WEBVTT NOTE This file was generated by Descript 00:00:00.270 --> 00:00:05.520 I'm about to show you the horrifying reality about competing on price, and 00:00:05.525 --> 00:00:10.260 my guess is that after you watch this video, you will never, ever, ever 00:00:10.260 --> 00:00:12.690 want to drop your prices ever again. 00:00:13.290 --> 00:00:16.320 Now, this topic keeps coming up because there's no secret that there's always 00:00:16.320 --> 00:00:18.630 someone who is willing to do it cheaper. 00:00:18.690 --> 00:00:22.080 And in fact, I was recently down in San Marcos, Texas training a team of Owens 00:00:22.080 --> 00:00:25.920 Corning contractors for an invite only event down there, and this kept coming up. 00:00:25.920 --> 00:00:26.160 Adam. 00:00:26.160 --> 00:00:26.790 We have cheap labor. 00:00:26.790 --> 00:00:28.210 There's always someone willing to do it. 00:00:28.845 --> 00:00:30.075 And we're really struggling here. 00:00:30.075 --> 00:00:33.765 Now, I have an entire training on how to sell with the highest price, 00:00:33.945 --> 00:00:35.415 even beating the competition. 00:00:35.685 --> 00:00:37.665 But this isn't about that. 00:00:37.665 --> 00:00:43.305 What this video is really designed to do is to plant a seed in your mind, to change 00:00:43.305 --> 00:00:47.325 the way you think about sales forever, so you can run all of your personal 00:00:47.325 --> 00:00:51.495 sales decisions and or your company sales decisions by running them from the. 00:00:52.220 --> 00:00:53.540 Now I'm horrible at math. 00:00:53.540 --> 00:00:55.640 I've double checked this math, but I encourage you to pay very close 00:00:55.640 --> 00:00:57.200 attention and double check my math. 00:00:57.440 --> 00:01:00.830 Most importantly, I want you to follow along and do this math for 00:01:00.830 --> 00:01:04.340 the numbers that are relevant to your personal sales or your business. 00:01:04.519 --> 00:01:06.290 So let's get started. 00:01:06.380 --> 00:01:09.800 Hey, before we do, just wanna say quick welcome or welcome back. 00:01:09.800 --> 00:01:11.450 My name is Adam Zeman, the roof strategist. 00:01:11.570 --> 00:01:12.890 Super excited to have you here. 00:01:13.280 --> 00:01:14.330 Everything I do here on my. 00:01:14.990 --> 00:01:17.330 It's designed to help you and your team smash your income goal and 00:01:17.330 --> 00:01:21.530 give every customer an absolutely amazing experience, but an amazing 00:01:21.530 --> 00:01:23.210 experience needs to be funded. 00:01:23.420 --> 00:01:27.590 We can't do it if we're broke, so we need to learn how to sell with a higher value, 00:01:27.595 --> 00:01:29.750 and that's gonna start with our mindset. 00:01:30.050 --> 00:01:31.730 So let's jump right in, shall we? 00:01:32.060 --> 00:01:34.009 The horrifying truth about competing on price. 00:01:34.009 --> 00:01:36.830 My, my goal is that after you do this math with. 00:01:37.290 --> 00:01:40.230 You're never going to want to drop your prices ever again. 00:01:40.710 --> 00:01:42.000 Let's start looking at a sales rep. 00:01:42.000 --> 00:01:45.270 I'm gonna do an average of a hundred roofs that are sold for this salesperson. 00:01:45.540 --> 00:01:49.230 By the way, this is a number based on a recent poll I put up on Instagram. 00:01:49.230 --> 00:01:51.150 You can follow along at roof strategist. 00:01:51.150 --> 00:01:54.450 I know the at roof strategist and I said, Hey, how many roofs should a. 00:01:54.485 --> 00:01:57.935 Average salesperson sell like someone who's just like a good fit for the 00:01:57.935 --> 00:02:01.295 industry and they're working full time, and that range was 50 to a hundred. 00:02:01.325 --> 00:02:03.605 I know that there's many that can do more depending on the 00:02:03.605 --> 00:02:04.655 structure of the business. 