• Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
  • ENGINEERS
  • RADIANT & HYDRONICS
  • INSIGHTS
  • MEDIA
  • RESOURCES
  • EMAGAZINE
  • SIGN UP!
cart
facebook instagram twitter linkedin youtube
  • CONTRACTORS
  • BATH & KITCHEN PRO
  • BUSINESS MANAGEMENT
  • HIGH EFFICIENCY HOMES
  • TECHNOLOGY
  • WATER TREATMENT
  • PMC COLUMNS
  • PMC COLUMNS
  • Dave Yates: Contractor’s Corner
  • John Siegenthaler: Hydronics Workshop
  • Kenny Chapman: The Blue Collar Coach
  • Matt Michel: Service Plumbing Pros
  • Scott Secor: Heating Perceptions
  • ENGINEERS
  • CONTINUING EDUCATION
  • DECARBONIZATION | ELECTRIFICATION
  • FIRE PROTECTION
  • GEOTHERMAL | SOLAR THERMAL
  • PIPING | PLUMBING | PVF
  • PME COLUMNS
  • PME COLUMNS
  • Christoph Lohr: Strategic Plumbing Insights
  • David Dexter: Plumbing Talking Points
  • James Dipping: Engineer Viewpoints
  • John Seigenthaler: Renewable Heating Design
  • Lowell Manalo: Plumbing Essentials
  • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
  • RADIANT COMFORT REPORT
  • THE GLITCH & THE FIX
  • INSIGHTS
  • CODES
  • GREEN PLUMBING & MECHANICAL
  • PROJECT PROFILES
  • COLUMNS
  • SPONSOR INSIGHTS
  • COLUMNS
  • Codes Corner
  • Natalie Forster: Editorial Opinion
  • Guest Editorial
  • MEDIA
  • PODCASTS
  • VIDEOS
  • WEBINARS
  • RESOURCES
  • INDUSTRY CALENDAR
  • DIRECTORIES
  • EBOOKS
  • PM BOOKSTORE
  • CE CENTER
  • MARKET RESEARCH
  • CLASSIFIEDS
  • EMAGAZINE
  • EMAGAZINE
  • ARCHIVE ISSUES
  • CONTACT
  • ADVERTISE
  • PME EMAGAZINE ARCHIVES
search
cart
facebook instagram twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
    • BATH & KITCHEN PRO
    • BUSINESS MANAGEMENT
    • HIGH EFFICIENCY HOMES
    • TECHNOLOGY
    • WATER TREATMENT
    • PMC COLUMNS
      • Dave Yates: Contractor’s Corner
      • John Siegenthaler: Hydronics Workshop
      • Kenny Chapman: The Blue Collar Coach
      • Matt Michel: Service Plumbing Pros
      • Scott Secor: Heating Perceptions
  • ENGINEERS
    • CONTINUING EDUCATION
    • DECARBONIZATION | ELECTRIFICATION
    • FIRE PROTECTION
    • GEOTHERMAL | SOLAR THERMAL
    • PIPING | PLUMBING | PVF
    • PME COLUMNS
      • Christoph Lohr: Strategic Plumbing Insights
      • David Dexter: Plumbing Talking Points
      • James Dipping: Engineer Viewpoints
      • John Seigenthaler: Renewable Heating Design
      • Lowell Manalo: Plumbing Essentials
      • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
    • RADIANT COMFORT REPORT
    • THE GLITCH & THE FIX
  • INSIGHTS
    • CODES
    • GREEN PLUMBING & MECHANICAL
    • PROJECT PROFILES
    • COLUMNS
      • Codes Corner
      • Natalie Forster: Editorial Opinion
      • Guest Editorial
    • SPONSOR INSIGHTS
  • MEDIA
    • PODCASTS
    • VIDEOS
    • WEBINARS
  • RESOURCES
    • INDUSTRY CALENDAR
    • DIRECTORIES
    • EBOOKS
    • PM BOOKSTORE
    • CE CENTER
    • MARKET RESEARCH
    • CLASSIFIEDS
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • CONTACT
    • ADVERTISE
    • PME EMAGAZINE ARCHIVES
  • SIGN UP!
ColumnsKenny Chapman: The Blue Collar Coach

Frugal doesn't mean cheap

By Kenny Chapman
April 1, 2012
Your customers continue to look for outstanding service and value.



We can hardly pick up a newspaper or watch a news program on television without hearing about how consumers are becoming increasingly frugal in the new economy. There is a certain truth to the fact that people are holding their personal finances more accountable than they have in the past. 

However, the facts can be taken out of context and we can quickly believe certain incorrect ideas about our customers.

