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THD Exteriors 04-2014

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  • Success can be learned through experience or teaching.If someone told you which lake to fish, where on the lake to fish, which bait to use and which time to fish – your success would increase. Our goal today is to teach you some proven best practices.
  • A sales strategy is simply following preplanned steps which are designed to maximize your closing percentage. If you do not have a strategy, you could risk the following:Being thrown off course easily or stammeringNot fully covering or missing entirely, the information you want to shareForgetting to engage the customer by asking them if they have questionsAppearing to be less than the industry expert you know you areLosing the sale or lowering your closing percentage
  • Many research studies collectively agree the following factors are the most important for customers when facing a large ticket buying decision. These are rated in order of highest to fourth highest in priority:Confidence in the ManufacturerConfidence in the CompanyConfidence in the Associate Price
  • Confidence in the Manufacturer comes in at #1 in importance. Experts believe there are several contributing factors: In our current economic environment, customers are seeking higher value in their purchases The customer mindset is to “do it right the first time” and avoid repeat purchases Customers need reassurance that Manufacturers have staying power to honor warranties Customers, being more internet savvy, are more aware of current business failures Homeowners feel proud about their quality choice when discussing the product with their friends and family.
  • These are only a few of the product and service attributes of Simonton. Chose the attributes that will be most important to your customers. Do they want to use the brand the “Pro’s” chose or are they more interested in our industry leading warranty? What about our National Service levels? It’s not uncommon for homeowners to use Simonton Windows in their second home or vacation home. Is it important for the homeowner to know we can service their windows in Boston as easily as we can service the windows in their Florida vacation home? Simonton often receives calls from consumers seeking qualified contractors to install the same Simonton windows in their “home away from home”.
  • Confidence in the Company refers to the dealer or service provider on the local level. This is important for the following reasons: Provides reassurancethat others have received good service and establishes credibility The longevity of your company implies you have honest and reliable business practices Your customers can support their local business, while minimizing potential project risk Your customer can have peace of mind knowing you will meet their expectation of superior service and expertise Provides reassurance your company will still be around to provide/finish any future projects or warranty issues
  • This year Simonton Windows celebrates it’s 65th Birthday! We have been around during the peak in the building industry and we are still here after a serious down-turn in our economy and especially the housing market. Our strength allowed us to stay strong and actually continue to grow during the recession.
  • Confidence in the Associate:Have you ever heard that “People buy from people they like?” Here are some points to consider; Listen – It provides reassurance that the customer’s concerns have been truly heard Understand – Their best interest is and should always be your top priority Customers will often resist when they feel pushed. Most deals end at this point. Customers consider an individual’s credibility as much as Manufacturer and Company Building rapport builds the customer’s confidence
  • Confidence in the Associate:Have you ever heard that “People buy from people they like?” Here are some points to consider; Listen – It provides reassurance that the customer’s concerns have been truly heard Understand – Their best interest is and should always be your top priority Customers will often resist when they feel pushed. Most deals end at this point. Customers consider an individual’s credibility as much as Manufacturer and Company Building rapport builds the customer’s confidence
  • To some Sales Associates, it will be a big surprise that price actually comes in fourth place: Starting out, most customers have a budget and prefer to remain close to their budget Most customers will increase their budget if an added value is presented convincingly Value always trumps price – confidence in longevity and performance, vs. cheap Financing options make projects more affordable
  • Option 1 – “Dream Option”The “dream option” contains every upgrade, style, color, option and window the customer showed interest in. Here are some examples of some dream options:Bay/bow windowWood grainHardware upgradeFrench Door vs. Patio DoorEnergy Efficient glass upgradeFull screens if applicableExterior paint color optionsAll windows in home vs. a fewThink of every option the customer liked during your presentation, and include all of them in this “Dream Option”. When presented, you will communicate this option as their “Dream Option” and explain that this was everything they wanted if money was no issue. Do not expect them to purchase this option. However, if you don’t present it they cannot choose it – and some will!
