STOP Justifying Your Price: How I Beat “Their Estimate is WAY Cheaper”

You just finished presenting to the homeowner, you reveal the investment options and they say, hey, you know, the other guy can do it $2,000 cheaper. We sometimes get stuck dead in our tracks or stumble overcoming this objection and we end up trying to justify that our price is warranted when the other guy can in fact do it cheaper. If this has happened to you, you're not alone. And you're going to learn how to get through it by watching this live coaching session with Nate in this brand new series called roofing sales Rescue where I provide a one on one free coaching session to a member of the Pitch pro movement, which is my community and mastermind. There's a link in the description for more details. I coach Nate exactly how to handle this situation and how to get ahead of it so you can close more deals. Let's get started. Nate, real good to see you man. How you doing?

Nice to meet you too.

Good, good. So how long you been doing this whole roofing sales thing?

No. About a month and a half.

A month and a half. And what were you doing before that?

Project managing.

What kind of products and services?

Roofing. Roofing. You were project management to sales.

You, you made the move man. Most people don't, don't do it. And you, you did it. I love it. So what I'd love to do today is just talk about fixing our, our sales hole. We all have one. I have one at the moment. I will always have one because we all do. And if you think about being on a sinking ship, if there were three holes, basketball size hole, tennis ball size hole and ping pong ball size hole, which hole do you plug first?

Biggest one.

Biggest one, right. So for many of us like when we're getting started, that hole can be not getting on enough roofs, not getting yeses at the door. It could be not closing deals on the spot. So it's different for everybody. But that, that thing will change as we grow. So I want to ask you like right now in your sales, what do you feel like is your biggest basketball size hole in holding you back from succeeding even more in sales?

Well, it's. I mean our company is not hard to sell once people talk to me about it. But I would say 7 third guy giving the bid and I'm 2, 000 higher than the next person than the last person. You know what I'm saying?

Yeah.

What? How can I add value to myself and to our company and that they will, that, that they'll see as value and you know what I'm saying? That.

Yeah, I sure do. So how often and is this coming up on retail or insurance related projects?

Retail. Retail.

Retail projects. Now when, when that comes up, what does the homeowner tell you? What is the objection that they give?

You'll tell me. Well, they'll tell me, let's think about it. And they'll get, they'll call me and they say we went.

Start to go a different direction because they were cheaper.

That's why. Yeah.

Now before you bring up your estimate, your proposal, are you doing anything in the, in the, what's known as price conditioning or letting the customer know that you'll likely be more expensive and why.

Yeah, I tell them that, I tell them we're likely going to be more expensive than the rest of your bids because our company, we, we stand behind, you know, we're there all, we're there for you all the time. We, you know, I tell them about all our warranties and everything they're getting on the roof, everything from, from the plywood up and you know, and I try to sell our company by our values and, or work, work ethic. And I tell them how my, how John built the company, you know, keeping his word and, and being there. Not, not. I mean we have five re workmanship, warranty, but we don't use it very often. You know what I mean? Or. Yeah, yeah. I try to, you know, you know, when I meet somebody, I try to, I see whatever, you know, Texas longhorn hat or camouflage hat and I bring and I make friends with them first, you know, like talk about football or hunting or whatever it is.

