Response to The Simplest Way to Save Money

Back in January, I posted an entry, The Simplest Way to Save Money: Ask. In it, I told the story of how my wife and I saved $350 on a new water heater we had installed simply by questioning the quoted price. I also gave other examples of how to save money just by questioning every company you do business with and asking for price breaks and special deals.

Recently, I received the following comment regarding this article:

“Although I appreciate and agree with the point of your post I would add that you should comparison shop also. What appears in the accompanying picture is your garden variety water heater. Walk into any Sears and you will find the top rated (both efficiency and heating) 55gal water heater for around $350 with an install cost of $450 for a total of $800. Somehow I think your plumber saw an opportunity and took it.”

RJT

It just so happens that a Consumer Report site for blogs had linked to this entry and posted an excerpt as well as a picture of a typical water heater in an unfinished basement. Unfortunately, this picture is not mine and does not do justice to my situation.

So I can see why the commenter made that suggestion.

However, this got me thinking, and I’d like to point out some very important things that far too many salespeople seem to forget on a regular basis:

• Not every customer wants the exact same thing. Remember, customers buy for their reasons, not the salesperson’s. Find out what those reasons are first, DON’T ASSUME.
• Before you make assumptions about what a customer has, get all the facts first. It’s very possible a customer might be paying more because they’re getting a lot more.

Let me explain.

I love getting a deal as much as the next person, but I also love speed, ease and convenience as much, if not more. The last thing I feel like doing when it comes to saving just a few hundred dollars is comparison shopping. My time is extremely valuable.

Just one trip to Sears would kill at least two hours, not to mention the fact that Sears is not exactly at the top of my list when it comes to service and quality salespeople. To go to two or three other places would kill an entire day, minimum. If I kill a day shopping for a water heater, I’ve lost money, no matter how much I’ve saved.

Now once I’ve found the water heater, I need to depend on an independent plumber who does installations for Sears! Not something I feel like doing. Most plumbers are independent business people working on their own. While they might be very good at what they do, many are lousy business people who don’t understand good business practices, such as, showing up on time; quality customer service; and backing up your promises.

In fact, I don’t use a plumber per se; I use a plumbing, heating and cooling service. They are a business, a real business that is run like a business. They are full service. They will dispatch workmen to your home very quickly. I have never had a problem getting someone to come over when I want them there. They also have product catalogues with them so you never have to leave the house.

Once we narrowed down our choice of water heaters we looked at their quality ratings on the internet and chose the best one.

Now because the company pays the plumbers and technicians and keeps a cut for themselves, it costs me a little extra, but I don’t mind, because the convenience and peace of mind is worth it to me.

In other words, who is the customer and what do they really want?

Now for point two. This job was done quickly with absolutely the least amount of hassle. I also spent extra on a ten year warranty covering all parts and labor (ease and peace of mind), and this particular water heater (we have 2 in our house) is located in the attic. This means whoever installs it has to first bring it up a long staircase in the entry way, then has to bring it up the pull down staircase that leads to the attic. It is a job for two men, meaning additional costs. I guarantee you Sears wouldn’t have done it for $450.

As a salesperson, before you make claims about your product and service find out exactly what the prospect or client has. Far too often I find when someone tells you. “I can do the same thing cheaper,” what they usually mean is, “I can do the same thing cheaper by taking out a few things that are probably not that important anyhow.” Maybe to them they’re not, but to the customer they’re priceless.

Every customer is different. Find out what they want, and then most importantly give them what they need.