One of the most important ways to increase profits is to increase sales. There are several ways to accomplish this: sell higher ticket items, increase your markup and fees, do more appointments. All of these will have the desired effect but an even better alternative is to increase your closing ratio, or in other words, closing the sale and getting the check on a larger percentage of appointments. The best way to accomplish this is to become an expert at qualifying the client.
Remember:
Customers lie
Customers shop around
The husband is ALWAYS involved
There is ALWAYS a budget and the budget is NEVER enough
Your mission is not only to create a beautiful, functional room but to conquer there obstacles so that the client gets the room they want and you get the profit you deserve. The key to this is QUALIFYING YOUR CLIENT.
The purpose of qualifying the client is to be sure that both you and the client understand what will take place during the appointment.
You should both end the initial phone call excited to see eachother in person, with "homework" to do in the meantime and
clear, mutually agreed upon expections for the appointment. Once you master this skill, you will close more sales, go on fewer appointments to get the sale and rarely go on an appointment with a client who is not serious or lacks the necessary funds.
YOU SHOULD EXPECT TO SPEND ABOUT 30 MINUTES ON THIS PHONE CALL. Sounds like a lot but it will save you a lot of time, work and gas.
Of course, you will begin your phone call with the usual courtesies: introductions, telling her about yourself and refreshing her memory as to how you came to call on her (referral from a friend, whatever). Once the basic pleasantires are finished, get out your notebook and get to work. It may be easier if you have a template or form that will prompt you so that you ask all the important questions.
1. Lifestyle - you know the drill! Kids, Pets, Jobs, Hobbies
2. Scope of the Job Which rooms will be involved?
Potential color schemes?
What does she have that she plans on keeping?
What does she want to buy new?
What does she love about her room?
What does she hate?
In section 2, you want to determine, if possible, what the source of "pain" is for them in the room. You will need to be the one to cure them of this pain. If the customer is very vague about her plans or needs, it is your job to get her to focus. If she tells you she needs help in every room, find out the top priority and focus on that. You need to see if it is worth your time to go there. Try to determine if she really intends on making changes.
3. How serious are they REALLY? When would you like to begin?
Do you have an event coming up that we need to plan for?
These questions give you a sense of her needs, helps you to create a sense of urgency and tells you if you should schedule her NOW or call back in a few months. For example, if there is a wedding coming up, she needs to get going as soon as possible (although this may impact the budget!). If she does not plan on beginning until after she gets her tax return, you may want to postpone her until spring or structure your appointment differently.
Where do you usually shop for furniture?
When was the last time you purchased furniture?
Do you remember what you spent?
Her answers will tell you a lot about her concept of what furniture will cost. If it has been years since she purchased, you will have to educate her on what she can expect to pay and various levels of quality. For example, you might say "Mary, I can show you sofas at a lot of different price points. Your budget is important to me, so tell me, would you be comfortable spending $6,000 on a sofa? (Explain a bit about the quality) If she says "yes", you know you can show her a Century, Taylor King, Henredon, Duralee or Ferguson Copeland. If she says "no", you can reply "Would a $3,000 be more comfortable?" If this more in line with her finances, you show her Temple, Kings Road, Sam Moore and maybe Robert Allen. If $3,000 is still too high, ask her point blank how much she wants to spend on a sofa. At this point you will need to decide if she is your client or not. Unless you want to take her shopping to discounters or low end retailers and charge hourly, SHE IS NOT YOUR CLIENT. Not everyone can afford a designer and designer furniture.
Have you and your husband discussed a budget for the job? It is very important that you be frank with me about what you want to spend because I will only show you things that will fit or at least be within a reasonable range of your budget. It is a waste of both of our time if I am planning a design that you cannot afford.She may have no idea what this will cost. It is up to you to throw out some approximate numbers, similar to the scenario above. You may need to reassure her that you are willing to work in stages, help her set priorities and come up with a long term plan. Let her know that EVERY client has a limit and that you understand and respect that. You might share with her how you have worked with other clients or with your own home. If her budget is not what it needs to be to purchase custom furniture, let her know in a kind and gracious manner that the lines that you work with are more costly than her budget allows.
If you work on a consultation only basis you can offer this to her, however, your bottom line will be better served if you gracefully end the call and move on to a client who can afford your services, where your time will be spent more profitably. If you are in a slow period, or just starting out, do what will work best for your bottom line, which might mean a simple hourly consultation with no purchases.
There is a time and a place for this, as long as you know it up front. Remember, you are NOT a professional visitor and you are not a "pro-bono" design service. Your time, talent and expertise are valuable.