Sure. So one thing, if we put ourselves in the mind of our customer for a minute, when we're selling something, people expect that they're being sold. They're a bit on the defensive, even if they're not really aware of it because they're meeting with two or three, four different people and they're trying to get different prices from everybody. Right. And for most people, the way that their decision making criteria goes is are they reputable, do I like them and is it a fair value? And those are kind of the main, the main three criteria that people have unconsciously that's driving this decision. And whenever we try to justify a higher price, it comes across that way to a homeowner and I'll go somewhere with this, you'll see where this is going to go. So if we're sitting down with someone and saying, hey, you're $2,000 higher and we try to justify it, we'll use things like, well We're a better company. Well, we have a better product. We're a better warranty. We've been in business longer. You know, we're going to do a better job for. And we try to justify it by saying, better, better, better. And what we need to do is actually, so many people focus on, like, with the concept of selling the value, and I approach it a little differently. And what I would recommend for you is before you even come up to present and present meaning talk about the company, talk about the process, go through your proposal. The very first thing that I do is I ask this homeowner this one thing. Hey, now that we've gone through the condition of your roof, would you like to hear how I can help? And again, that's the first. First item is I'm getting up on the roof and doing my inspection. I go through those photos. Would you like to hear how I can help? And they say, yeah, of course. And now what happens is that one liner that I ask, would you like to hear how I can help? When they say yes, they're expecting a pitch, right? They're expecting contract details, proposal, pricing, all that. And right away, after they say yes, which is them basically asking for my help, you'd like to hear I can help? Yes, I would. I immediately say this, Mr. Homeowner, when you go through this process, you can and you should choose anyone that you like and that you trust to do your roof. And here's why. And when we state that it, it's known as disarming. So that homeowner is going to feel like, okay, there's some pressure coming off. All right, there's some pressure coming off because they said I can choose anyone that I like, and I trust he's not going to try to force my hand. But now we use this as an opportunity to explain why. So tell me, I'm going to do this exactly how I would with a homeowner. And I want you to put yourself in the shoes of a homeowner. Hey, so, Nate, listen, as you sh for a roof, my guess is you're doing what most homeowners do. You're going to get three, four, or five estimates based on companies that have a good reputation online. And you're going to come out, meet with them, gauge kind of how they made you feel, and you're going to look at the investment that they gave you, the price that they gave you, and you're going to say, hey, what felt right, Who's a good company, who's a good fit for me but unfortunately, many people, they believe that roofing estimates are apples to apples. And the reality is they're apples to bananas, and sometimes they're as far as apples to french fries. Because. Nate, have you seen those estimates, by the way? If I'm stopping this role play for a minute. Remove, replace roof, $12,000, and that's it.

Yeah, yeah, yeah, I've seen it. I mean, I'm pretty sure that. I mean, you can go, you know, no insurance or liability for sure, probably. You know what I mean?

Yeah.

You know, just go to Home Depot, find a crew somewhere, you know?

Exactly. So here's the thing. When we. Depending on if we're first or last in the home, will. Will dictate how we approach this conversation. And I'll. I'll explain if they're. If I'm first in the house, which I can learn very easily by the minute, I show up, I say, hey, you know, thanks for calling us out. You know, where are you guys at in the process? Oh, you know, you're the first person we called to get estimates. And just like that, I know if I'm selling first in the home. Hey, where are you guys at in the process? We've been collecting estimates. Just pay attention to the details. Now, you know, I do your second, third, fourth, or fifth.

Yeah.