00:02:04.715 --> 00:02:07.445 So reflect your number, but follow along on my math. 00:02:07.775 --> 00:02:12.695 Now, generally speaking, when we start competing on price, we're doing price 00:02:12.695 --> 00:02:16.835 drops on the retail side or we're giving things away, or free upgrades, and we 00:02:16.835 --> 00:02:20.885 end up forfeiting our commission, and that range is gonna be about 200 to 00:02:20.885 --> 00:02:23.345 $500 when we start giving things away. 00:02:25.035 --> 00:02:29.295 What many people and salespeople think and believe me as a new salesperson, I 00:02:29.295 --> 00:02:33.555 fell victim to this very delusional way of thinking, which was, Hey, well I'm giving 00:02:33.555 --> 00:02:39.315 up two to $500, but it's in exchange for earning a thousand or 2000 or $3,000. 00:02:39.320 --> 00:02:41.565 So if I have to give up a little, it's okay. 00:02:41.840 --> 00:02:45.079 And again, you might be sitting there thinking, Well, yeah, that makes sense. 00:02:45.079 --> 00:02:48.230 Like if someone said, Here's two grand, or here's 1800, like, do I care? 00:02:48.230 --> 00:02:50.780 Like i'd, I'd rather two, but I'll settle for 18 because 00:02:50.785 --> 00:02:51.680 it's still better than nothing. 00:02:52.040 --> 00:02:54.769 But what we don't think about is the compound effects of what that 00:02:54.769 --> 00:02:57.950 actually means on our personal income. 00:02:58.190 --> 00:03:00.410 Which means if we sell a hundred roofs and we're giving up two to 00:03:00.410 --> 00:03:04.850 $500, we are forfeiting $20,000. 00:03:05.160 --> 00:03:11.820 To $50,000 of income every single year, we are literally giving away. 00:03:12.179 --> 00:03:15.480 So imagine this, and I'm gonna, I'm gonna be a little cheeky and playful 00:03:15.480 --> 00:03:18.809 cuz I needed a gentle nudge when I was, had this thought process. 00:03:19.230 --> 00:03:23.279 And imagine going home to your significant other tonight and saying, 00:03:23.279 --> 00:03:29.429 Honey, are you cool if I give away 20 to $50,000 of our income to make 00:03:29.429 --> 00:03:31.019 easier sales and bring some money? 00:03:31.799 --> 00:03:34.829 No, your significant other or spouse is gonna turn to you. 00:03:35.010 --> 00:03:38.010 Reach out and grab your shoulders and give you a good solid shake and say, 00:03:38.010 --> 00:03:42.810 Honey, just learn to sell the value because you won't need to sell as much. 00:03:42.959 --> 00:03:44.489 Why are you giving away our income? 00:03:44.494 --> 00:03:47.130 That's feeding our kids, setting up our future, buying our dream home, 00:03:47.160 --> 00:03:48.870 and setting us up to retire early? 00:03:49.109 --> 00:03:50.160 What are you thinking? 00:03:50.519 --> 00:03:56.279 So to make up for this 20 to thousand dollars, 20 to $50,000 deficit, 00:03:56.459 --> 00:03:58.140 if your average commission is two. 00:04:00.030 --> 00:04:04.260 . That means that you have to sell an extra 10 to 25 roofs 00:04:04.260 --> 00:04:08.460 per year, which is a 10 to 25%. 00:04:09.480 --> 00:04:13.140 Increase in your sales volume just to make it where you should have been. 00:04:13.590 --> 00:04:14.250 It is crazy. 00:04:14.250 --> 00:04:18.660 Now, my guess, and from everything I've seen, if you have to sell 10 to 25% 00:04:18.665 --> 00:04:24.090 more roofs, okay, Which my calculation is that if you were to sell these 00:04:24.090 --> 00:04:28.650 roofs without having to compete on price, your close weight may reduce, 00:04:28.800 --> 00:04:34.410 but it's not gonna reduce 10 to 25%, excuse me, in my experience, which. 00:04:34.965 --> 00:04:36.135 Just sell at a higher price. 