  • The target option should be priced slightly above their budget range, by about 10-20%. Customers have become conditioned to pay more than originally expected for remodeling projects - even for car repairs, so this should not be a surprise to them. This option should be the one which best integrates their needs, wants and is lightly higher than budget. When this option is presented, acknowledge that it is slightly above their price range. Also make clear that you believe it to be the best option for them. Using phrases like “best bang for your dollar” or “most practical” will help them to understand you are trying to best meet their needs, even though it means slightly exceeding their budget.
  • The budget option should be priced at or slightly below their budget range. Giving the customer an option which is at or below their budget range will show the customer that you listened and care about their needs, and this act will most likely be unexpected. This option may sacrifice options, styles and perhaps even number of units sold.When this option is presented, acknowledge that you have done everything you can to accommodate their budget. Remind the customer that they will not be receiving some or any of the options they were excited about. This is a good time to remind the customer that this project should only be done once, so doing it right (and how they want) should weigh into their decision.
  • Giving the customer three options gives the customer more freedom of choice and shows that you respect their needs, as well as their wants.Be sure to present all three options; The ‘dream option’ can increase your average order value significantly. Your ‘target option’ is usually where you will land. The ‘budget option’ shows the customer the respect they expect from a consultant with good character.Your presentation should include a financing option/monthly payment. Consumer’s tend to accept a $200/mo payment more readily than a $9000 price tag.
  • To some Sales Associates, it will be a big surprise that price actually comes in fourth place: Starting out, most customers have a budget and prefer to remain close to their budget Most customers will increase their budget if an added value is presented convincingly Value always trumps price – confidence in longevity and performance, vs. cheap Financing options make projects more affordable
  • To some Sales Associates, it will be a big surprise that price actually comes in fourth place: Starting out, most customers have a budget and prefer to remain close to their budget Most customers will increase their budget if an added value is presented convincingly Value always trumps price – confidence in longevity and performance, vs. cheap Financing options make projects more affordable
  • What’s the difference between features and benefits?Most Sales Associates understand features. When we first learn about the products we sell, we learn about the product’s features.Not every feature is necessarily a benefit.For example; Joe just purchased a brand new SUV with a rear window defogger. The rear window defogger is a feature. It would be a benefit if Joe lives in Minneapolis, but probably not if Joe lives in Phoenix. The distinct difference between features and benefits lies within the owner. In order to translate features into benefits for your customer, you first need to understand the customer’s “hot buttons.” Ask what they don’t like about their current windows. Ask what they are trying to gain through window replacement. Through your investigative work, you will understand which features to highlight and translate into benefits for them.Next, we will cover examples of some basic features and how to understand and communicate their benefit to the homeowner.
  • What’s the difference between features and benefits?Most Sales Associates understand features. When we first learn about the products we sell, we learn about the product’s features.Not every feature is necessarily a benefit.For example; Joe just purchased a brand new SUV with a rear window defogger. The rear window defogger is a feature. It would be a benefit if Joe lives in Minneapolis, but probably not if Joe lives in Phoenix. The distinct difference between features and benefits lies within the owner. In order to translate features into benefits for your customer, you first need to understand the customer’s “hot buttons.” Ask what they don’t like about their current windows. Ask what they are trying to gain through window replacement. Through your investigative work, you will understand which features to highlight and translate into benefits for them.Next, we will cover examples of some basic features and how to understand and communicate their benefit to the homeowner.
  • Some of the training we have presented may make some Sales Professionals uncomfortable. Suggestions such as asking the customer for their budget range are not instinctual for most people. However, they are a proven way of increasing your sales. Here are some suggestions to help become more comfortable:Practice! If you find it uncomfortable to ask the customer for their budget range, practice in front of a mirror or family. It can help you gain the confidence you need Turn the tables to find a way to make requests comfortable. Imagine yourself as the customer. “I know this may sound like an odd request, but in order to help me find the product that best fits your needs and price range, it’s necessary for me to understand your budget range. Would you be comfortable sharing that range with me?”Stop periodically and ask them if they have questions. Try something like, “How am I doing? Am I answering all of your questions? Have I forgotten anything?”
  • In this series, we give you the tools needed to develop and utilize your very own sales strategy, using proven sales strategy techniques.A proven path to successful sales, includes the following: Understanding and meeting the customer’s decision-making criteria Converting features to benefits Completing the cycle Offering three different price and product points
  • VantagePointe is the new co-branding name that Home Depot and Simonton have developed.