So if we know what I'm going to teach you how to do, this is if you're second, third, fourth, or fifth, first, because it's easier to teach that way. So I say, hey, Mr. Homeowner, I'm glad to hear you're doing your homework. Sounds like you've gotten some other estimates before mine. Now, my mission and purpose today is to understand your roof and your needs. It's to show you your options and help you decide what to do, even if it's not with me. And I want you to know that you can and you should choose anyone that you like and you trust through your roof. And here's why you. Most homeowners believe that roofing estimates are apples to apples. And the reality is they're not. They're apples to bananas or apples or french fries. And we know homeowners, excuse me, as roofers, that most homeowners are gauging that decision based on if they like a company, what the investment looked like, what felt fair, and they think that roofing is a commodity. Shingles come off shingles go on. It's a new roof. But you and I, Nate, we know differently. And Mr. Homeowner, the reason I bring that up is when you got Those other estimates, you know, do the other contractors explain to you what grade of shingles they're using? And at this point, some people might say yes, but often they'll say, oh, they just said they're using blank brand, Certaintee, Gaf, Owens, Corning, whoever it is. Then you'll ask the next question. Great. Did they explain what type of ridge cap they're using in? Bingo. Just like that, you start losing people and they ask the next question. That's okay. The next question is, did they explain what type of underlayment they're using? Do they explain if they're using ice and water shield or w metal in the valleys? And did they say if they're replacing or reusing the drip edge and rake edge? Did they give you a color choice of the drip edge and rake edge? And what about the step to wall and roof to wall flashing? Are they replacing that or reusing it? And ice and water shield on all the eaves, did they explain if they're using that or how many courses? I notice on your front porch we're probably going to need, you know, at least three courses because you got a really big overhang here. We got to go 16 inches inside the heated wall. Okay. And when we start asking these questions and the homeowner can't answer them, now what's happening is what we've done in sales we call create a knowledge gap. Because to them they're like, well, Nate, you're just trying to justify that your estimates 16,000, there's is 14,000. Why is yours $2,000 more? Well, the reason is, Mr. Homeowner, now that I've asked you those questions and those folks, they don't, they don't know. They didn't communicate what's on there. Which means you have absolutely zero accountability and zero legal recourse. Because the truth is, this is a technique used by roofers to dupe homeowners because they prey upon the fact that you think the shingles are coming off, shingles are coming on and you're getting a brand new roof. But it's not like that because they could be reusing 30 or 50 year old building products and they're going to put on a roof that they tell you is going to last 30 years. And we're just not going to stand for that. So when you work with us, we're going to give you line by line of exactly what we're going to do so you can hold us accountable to getting it done. And that's why we will not be the Cheapest contractor out there, but we will be is the one that's going to do everything that they say they're going to do and to stand behind that work. And that's evident by the reviews that you'll. That you'll see with our company. So with your permission, can we break down our estimate together and go through everything and they'll say, yes, and now we can go through it. But the key thing that I wanted to highlight is it's called creating a knowledge gap. When I ask a question that they can't answer, it breaks the narrative in their mind that they think they know what's going on. So the homeowner's thinking, you're just a salesperson, Nate. You're just trying to sell me. You're just trying to justify that your company's worth more. Their quote's 14,000. Yours is 16. That doesn't make any sense to me. A roof is a roof. So the only way that they're going to be receptive to the difference is when we ask questions that they cannot answer. And that's why we go through those details. And when they struggle and they say no, it's okay. Let me just ask you a few more. What type of underlayment are they using? Is it felt? Is it synthetic underlayment? Okay, you don't know. No problem. Do they explain what grade of shingles, what create a ripped ridge cap? What type of pipe jack flashings they're using? Are they using neoprene or lead pipe jacks? And again, all these questions that come up in the homeowner sitting there, glossed over, and what's happening is there's a tremendous amount of distrust to the last person who didn't share those details. Does that make sense?

Yes, that makes perfect sense. Yeah, it makes perfect sense now. I actually sold one tonight. I sold three this week. Well, one was insurance and a couple retails. And I. I did break them, but I didn't break it down at first. I broke it down after I sold it. You know, I took form to sign the contract. I went and this is old lady over elderly lady. And I took it to her. And I was going line by line telling her what every single thing was. But now that I've talked to you, I know that helps me a lot.

Yeah. And you'll notice I used to try to do things at the end also. But what I realized, I don't do it anymore, is if the objection comes up at the end. So hang with me here. Let's say at the Very end of the appointment, the homeowner says, well, Your estimate is $2,000 more. Now I have to try to overcome that. And it comes across as justification I'm justifying $2,000. Whereas if I actually do that in the beginning and I explain how other roofers dupe homeowners, it's a very common technique. And I use the word dupe because I say, this is how roofers dupe homeowners. Homeowners don't want to be duped. So they're like, well, I'm not going to get duped. And I say, hey, it's a very common technique. And that's why they'll write you what we call Lucy Goose estimate. And the reality is, is, and you and I both know that, because you said in the very beginning, it allows that homeowner, excuse me, the roofer, to shop for that product absolutely anywhere they want, and they can get whatever product they want. Anything that's under the shingles, you and I both know they cheap out on, because the homeowner's not going to see it. They're going to reuse absolutely everything they can on the roof and they're going to try to cut as many corners as possible to make up some profit on that job. Because you cannot bill what we bill and do it right.

I can't tell you how many roofs I've seen were the bottom of the pipe jack roofing, the pipe jacks, the two nails and two nails on the last. On the last ridge cap wasn't silicone. You know what I mean? There's all kinds of different stuff that you see valleys going off 3, 4 inches. You know, people just, you know, pretty bad.