Have you ever worked with a designer?
Do you like to do your own decorating?
If she has worked with a string of designers - watch out! There is usually a reason, and unless they are all in other cities and the client is new in town, there is a huge red flag. Ask some probing questions. Find out if she is just comparison shopping or what. Her past designers may have fired her!!
If she says she likes to do her own decorating,
ask why she has called you this time. This is a great time to ask if she has been looking around for her new sofa. If she says "yes", find out where, the price she was quoted and discuss the difference between the service the store provides and what you have to offer.
Get it out in the open NOW, not after you have put together three looks for her.If she has shopped, understands custom pricing and realizes that she cannot get the look she wants on her own - you may have a winner!However...If she has found the perfect sofa 60% off at a retailer, or some other amazing deal - do not delude yourself that you can beat the price. Offer to help her after she buys it or charge hourly to take a look at it and then help her finish the room using your usual fee structure. But do not spend hours trying to beat an already rock bottom price.
Once you have concluded that she is really interested in working with a designer and has reasonable ideas about price and budget, it is time to set some expectations.
To what degree does your husband (or other decision maker) need to be involved?In many cases, he only wants to see the final plan and approve the finances,
However, you MUST know when and how to involve him and schedule your appointments accordingly. Sometimes the other decision maker is a child, say a teen daugher whose room is the project. Stress to the client that all interested parties must be there. Remind her that the sooner a decision is reached, and with as few appointments as possible, the lower her consultation fees will be.
Your chances of closing are FAR greater if all the decision makers are there. If you have to come back again, it gives them time to shop, change their mind and for new priorities to arise. You also want to AVOID LEAVING SAMPLES AT THEIR HOUSE. Doing so in an invitation to shop you.
Explain your fee structure and payment schedule. Be sure to build the value of your services. Let her know all the ways that you will help her, make life easier and how happy she will be with the end result. Offer references.Once the money issues are out of the way, it is time to set the expectations for what will be accomplished on the appointments.Always take a brief tour of the entire house, so you can see how they live, get an idea of taste, quality expectations and get a feel for future business. There may be things in other rooms that you can re-purpose in the room that you have been called in to do. Warn her of this so she is not blindsided, but I find it helpful to tell her not to knock herself out cleaning. After all, you want to plan for the way they REALLY live on a day to day basis.
(A word about the house tour: Ask a lot of questions about what you see and take notes. If she is OK with it, take photos. This is the next phase of her "buying in" to the project and to the two of you working and planning together. When you get there, make it count. Every question she answers gets you nearer to closing the sale. Throw out little suggestions that cost you nothing yet build her trust in you. Compliment her on things where appropriate, get her excited about going forward together. Refer back to the things she mentioned over the phone. Create the assumption that you are already her designer).If you are going there to sell a simple product, for example Hunter Douglas products, say: "I will bring several possible things to show you and will be able to price them for you. If we cind just the right thing, we can order then and there. You could have it in just a few weeks. How would that be?"
It is important to set the expectation of a sale.Explain that you will show her some preliminary things based on what you have discussed on the phone, for example bring some photos of possible furniture styles or window treatments that you think might be what she has in mind. Together, you will begin to develop her new look.
Reinforce your fee structure and what payment or contracts will be expected at the first appointment, set the expectation that there will be at least one more appointment and how you need future payments to be made. You can also fax or email copies of contracts to her. Be sensitive and not judgemental, but again, set the expectation that she will be writing a check or entering into a contract if all goes well. Be sure she realizes what you will be doing on her behalf so she understands what she is getting for her money.
If you get this far together, you have an appointment that will yield either a sales commission, some hourly fees or a retainer. If the client is not comfortable with this, ASK HER WHY. "Mary, can you explain to me what is holding you back? I think we can accomplish a lot together. I really want us to be on the same wave length, can you tell me what is making you uncomfortable?"
Continue in this manner until you have a qualified appointment or determine that this is not a good fit. It is fine to give her a day or so to digest what you have told her. This is preferable to wasting several hours on an appointment that goes nowhere. Remember: not every prospect will become a client. It is best to find this out from the comfort of your office and before you go out to their home.
It is a great idea to ask her to email you photos of the room, or rooms, in question. She could also find magazine photos to give you an idea of what she likes or how she envisions the room. This way you can be very well prepared when you walk in the door.
The key to qualifying your clients is frank communication and mutually agreed upon expectations BEFORE you agree to work together. If you keep these steps in mind, iternalize them and make them your own, you will make more money with fewer appointments - and that is a wonderful thing!
