Updated: May 14
This text is from our consulting firm's latest 321 Biz Development episode found on 18 podcast platforms like Spotify, iTunes, Pandora and iHeart Radio. There is too much content to write for this article, so readers are referred to the podcast for the complete story. 321 Biz Dev supports supporting attorneys, CPAs, corporate dental franchisers, independent dentists, home health providers, homebuilders, medical groups, plastic surgeons, insurance brokers, real estate brokers, restaurants, tattoo shops, boutique shops, hair stylists, HVAC companies, and plumbers.
Yes, this is the worst thing a prospect can do to a small business owner when the prospect really needs the product or service.
I am talking about low-balling small business owner proposals. And I am emphasizing proposals when prospects really need the products or services.
To be clear, I am not talking about installing an underground pool. Nor am I discussing replacing a HVAC system.
A good example is hiring a good attorney for a defendant's or plaintiff's sticky legal situation. Another good example is hiring a CPA as a consultant to look at the numbers to improve business performance.
Low-balling proposals has been a tactic buyers use when they want to get the lowest prices for their hard earned money. But low-balling a proposal is a major mistake when the product or service is desperately needed or the consumer needs an outcome in their favor.
Low-balling offers is common and expected with real estate transactions and buying cars. In the current real estate market in some states like California, a buyer will not get the house with a low-ball offer. In contrast, a car buyer has some negotiating power when trying to get a lower price on a car.
Let's next look at how the business owner handles a low-ball proposal when his or her product or service is desperately needed by a consumer.
When a product or service is desperately needed and the consumer low-balls an offer, several outcomes are possible:
The consumer will automatically receive less service from the business owner.
The outcome is less certain than if the proposal was not low-balled.
The small business owner will not prioritize the work.
In closing, small business owners offering critical products and services generate proposals they believe will compensate them for their talent, skill and expertise.
It's okay for consumers to shop around for the best prices, but I would not recommend low-balling small business owners especially if the product or service is desperately needed.
If this episode/article provoked some deep thought about improving your sales performance, please do not hesitate to contact me, Rick Nappier, at 726-999-0999.
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We hope your enjoyed today’s post and linked podcast episode. Please check out the 321 Biz Development podcast for a lot more content on this subject matter.