  • This is the microsite’s home page.
  • This is a sample of the “options” page. The unit they choose will come to the forefront and the can look at if from all sides.

Transcript

  • 1. 1 Follow me on Twitter @dougdeluca2 Facebook discussion group www.facebook.com/vantagepointediscussion Get today’s presentation online!! www.slideshare.net/slideshow/embed_code/ Look for me on Email me at: doug_deluca@simonton.com
  • 2. 2 Housekeeping • Restroom breaks – go as needed • In the interest of others, phone ringers off please • To minimize paper waste, this presentation is available online Please withhold questions until end of each section if possible
  • 3. Phoenix Branch Home Depot Exteriors Simonton Review April 2014
  • 4. 4 1. Increase Leads 2. Increase AOV 3. Increase Closing %
  • 5. 5 What Where Why When How
  • 6. Sales overview
  • 7. Why do I need a sales strategy? • Keeps you on course easily • Methodically cover important information • Engage the customer, ask questions • Credibility as an Industry Expert • BETTER CLOSING %!!
  • 8. 8 Knowing my customer’s mindset will increase my ability to help the “Buyer” buy
  • 9. Decision making criteria Four customer “Must-Haves” 1. Confidence in the Manufacturer/Product 2. Confidence in the Company/Local Service Provider 3. Confidence in the Associate 4. Price/budget range
  • 10. Why Manufacturer/Product? • Do it right the first time • Financial staying power/warranty • Quality = longevity
  • 11. Financial Stability Fortune Brands Home and Security Division FBHS #1 or #2 product nationally in every category
  • 12. Financial Strength Source: http://in.finance.yahoo.com/news/fortune-brands-home-security-reports-200200044.html
  • 13. Awards and Financial Strength
  • 14. • Average house cost $1459 • Average wages $2500 • A gallon on gas .15 cents • Cost of new car $1120 • Great Alaska Earthquake 7.4 • BBC started • The first Vespa was manufactured • First microwave oven invented • First class postage .03 cents • Born: • George W Bush • Sally Field • Freddie Mercury • Cher • Donald Trump • Sly Stallone • Steven Spielberg Longevity and strength - Simonton
  • 15. Confidence in the manufacturer - summary The Industry’s Best Overall Value Proposition  Industry’s shortest, most dependable lead-times  World class manufacturing  National sales and service levels  Industry-leading warranty  Consumer understanding  Proven track record of service  95% “Perfect” orders delivered on time  The premier trade brand chosen by professional remodelers and builders Consistently delivering the best since 1946
  • 16. Why Company/Service Provider? • Staying power • Longevity = good business • Support your local business
  • 17. 18 * Theirnetworth.com • The WORLD’s largest home improvement retailer • $55B* net worth = financial strength • Nationwide infrastructure
  • 18. Why the Associate? • Salesperson vs. Advocate • Credibility gains confidence Most lost sales are lost here
  • 19. Is your solution the best option for the customer?
  • 20. Why Price/Budget? Value always trumps price Customers usually have an idea of budget range Financing = easier pill to swallow
  • 21. Buying Behavior $$$ $$ $ What % choose B? A B C
  • 22. 1. The most expensive (dream) option 2. Your target option 3. Their budget option Position Yourself $$$ $$ $
  • 23. Option 1 – “Dream Option” “If money was no object” Bay/bow window Wood grain Hardware upgrade French Door vs. Patio Door Energy Efficient glass upgrade If you don’t present it they cannot choose it – and some will!
  • 24. Option 2 – “Target Option” • Meets needs • Exceeds budget 10-30% • “Best bang for the buck” Value always trumps price Done right, this is where most of your customers will end up
  • 25. Option 3 – “Budget Option” At least .01 below budget! • Respect • Effort • Do it right
  • 26. Price Summary • The dream option can increase your average order value significantly. • Your target option is usually where you will land. • The budget option shows the customer the respect they expect from a consultant with good character. • Include a financing option/monthly payment. Presenting three options and monthly financed payments will significantly increase your closing percentage
  • 27. What’s your take? Are these the criteria you need?
