usually say market rate. Maybe they'll say like $48. Okay. For the filet, most entrees are around 32. And then you got like, you know, your $20 burger. I'm talking fancy restaurant here. So 32 seems mighty high. A $20 burger is ridiculous. But then when it's all compared to one another, oh, man, that entree at 32 doesn't look so bad next to the $48 steak. Restaurants use this as a common tactic because all of a sudden our mind goes to this high price and says, that's really expensive. What's a little lower than that? Holy smokes. That. That I thought was expensive to begin with. Really? Isn't that expensive? Make sense? All right, so this tactic in this approach of price anchoring can be applied to the warranty in this way. Okay? So you have your free, which is included, your standard warranty. Then you've got, let's say your extended shingle warranty, by the way, I'm sorry, my handwriting sucks at this angle. I'm trying to stay close to the mic extended. And let's call that 1650 for the roof again, for example. And then you have full coverage, which is labor and material. Oops. Am I. I think I'm running beneath the camera now. Okay, so free is one, that's two. I'm going to move three up here. Yeah, there we go. Full. And we'll call that one 1200. So, again, what would you choose? Many people may choose free, but the likelihood is people will take that middle option. And again, as a salesperson, that's for, you know, you take your 10%, 15% off the top, 40% commission, a couple hundred bucks to sit there in under 10 minutes and explain something. Get paid an extra $200, and do that 20 times in a season. Yeah. Where do I sign? Right. So there is your second option. All right. Excuse me. Second psychology trick is price anchoring. With different tiers and owners. It's important for you to help your team set this up so they know what to sell and it's consistent. We gave our team some latitude. We knew we needed to sell price per square. Never break it down that way for a homeowner, by the way, it will confuse them. All right, next thing here is another price anchoring tool that we call a comparison to cost. Okay, now, comparison to cost. What do I mean by this? Comparison to cost means this. If an average. And by the way, every. I've had pushback on this. Okay, drop a comment. I'm curious what your minimum charge is. As we drop a comment and tell me. Because everyone has a different minimum charge. Minimum charge for us was 500. Then we moved it up to a thousand, which, by the way, in my opinion, is still not enough, because then you're married to that project for warranty. We get a call for a leak. You think it's coming from here? It's over there. We. I. Chimneys are the worst. You know, we had mortar leaking bricks that were all janky flashing. That was done underneath the brick on a. On a chimney. You touched it last, you own it. Okay? So we didn't want that. Plus, by the time it takes for me to start the truck, go out there, bid it, take a look at it, dispatch the crew, get them out there. When I could go just sell the giant roof replacement, it just didn't make sense. So for us, it was a thousand bucks. For you, it's 500. Let me know in the comments what you guys charge on a minimum. But let me just use this example, okay? Let's just say it's 500 bucks, guys. Be very tough to have anyone come out, quote your roof, go get material, come back, do it, and stand behind it for under $500. So comparison. One repair is 500 to $1,000. Now, I don't care how good of an install you do in 30 years, the chances of something happening with or without your control. It's not that unrealistic, okay? Not at all. So if you compare it to the cost, say just as a, just, you know, if they say no to the warranty, say, just so you're comfortable and you understand what you're in for. Roofs aren't cheap, as you know. It's the most expensive wear item and maintenance item on a home. And an average single repair is 500 to 1,000. That's why we really encourage folks to grab these warranties and now because you can get them through us at a discounted rate. And I can help you with that right now. And essentially you're prepaying for this, but you have unlimited coverage and complete peace of mind. So there's no headaches, no surprises. Okay? So this is a huge, huge sales psychology tool is a comparison to cost. All right, now, last thing I want to hit on today, there's two pieces. One, there's actually not. Last, there's going to be a couple more. One thing I do want to hit is how important it is to focus on third party backing. So the average person is savvy these days and they know that a company isn't going to be around forever. They go out of business six years, seven years financial trouble, they move, whatever it is. But when we know that that warranty is backed by a third party, that's a huge selling point. When we were selling our extended warranties from our manufacturer that we were working with, it was fantastic to say this company's been around for 100 years. If anything happens to us, you're still backed by them, you know, because anyone, this is the one thing, and there are people here that are watching, they're probably doing this. But there's a lot of companies and a lot of owners that'll say a lifetime warranty, 20 year warranty, or they'll be one or two years old and say we offer 25 year warranty. It's like, do you want to, you know, not. It's a great selling tool. It's a great idea. Again, consumers are getting savvy. So how does a 2 year old company offer 25 year warranty? I don't know. They haven't been around that long, right? So it's a, it's a really, really powerful tool to anchor to that third party. Now the last two things I want to hit, these are the three main points, okay. For you to consider. One is to pre sell, mention it up front. Don't paint yourself into a corner as if you're giving it away. We offer, not provide, not free. We offer, okay, a comprehensive warranty to cover not only our installation, but the manufacturer's material, everything, the complete system. And that's the beauty of some of these complete systems. If you use all of the products from that manufacturer, you know, they handle it all and all the labor for beyond. So you get our warranty for five years plus the manufacturers, plus the labor, backed by a third party for 25 years. So pre sell it, okay, offer it. Number two is to price anchor. So always give three options. Show the most expensive one first. By the way, never show the cheaper one. I show