00:04:36.135 --> 00:04:39.195 Even if you bring in less sales, you're more profitable and you'll 00:04:39.195 --> 00:04:42.795 make this money as opposed to having to go chase 10 to 25% growth to just 00:04:42.855 --> 00:04:44.625 net out where you should have been. 00:04:45.075 --> 00:04:48.555 Now, this picture gets way more horrifying when we start looking 00:04:48.555 --> 00:04:52.005 at a company level, so owners and managers pay very close attention. 00:04:52.935 --> 00:04:55.995 For this example, I'm gonna use a company that's selling 300 roofs a year. 00:04:58.425 --> 00:04:58.695 All right? 00:04:58.695 --> 00:04:59.625 300 roofs. 00:05:00.165 --> 00:05:02.985 That's about a $6 million year company with a $20,000 average on. 00:05:04.050 --> 00:05:08.100 So your mileage may vary if you are competing on price. 00:05:08.280 --> 00:05:11.610 Generally speaking, when we're talking full roof systems, we're not competing 00:05:11.610 --> 00:05:14.120 on hundreds, we are talking thousands. 00:05:14.120 --> 00:05:16.290 So for this example, we are gonna say that you're giving 00:05:16.290 --> 00:05:19.050 up $2,000 on every single roof. 00:05:19.350 --> 00:05:22.350 Now, you might be doing this math really quickly and having a heart attack 00:05:22.355 --> 00:05:24.300 just the way I would if I saw this. 00:05:24.570 --> 00:05:29.580 And I would say, Holy smokes, by dropping my price by $2,000 throughout 00:05:29.580 --> 00:05:32.460 my year of selling just 300 roofs, I am. 00:05:33.310 --> 00:05:40.539 $600,000 of pure gravy profit on the table. 00:05:40.810 --> 00:05:44.380 Out of my own pocket from the company, I am giving away 00:05:44.380 --> 00:05:47.230 over one half million dollars. 00:05:48.240 --> 00:05:49.090 Pardon me. 00:05:49.349 --> 00:05:52.919 This gets really spooky because that's a boatload of money and it 00:05:52.919 --> 00:05:56.490 gets even spookier when we look at the cost to the, to the company and 00:05:56.490 --> 00:05:57.750 what we need to do to make up for it. 00:05:57.990 --> 00:06:01.380 If we're looking at an average company profit, and again, this is a range 00:06:01.530 --> 00:06:04.710 adjust to your market, what you're selling, storm retail, Northern 00:06:04.710 --> 00:06:09.450 southern market, price per square, if I'm talking average roof is $4,000 of. 00:06:10.469 --> 00:06:18.239 That means that we must sell 150 additional roofs to get that back. 00:06:18.510 --> 00:06:24.840 So let me remind you, you'd have to sell 150 more roofs, which means 150 more homes 00:06:24.989 --> 00:06:28.080 that you have liability on that something can go wrong to that you're married to 00:06:28.080 --> 00:06:30.659 through the life of the labor warranty. 00:06:31.380 --> 00:06:35.910 And you have to have your sales force and cash flow tied up to sell 50% 00:06:35.970 --> 00:06:38.520 more roofs to get to the same amount. 00:06:38.520 --> 00:06:44.400 So if you have to sell 50% more, my guess is if you're coming in at $2,000 higher, 00:06:44.910 --> 00:06:48.210 on average, let's say, cuz you're not, you decided I don't want to compete on price. 00:06:48.450 --> 00:06:50.100 Is your close rate gonna go down by half? 00:06:50.910 --> 00:06:51.360 No. 00:06:51.570 --> 00:06:55.260 So even if you sold less roofs with a higher amount, you 00:06:55.260 --> 00:06:57.990 will end up making more money. 00:06:58.530 --> 00:07:01.170 This race to the bottom is ludicrous. 00:07:01.260 --> 00:07:05.880 We forfeit money, we increase our liability. 00:07:06.750 --> 00:07:07.140 Okay? 00:07:07.320 --> 00:07:09.630 We destroy our cash flow. 00:07:10.170 --> 00:07:13.200 We steal from those we love and yeah, that's crazy. 00:07:13.200 --> 00:07:13.750 I know. 00:07:15.255 --> 00:07:17.955 from who we love. 00:07:17.955 --> 00:07:20.145 And you might be saying, Adam, that's really dramatic, but if 00:07:20.145 --> 00:07:24.045 I took 20 to $50,000 outta my family, I'm stealing from them. 00:07:24.285 --> 00:07:28.965 I know it's a different way to think about this and we are not financially healthy 00:07:29.235 --> 00:07:33.495 if we end up, My handwriting is improving. 