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6 Negotiation Tips for New Home Improvement Business Owners

6 Negotiation Tips for New Home Improvement Business Owners

Negotiation is an essential part of any business but especially important in the home improvement industry. Having effective negotiation skills as a home service pro will make all the difference in the success of your business. Although strong negotiation skills take time to develop, HomeStars has advice to get you started. Read through the following six tips before you negotiate your next project.

1. Do Market Research

In order to have competitive pricing, you need to find out how much your competitors are charging for a similar job. What is the average price of a specific job in the town or city you operate in? It would also be valuable to consider the most popular Google search results. Is the service you offer in demand? Consider the different seasons during the negotiation and if they will impact your pricing. Take a look at the HomeStars cost guides to see what homeowners have reported paying to figure out a starting price for your services.

2. Get it Right the First Time

After completing sufficient research, you will be able to price your jobs correctly. Make sure you are getting as many details from the homeowner as possible to ensure your quote is accurate. Ask probing questions during the initial consultation to clarify. Be transparent with the homeowner and explain why you charge the price you do. You will come across as unprofessional if you go back to your client asking for more money when you didn’t quote them properly from the start. If your client changes their mind and decides to add items after negotiations, be sure to update the quote to include the changes.

3. Predetermine Your Bottom Line

With all things in life, in order to succeed, we must first prepare. Know your bottom line before starting the negotiation process. Before you start a conversation with a prospective client, you need to ask yourself: what is the lowest price I am willing to work for? Your time is valuable and you have skills that are in demand – don’t go lower than what you know you deserve. When you ask for more than you are willing to take, you will have wiggle room between your bottom line and what the actual price will be during negotiations.

4. Communicate Effectively

Be respectful while being tactful. Nothing will end a negotiation faster than being rude or having an attitude. People often remember how you make them feel, not just what you did or said. Make sure interactions with you and your business are positive ones.

Focus on the person, not the negotiation. Don’t take it personally – both you and your client are looking out for your own interests. Take the perspective of your client. Can you align their incentives with your own? You want to be compensated properly for your time and skills, your client wants to make sure they aren’t getting ripped off and are getting the best deal possible. You are working together to find a common ground and solution.

5. Be Realistic and Honest

As a home service pro, you will experience many different types of clients with a variety of opinions and reactions. While some may be easy to negotiate with, others will try to haggle the lowest price possible. In addition to the value of your unique skill set, you should also consider the value of your time. Taking the time to shop around for the best price for your client, contact your network for connections, completing cost outlays and paperwork increases your value. Don’t be afraid to speak up and ask for a price that properly reflects all your efforts. Be straightforward with homeowners, they will appreciate your honesty.

6. Establish Yourself As A High-Quality Industry Professional

There is truth in the saying “you get what you pay for” and homeowners know this. Homeowners are willing to pay more for better quality. This is the time to toot your own horn and sell yourself! HomeStars can help you do just that by showcasing your previous clients’ reviews on the platform. With a listing on HomeStars, prospective clients can see what education, qualifications, and years of industry experience you have to prove to homeowners why you deserve top dollar. Compete on quality not price with HomeStars!

HomeStars can help leverage your position in the negotiation process. With an upgraded profile, you can build a strong StarScore and showcase client reviews to help negotiate a great price for your next job. A 2021 HomeStars homeowner survey revealed, 60% of homeowners said they very often read reviews of services before deciding to hire. HomeStars is where high-quality home service pros go to find hire-ready homeowners and start the negotiation process with new clients.

Questions? Contact your dedicated account manager, today, or call 1-800-701-9265.

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