The Kitchen Sales Coach Issue #10 - Professionalism Determines How Quickly You're Paid
By Robert Foltz, CKD
Prospects will allow you to do as much work as you agree to do for free before they commit to the project. It 's all up to you and your professionalism to earn the right to be paid for your time and talent.
In today's business climate, kitchen and bath designers are tempted to do more up front unpaid work in order to earn the customers respect and land the project. The exact opposite is actually the reality. 90 percent of kitchen and bath shoppers will allow you to do as much free work as you let them. Whether or not you charge a retainer isn't the question. The question is whether you get the deposit check for the job.
I recommend you ask for a 10 percent design deposit that's fully refundable if your project estimate is more than 10 percent higher you stated in writing. This eliminates the hesitancy of the prospect to write the design deposit check.
The Question is, when do you ask for this check? Do I have to prove my value by designing what the prospect wants first and then price it before they can make a decision? No. We all realize that it takes a minimum of 30 to 40 hours to complete a design sequence and finalize the design and pricing details.
I hear this all the time. "They'll buy from me because they like me and we get along well." Prospects aren't going to tell you what you're missing or what concerns them about your firm doing the project, until it's too late. That's why you have to ask.
You should ask, "Are there any concerns or issues you might have with me or my firm completing your project to your satisfaction?" This is a perfectly normal question that you should ask each and every prospect after you've made an initial assessment and established a rapport with the prospect, before you ask for the design deposit.
It's simple, really. Ask for the check after you've given the prospect enough information to prove that your firm is the right one to complete their dream project. However, you should only spend about four hours with each prospect. Otherwise, your sales will be limited because you'll be spending too much time prequalifying.
Let's break it down. Assume your closing ratio is the national average of about 40 percent. That means for every ten people who walk into your showroom, you'll actually sell a project to four of them. Start tracking just how many people for whom you either measure or spend more than 30 minutes discussing a project in your showroom.
If you spend more than four hours, lets say eight hours, and you work 50 hours per week, you're only seeing six clients each week and you should close two, maybe three, of them. Now if you only spend four hours, you'll see twelve prospects and close an average of five of them. If you read this and think to yourself, "Because of the business climate, I don't have twelve prospects coming in the door each week," then use the time to cold call or canvas for more business. You should still only be spending approximately four hours total per prospect. Ask for the design deposit or let the prospect move on. Of course, your follow-up skills are important. Once you receive a design deposit, you should sell 95 percent of those clients. One or two will drop out just because things happen, but for the most part, they're sold-unless you blow it.
I know, I know, "My market is different," you say. "No one else charges a design fee." My answer to that is "So what?" Besides, it's not a fee, it's a deposit based on an estimate given in good faith. One of my mentors told me once that you get paid what you think you deserve. That was powerful to me.
Get paid for your time and talent. If you ask questions and treat prospects fairly, you'll have more clients.
About Robert Foltz, CKD
Robert Foltz, CKD is experienced in all areas of the retail kitchen and bath business. As a manufacturers' representative, his experience and expertise can help improve your business. He also works as a sales trainer, consultant, and personal coach.
With 23 years of experience in every area of the kitchen business, he has personally experienced the most common mistakes all business owners and sales people make. He has used that experience to develop a formula that will help you avoid those common mistakes and to dramatically accelerate your success.
Robert can be reached at and his work can be seen on www.KitchenSalesCoach.com.