00:07:33.555 --> 00:07:34.245 That's a joke. 00:07:35.295 --> 00:07:36.165 not financially healthy. 00:07:37.035 --> 00:07:39.465 , if we ended up bringing this extra 600, look at what that 00:07:39.465 --> 00:07:40.575 would do for your growth. 00:07:40.575 --> 00:07:43.395 If you ended up bringing 20 to $50,000 more per year, look what 00:07:43.395 --> 00:07:44.625 that will do to your family. 00:07:44.925 --> 00:07:48.195 So what I want you to do now is to do the math based on the number of 00:07:48.195 --> 00:07:51.585 roofs you sold, the average amount you've given up on a project. 00:07:51.735 --> 00:07:55.335 Figure out that difference and how much, how many more roofs you need to sell. 00:07:55.455 --> 00:07:57.645 And then what I'd love for you to do is drop a comment and tell me, 00:07:57.645 --> 00:07:58.815 are you ever dropping your price? 00:07:59.535 --> 00:08:03.585 No, because smart salespeople who just learn to sell at the higher price, even if 00:08:03.585 --> 00:08:07.475 their close rate isn't as high, end up in a better position with happier customers 00:08:07.480 --> 00:08:11.325 in an amazing experience because you can fund the growth and there you have it. 00:08:11.445 --> 00:08:14.415 This is the horrifying truth of what it means for you and your 00:08:14.415 --> 00:08:16.365 company to race to the bottom. 00:08:16.575 --> 00:08:17.775 Hey, thanks for joining me. 00:08:17.775 --> 00:08:20.595 In today's video, if you want me to do a follow up video on selling with 00:08:20.595 --> 00:08:24.345 the highest estimate, go ahead and uh, drop a comment below if there's enough. 00:08:24.880 --> 00:08:27.100 We'll consider putting that one in the video queue. 00:08:27.280 --> 00:08:28.510 Super appreciate you being here. 00:08:28.659 --> 00:08:31.480 I do have one thing to close with, um, just cuz our time 00:08:31.480 --> 00:08:32.260 here is about to wrap up. 00:08:32.260 --> 00:08:34.520 Doesn't mean your and my time has. 00:08:35.159 --> 00:08:36.210 And I have some exciting news. 00:08:36.360 --> 00:08:39.750 We have a brand new free training center and in our free training center, 00:08:39.750 --> 00:08:42.270 we moved over our pitch, like a pro roofing sales training video library, 00:08:42.270 --> 00:08:46.260 which you can get a hundred percent free@theroofstrategist.com or texting 00:08:46.265 --> 00:08:51.720 the word free to 3 0 3 2 2 2 71 33. 00:08:51.720 --> 00:08:53.700 And inside you're gonna get the, the pitch, like a pro roofing 00:08:53.700 --> 00:08:54.450 sales training video library. 00:08:54.770 --> 00:08:57.170 The Roof Claims Crash course as well is in here. 00:08:57.320 --> 00:09:01.190 We have my recommended reading list of all the, uh, books that I 00:09:01.190 --> 00:09:02.330 think are actually worth reading. 00:09:02.330 --> 00:09:04.790 It's the top 82 organized by category. 00:09:04.790 --> 00:09:07.430 Here we have the, the replay for my webinar and the 10 closing 00:09:07.430 --> 00:09:08.690 techniques for every situation. 00:09:08.840 --> 00:09:11.240 You can click right there, so I'd love to get this in your hands. 00:09:11.390 --> 00:09:14.420 You can click right over here and pop in and get a free copy of the pitch, like a 00:09:14.420 --> 00:09:15.860 pro roofing sales training video library. 00:09:16.010 --> 00:09:18.290 By the way, if you've been in there before, we're getting that all updated. 00:09:18.290 --> 00:09:20.570 You should be getting an email with your login link to get into the free 00:09:20.570 --> 00:09:23.450 training center very shortly, and if you want to hang with me here on. 00:09:23.930 --> 00:09:26.729 Pop into this video and it will see you on the next one.