Yeah.

Bad work, messy. You'll buy someplace and there's messes in the yard still. You know, we don't leave mess in the yard overnight at all, if we even have an overnight job.

Yeah. So here's those steps that I would recommend at the very beginning of your appointment. You state your mission and purpose and I'll share with you why in a second. I'll loop into that in a moment. My mission with you today and purpose today, Mr. Homeowner, is to understand your roof and your needs. Number two is to show you your options. And number three is to help you make a decision, even if it's not with me. Now, I recognize that you can choose any roofer that you like and that you trust, and here's why. And then we break it down, that apples to apples analogy. Let them know what they're shopping for why homeowners make these decisions, and then say, but did the other. Did the other roofer explain what grade of shingles, what type of ridge cap, what type of pipe jacks, roof to wall flashing, step flashing, chimney flashing, underlayment, valley installation? We ask all these questions, and they're going to gloss over and be like, no, they didn't go through any of that with me. And then now there's a bunch of distrust. We go through our estimate. When we get to the end, they say, hey, well, there's another company that's like, right in line with you guys. And then now at this point, we can say, hey, remember at the very beginning I told you that my mission and purpose was to understand your roof and your needs, to show your options, and most importantly, to help you make a decision, even if it's not with me. So why don't you grab that other estimate, let's go through them side by side, and I'll help break down the differences for you. And when you do that, you're going to be able to outsell the. Not the other person, because chances are their estimate is nowhere near as strong as what you guys are putting together. And that's how you get the homeowner to reveal that paperwork. Go ahead.

Yeah, I've seen some before where they're or they're just written down on a piece of paper. Whereas it is. And that's about it. You know what I mean?

Yeah. There's two powerful questions that you can ask people that say, well, this guy is $3,000 cheaper. They show the estimate. It says, remove and replace roof shingles, felt ice and water, debris removal. Because that's common. Like, whatever. That's the extent of it. Right. Sometimes it's just remove, replace roof, 30 square, whatever the number is. And I ask Homeowners, say, hey, Mr. Homeowner, are you writing. Are you comfortable writing a $15,000 check without having any legal recourse or any accountability? And they're going to be like, I don't think so. And then I'm going to make it real, bring it into their kitchen. Mr. Homeowner, imagine this is a kitchen remodel. Would you be comfortable writing a $15,000 check if you had no idea what kind of countertops or cabinets you'd be getting? And now all of a sudden, I've made it make more sense because a roof is less emotional than the kitchen. And a homeowner are going to say no, Say, well, that's essentially what's going on. If you decide to work with this roofing company because you have no idea what it is they're going to do. And that is how we outsell the other people and why it is so important to bring that stuff up in the very beginning before you present so you don't have to dig yourself out of that hole at the end. Does that make sense?

Yeah, that makes perfect sense.

Awesome, man. You got any questions for me?

No, man. I'm on your pitch pro movement. I can't find my link for some reason, but I'm going to be on it.

I love it. I can't wait to see you in there, Mike. Hey, man.

It was great talking to you.

Yeah, Nate, Thanks a bunch, dude. And thank you to John for bringing it up. Before we wrap up, you got to show me your hand tattoo, dude. You're all in. You're never allowed.

I had the lady point to this and go, jesus on your hand is one of the reasons I'm going with you.

Dude. If you can't win business by saying, Mr. Homeowner, I believe in this company this much.

Yeah, that's right.

It is on my skin for life. Did you. Where did you get that done?

In Orlando at a shop in Orlando.

Gotcha. Was that during they were giving away.

For free in roofcon?

Yeah.

And I couldn't get fine for that one. Yeah, he wants me to get the Owens Corning platinum on this.

That's great, man. Well, Nate, dude, I really appreciate you jumping on, and I hope that you grab something helpful today.

That I did, man. You helped me a lot. I appreciate the help, too. It makes perfect sense. Everything.

Yeah. You are very welcome, man. I hope you continue to crush it, and I'll see you in the pitch pro movement very soon.

All right, man. Thanks.

All right, take care.

Yep.