the cheaper one just to escalate for this presentation. But if you are sitting down with a customer, say our Top one is 1650, middle one 600. This one's free, okay? Or whatever it is included. And oftentimes people will push into that center one that's gonna be the most common take rate, okay? And then the third is comparison to cost. When they actually look at the cost of warranty compared to it to a shingle cost, it is, excuse me, compared to a single repair cost, it's kind of a no brainer. The other thing that's really important to focus on when you look at comparison to cost is the idea of transferable, right? That's another huge selling point for folks backed by third party transferable, which can help with selling a home, all that stuff. All right, now, last thing, sorry, I'm looking down here at my notes. One last thing I want to hit today is when to use these. It is no secret that right now, I mean, guys, we're doing these lockdown lives because of what's going on. I'm not going to be doing these forever. I'm doing these during this time to support as much as humanly possible, to stimulate your mind, to get you thinking creatively about how to maximize your profits, your income, your commissions, and to take control of what you can. So it's no secret that deductibles and giving things away are going to be the new cutthroat battlefield. It's been there, it's only going to get worse. And instead of giving things away that have a hard cost to them, that hurt you from your commission standpoint and all that, this is a really good bargaining chip, so to speak, when it comes to differentiating your company, winning more business. And if you have to, instead of saying, hey, we'll eat your deductible, if the deductible is 1000 bucks or 2000 bucks, hell even 3000 with these percentage deductibles, consider using a warranty as your thing. Right? And I'm not advocating for giving things away ever. This is very unique times. We're all stepping up. That's why you're seeing me every day, Monday through Friday. And you know, it's because we want to help people. It's a true desire to help people. And if you're in that spot and it's a matter of winning business or not winning business or simply just putting a good face out there because you want to be in there in the long run, I mean, I'll be frank, that's why I'm here. I'm not going anywhere like I want to. I want to build a real connection with the people I'm helping. And I want to every single one of you watching, to know, like, I'm here to help out. I have a very deep desire to watch you guys succeed. Nothing fulfills me more than getting emails and having Jason coming in saying, what's up, man? And exchanging, you know, messages with. With him and Laz Lazaro. Sorry, I was trying to read the name there, you know, saying that he loves the videos and he's been. I've been the go to since day one. Like, this is what fuels me up. And I know it's the same for you. What fuels you up is making customers happy and getting those reviews and getting testimonials and getting people that you feel like you made a real difference in their life. So consider using this as a bargaining chip, so to speak. Differentiate yourself and say, we can't eat your deductible. What I can do is include this warranty, because if you're selling it for 1600 bucks, and again, I'm using random numbers, it's going to cost you a lot less than that. So instead of giving away that thousand dollars, you might be giving away 300, but to the homeowner, you're giving a tremendous amount of value. So it's a really, really, really powerful tool. So that's all I. For today's video, I want to do a quick recap. And again, I want to thank everyone who's been joining regularly and watching these videos. These lockdown lives are for you. And for that reason, I'd love for you guys drop a comment, tell me the number one thing you think I've missed that you'd love to hear. And it helps me provide content that's super relevant to what you guys want to hear. How can I help you make more sales? How can I Help you overcome objections. What sticking points are you coming into right now? How is it working? Fresh hailstorms. I was exchanging emails with another guy today, says, hey, you know, we just got this fresh hailstorm. What can we do with email? And that stuff's really helpful for me to hear because I can help. Yeah, I can help you guys the best I can. Sorry, I was cheering because Lazaro said you may be the first person in history pronounced that right the first time. Got your back, man. So anyhoo, use this as a chip, stand up, do well by people and use it as a sales tool when you can. If you like this video, give me a thumbs up. Drop me an email. By the way. Adamaroofstrategist.com subscribe to the channel. You get notifications when I go live because there are different times every day. Last thing, if you haven't checked out my stuff, there's links in the description for everything. I back everything that I provide with a hundred percent, no bs, money back guarantee. And the reason I say that is if you have trouble with anything, let me know, email me, I'll take care of you. If it doesn't work, email me. There's either a chance you're using it wrong, which nine times out of 10, it's just, it's human. It's like, oh, I was using this in a different way and I'll coach you through it and I'm happy to help. And if it doesn't, then I'll refund your money, no questions asked. I'm not here to. I'm here for one reason. It's to help you guys succeed. To help you use this platform of roofing sales as a springboard to change your lives. Have fun with it, grow as a person and impact people while you do. Did it for me and I know it can do it for you. Jason says, great video, Adam. Keep up the great work. I watch every day, whether live or on the replay. Awesome. Thanks a ton, Jason. Appreciate you being here. I know it is Monday towards the end of the day and the last thing, if you guys aren't on my email, there's perks to join. One, it's free. Two, you'll get an immediate discount. If you are interested in any of my products, you can check them out there and you'll be on my email list to get some really rad emails. I've got a sequence that'll fire to you with some really personal stuff, helping you make some tweaks to your own process to make more sales and you'll get notifications because I send emails out when I go live. So thank you all for being here. Hope everyone's doing well, being safe. I will see you tomorrow on another lockdown, live.