  • 28. Speak the customer’s language Benefits Stories Metaphors Resources Personal
  • 29. Features VS. Benefits “Which means to you…” “People don’t want to buy a quarter-inch drill, they want a quarter-inch hole.” ~Theodore Levitt
  • 30. Value Give the customer a reason to spend more money
  • 31. Features VS. Benefits ”A benefit is only a benefit if the customer sees value in it.” ~Doug DeLuca
  • 32. Double Hung ¾” Stainless Steel Constant- Force Coil Balance Allows for a maintenance free, system for sash stability. Multiple Chambers Profile Vinyl profiles are filled with 13 dead air chambers that increase window insulation and aides structural integrality Tilt in/Lift out Sash Allow sash to tilt in for easy cleaning Supercept Spacer System Makes for low conduction rates, moisture-resistance and thermal efficiency Contoured Extruded Lift Rails Allows for easy opening –no matter how big the window. Flush Mounted Tilt Latches For a clean, smooth sash rail. Dual Air Locks For ventilation Cam Lock Unique designed secure window lock Fusion-Welded Frame and Sash Profiles and sashes are fused together to create a weather tight, strong one- piece unit. Accessory Groove For the addition of decorative trim & to aid in installation 3 ¼” Frame Allows to fit most openings ⅞” Insulated Glass Unit Double pane, Double strength glass with Low E and Argon Gas for increased energy performance 6500 Exterior Frame Meeting Rail Makes for a tight seal with our patented Inter- locking/Over-lapping design Extruded Screens For strength and durability
  • 33. Getting comfortable Practice!!! Research shows that it takes 21-28 days until a habit is formed. Try these actions for a month and it will become second nature to you.
  • 34. Review Crucial Points: • Four decision-making criteria – customer buy in • Three price options • Get comfortable Put what you have learned here into practice over the next month and watch your closing percentage and AOV increase!
  • 35. 36 Questions?
  • 36. Website Resources
  • 37. www.simonton.com
  • 38. Easy to find and use condensation brochure found in the Service Solutions tab and then under product care
  • 39. Research and professional third party recommendations for humidity content within the home
  • 40. http://www.jdpower.com/microsites/simonton/
  • 41. http://www.jdpower.com/microsites/simonton/ A great resource for your customer from a third party! This includes information on the rankings, how Simonton was rated and even includes a great video for the customer to watch and learn.
  • 42. http://www.jdpower.com/microsites/simonton/
  • 43. http://www.jdpower.com/microsites/simonton/ Not only will your customers see the power of these rankings, but they will also be able to see how Simonton rated in all categories
  • 44. http://www.jdpower.com/microsites/simonton/ratings.htm
  • 45. 50
  • 46. Understanding and Up-selling glass packages “More than meets the eye”
  • 47. Energy Efficiency Window performance is made up of multiple factors. A few to consider; • U-factor (or R-value) • SHGC • VT • Air Infiltration
  • 48. U-Factor According to Wikipedia, U-factor is described as; “The U-factor (sometimes incorrectly referred to as "U-value"), is the overall heat transfer coefficient that describes how well a building element conducts heat. It measures the rate of heat transfer through a building element over a given area under standardized conditions. The usual standard is at a temperature gradient of 24 °C, at 50% humidity with no wind[6] (a smaller U- value is better at reducing heat transfer).”
  • 49. U-Factor • U-factor is how well the window reduces heat transfer through the materials it is made from. • This can also be summarized by using the term conductivity. • Windows with a smaller U-factor rating conduct less heat.
  • 50. SHGC According to Wikipedia, SHGC is described as; "Solar Heat Gain Coefficient (SHGC)" is used in the United States and most commonly refers to the solar energy transmittance of a window or door as a whole, factoring in the glass, frame material (wood, aluminum, etc.), sash (if present), divided lite bars (if present) and screens (if present).”
