How to make upgrades look like a bargain

Hot Deals Look Like Bargains!

Price is probably this single most common objection your clients and prospects have.

But you’re not selling bricks and sticks. You’re providing and creating value. And, you make every effort to move them away from price as their primary focus.

As a seasoned salesperson, you expertly navigate the conversation back to benefits and value.


But, inevitably, price will bubble back up to the surface. Especially when it’s time to make selections. Of course, the selection process varies greatly from remodeler to remodeler. A design-build firm is going to have a completely different dynamic than a specialty exterior company.

But still, one thing remains. Selections are a great opportunity to upsell. Even if you’ve set an allowance, there may be certain products you’ll want to steer them to because of higher margins. For example, perhaps your crews can install “Product X” faster than Products Y and Z. This would lower labor and increase profit.

Whatever the reason, there may be certain products you would prefer the client choose, and you can use behavioral economic principles to increase the likelihood that your preferences are their choices as well.

Here are four you may not have considered using in your pricing strategy.


“Anchoring is a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the “anchor”) when making decisions.” –

In other words, the first price sets the expectation for what is coming up. And, therefore, if the second price is significantly less, it could actually be perceived as a bargain.

So, how do you sell $2,000 kitchen faucet? Show them an $8,000 faucet first. Suddenly, $2k is a deal!


Okay, so this past fall I had to go to the DMV to renew my license. As I walked in I immediately came to a line of people leading to a reception-type desk. So I stood in line. 15 minutes later, as I got to the 2nd position, I finally saw the small sign on the counter that read, “title transfers.”

Normalization is, at its core, the belief that if everyone does it, it must be the right choice. “A thousand people can’t be wrong.”

Identifying a selection as “our most popular choice” is an example of normalizing. A stronger way is to include social proof, such as client ratings and testimonials.

Normalizing works because, “a thousand people can’t be wrong.”

Talk ROI

Nobody likes to spend money frivolously. So showing a selection as an investment is a good way to convince clients that it’s the sensible choice.

So, for example, let’s say you find a real estate study that suggests homes with granite countertops sold an average of 87 days faster than those without. That’s a strong argument for the added expense.

Remodeling Magazine’s annual Cost vs. Value report is an example of a good resource for this technique.

Contextual Pricing

When people buy things, they make their decisions based on relative information, not absolute.

Put another way, let’s say someone wants to find the best value choice for their money. Typically, they have no idea what is a good value unless you put it into context for them.

You need to give them a selection of choices that they can compare to one another. You’ve seen this many times before: it’s the Good, Better, Best price table.

But here’s the thing about contextual pricing: You must place the selection you prefer to sell in the middle, or “better” position.


Because that’s the choice most people will make.

You see, clients will typically avoid the “Good” like the plague because no one wants to choose the lowest quality item (the perception of this “lowest-tier” item).

However, “Best” is generally avoided because it is perceived as the “luxury-top-tier.” They will feel they are being extravagant and overspending.

And so this leaves the comfortable, sensible, middle-tier. The “Better” option. It’s like Baby Bear’s porridge. It’s juuuuust right.

Please note that you must use three tiers for this to work right. Two options will land everyone in the lower level-one tier, and 4+ tiers lack the “sensible middle.”

What about you?

Do you use any of these techniques? There are a number of other behavioral economic principles that can influence your clients selections. Do you use any of the ones I didn’t mention here? Please share your stories in the comments below!

Image courtesy of Stuart Miles at

Moving Out of the Home Office — 6 Signs That it’s Time to Take the Leap

Are you frustrated with the limitations of a home office? Have you considered moving to a commercial space?

If you’re like me, you don’t want to spend money if you don’t have to. But if staying in your home office is stunting your business’s growth, the benefits of making that additional investment will likely outweigh the costs.

In today’s episode of PowerTips TV, I’ll share six signs that you should start seriously thinking about this next big stage in your company’s life.

What about you?

I want to know about your experience in either moving from your home office or deciding to stay put. Please share with me in the comments below!

Is your company the real deal when it comes to customer service?

Google home improvement contractors in your area. You’ll notice many who list customer service as one of their top attributes. Within a few clicks, reviews from their clients tell a completely different story. Talk about a huge red flag to homeowners. Remodeling clients are looking for a contractor who doesn’t just talk the talk, but walks the walk when it comes to delivering an outstanding experience. Take a moment and ask yourself, is your company the real deal when it comes to customer service?

Client Perception is Everything

Author, Kate Zabriskie summed up the importance of understanding where you stand with clients best when she said, “the customer’s perception is your reality.” In order to become a remodeler who means business about quality service, you have to accurately measure how you’re perceived in the eyes of your clients. So many remodeling business owners hesitate to deep dive into what’s on the minds of their clients. Nobody enjoys having their flaws pointed out, but when it comes to your business it’s absolutely critical to know how your clients feel about your performance, good, bad, or ugly.

Establish a process where your clients can comfortably and honestly express their thoughts about your work. Surveying is an easy and effective way to accomplish that. Once you begin gathering feedback you can begin to uncover the areas you and your team are excelling in, and the areas that might need a remodel.

Improving Service as a Team

The worst thing you can do with customer feedback is nothing at all. Once you begin to learn what your clients think about your performance, share that information with the rest of your company. Remodelers who are the most successful at building a strong customer service culture review every survey response with their team. Together they recognize excellence, set goals, and find solutions for weaknesses. They view feedback from customers as an opportunity to learn and grow. These remodelers know that the effort they put into client experiences behind the scenes translates into better relationships with clients.

Delivering on your promise of customer service is the single most important thing you can do to establish trust and credibility in the eyes of homeowners. They don’t expect perfection, they do expect that you’re a remodeler of your word who strives for customer satisfaction.

Image courtesy of cooldesign /