  • 51. SHGC • SHGC refers to how much the window allows solar energy transmittance through the window. • SHGC refers to the increase in temperature in a space that results from solar radiation. The amount of solar gain increases with the strength of the sun, and with the ability of any intervening material to transmit or resist the radiation. • Low E is the largest contributing factor to SHGC rating improvements
  • 52. SHGC The NFRC says, What is Solar Heat Gain? The Solar Heat Gain Coefficient, also know as SHGC, measures the rate of heat gain through a product. Therefore, the lower the SHGC, the lower the amount of solar heat gain. In hot climates where air- conditioning bills are a major concern, choosing windows with lower SHGC will reduce the amount of heat that comes in from the outside.
  • 53. Visible Transmittance • Visible Transmittance (VT) measures how much light comes through a product. • VT is expressed as a number between 0 and 1. The higher the VT, the higher the potential for daylighting.
  • 54. Air Infiltration ratings • Beginning in 2014, Energy Star will require published testing to be included on the NFRC sticker • Currently reporting of these test results are optional • Our reporting will state Simonton will state: ≤ .3
  • 55. Air Infiltration ratings What does an air infiltration rate mean? Air leakage is measured by physical testing of a standard sized window. The test window is installed on a large wall. On one side, a vacuum is of 75 pascals (1.57 psf) is applied. This corresponds to approximately a 25 mph wind blowing perpendicularly to the window. Flow meters measure the rate of air leakage. This is divided by the total window area to get a reading (in the U.S) in cfm/ft2 to the nearest tenth (i.e., a test value of 0.17 would be given a rating of 0.2). The best possible rating by the NFRC is 0.1, as they will not round to 0.
  • 56. Air Infiltration ratings Does air infiltration rating affect heat bills? If a manufacturer elects to have its product tested, it cannot have more than 0.3 cfm/ft2 of air leakage. If this maximum is met, the energy loss through air leakage is likely considerably less than that through heat loss (ASHRAE 2005 Fundamentals, P. 31.55). Nonetheless, air infiltration has a major effect on perceived performance of the window. Even at the passing value of 0.3, disturbing drafts may be felt.
  • 57. Air Infiltration ratings How to get the most out of air infiltration – Remember, style is the best way to eliminate air infiltration • PW, CSMT, DH, Slider – Remember that more weather stripping = more resistance – 6500 > 6200 > ClearValue
  • 58. Energy Efficiency Overview The NFRC has created a document to better understand energy efficiency. It can be found at http://www.nfrc.org/docum ents/ReplacementWindows. pdf
  • 59. Performance relativity WINDOWS Material Description U Factor Clear Glass Single Pane 1.22 Double Pane .70 Brick 8” .41 Concrete 12” .55 Door Insulated, Steel .65 Wood, 1” thick .64 http://www.combustionresearch.com/Infra-Spec/infra-spec/uvalue.html
  • 60. 66 Top Home Improvement Lead Sources Canvassing 8 Point Method Direct Mail (Letter, Post Card, Brochure) Installation Invitation TV & Radio Social Media Home Shows, Events & Malls Referrals D30
  • 61. 67 1 2 3 4 5 6 7 8 =Project Address 8 Point System
  • 62. Lead Generation - Referrals 68 Referrals How do I get my customer to tell others?
  • 63. Lead Generation - Referrals 69 Referrals • Most companies utilize referral bonuses • Most do not ask – ask EVERYONE • Best closing rate of all leads • Back end of installation is appropriate • Get comfortable, practice! “I want to let you know how thankful I am that you trusted us with your project. The very same courtesy and service you received is how we treat every customer. Can you think of a couple of people who may want some information on our energy saving windows?”
  • 64. Lead Generation – D30 Best Practices 70 USE http://vantagepointe.simonton.com
  • 65. http://vantagepointe.simonton.com/ This is where your customer can learn all about VantagePoint This is where your customer can schedule an appointment
  • 66. Lead Generation – D30 Best Practices 74 Leverage THD Relationship
  • 67. You hold the keys to a bigger paycheck Leads What will YOU choose to do??
  • 68. 76 Follow me on Twitter @dougdeluca2 Facebook discussion group www.facebook.com/vantagepointediscussion Look for me on Email me at: doug_deluca@simonton.com Get today’s presentation online!! www.slideshare.net/slideshow/embed_code/