I’ve heard a lot of so-called “experts” lately preaching that people are only looking for the cheapest possible options for things they are going to purchase. This is crazy. In fact, in any given demographic, people buy based on price alone less than 20% of the time. In our industry, price is typically not even one of the top 10 deciding factors that people use to determine which company to do business with.

Based on this information, why is it we speak to our customers as though everyone is searching for the lowest possible price without regard for quality or experience? Sure, they’re looking for the lowest possible price, but only as it relates to the value they are seeking in exchange for their hard-earned money.

The issue of price arises early and often in the selling process. This usually happens because it’s one of the only things we’ve given our customers to base their buying decisions on. For instance, if you’re still quoting prices over the phone, stop it now. If you give a potential customer a price without any additional quality and value factors, you’re giving him the ability to compare you only based on price. Don’t you want people to know more about your company, your offerings and your value proposition than price alone?

I know, I know, your customers call and request a price and that’s why you feel obligated to give them a “ballpark” number over the phone, sight unseen. One of the reasons they’re asking you for a price is because they don’t know what else to ask for.

This is why we don’t wait for them to ask; we tell them what we want them to know about us. As an industry, we have represented ourselves to the market as a commodity for a long time. The potential customer simply believes that knowing your hourly rate is enough to decide whether he should allow one of your team members into his home. Is this correct?

Of course this is incorrect, but until the greats like Frank Blau and Ron Smith came along and started educating us regarding how to run profitable, responsible and effective businesses, we didn’t know any better. Those days are gone. Now, we do know better! We cannot allow a downturn in the economy to change the fact that we must continue to price our services at profitable levels.

Differentiating value

be. Too often we misinterpret this reality and start thinking we have to race to the bottom with our pricing and positioning. The fact is, we need to spend more time than ever educating our customers and engaging them in the buying process.

Your technicians and salespeople are hearing all the same information from the “doom and gloom” news, and if you’re not careful they’ll begin to believe that people are only buying the cheapest things. Suddenly, every sale you don’t close will be because “our price was too high.” I simply don’t believe this, and my coaching clients are having success in spite of the fact they are never the lowest bid.

What they are doing is communicating their differentiation and value with the prospect better than the low-bidding competitor. What are the specific things that make you different than your competition? Do your technicians and salespeople effectively communicate these unique qualities to your customers? Let me help you answer that one: No, they usually don’t.

It takes tremendously focused effort on your part, coupled with a specific training program, to help your team members become more comfortable communicating effectively with customers. It’s not a one-size-fits-all approach, and it’s certainly not a “one-and-done” training meeting to get the point across. You must train continuously, practicing and refining key statements over and over again.

How do you want your exceptional value conveyed to your potential customer? Do you have a specific service call process, a step-by-step methodology for accomplishing desired results? As we see our clients becoming increasingly frugal, we must incorporate strategic conversations about the things they want to invest in such as safety, security, peace of mind, warranties, etc.

A large number of contractors go out of business every year. Just because they say they have a guarantee for X amount of years doesn’t mean they can honor it - they might not be around! It’s OK to build some examples like this into your sales presentation. Never bad-mouth the competition … ever. Simply explain to your customers why you’re different, how you can best serve them, why they should do business with you (and nobody else) … then ask for their business.

If you begin to feel like consumers are strictly seeking the lowest price regardless of value, you must challenge this line of thinking immediately! You don’t want to start believing in this fallacy and (even worse) modifying your business accordingly. The new economy certainly demands improved communication with customers. Just remember this doesn’t mean people won’t pay a higher price for a higher level of value.

If you don’t believe that people pay for value, look for examples in the marketplace outside our industry. You are a customer, but not necessarily your own customer. I’m currently writing this column from a high-end coffee shop with a consistently long line of people waiting to purchase a commodity they can get just about anywhere else for 50% to 90% less.

The coffee shop realizes that it’s not selling coffee as a commodity to the “cheap” customer. It’s selling an experience, a brand and a feeling to the “frugal” customer. 

Our customers might be frugal, but they will always spend money on the things that matter most to them, such as outstanding service and value. Focus on providing an exceptional experience for your customer in the new economy, and keep in mind that frugal doesn’t mean cheap.

Links

  • Contact Plumbing & Mechanical
  • Follow PM on Twitter!
KEYWORDS: business coaching customer service

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Chapman

Kenny Chapman, "The Blue Collar Coach," is an award-winning industry coach and trainer, as well as founder of The Blue Collar Success Group, a business-development organization for in-home service contractors. He is the author of In-Home Sales Acceleration and The Six Dimensions of C.H.A.N.G.E. and specializes in helping business operators become true business owners. Visit Kenny's website for free sales and leadership resources, or call 877-968-2244 to see how Kenny and the BCSG team can help you improve your company and better your life.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Worker using the Milwaukee Tool SWITCH PACK drain cleaner

    Pipeline profits: Drain cleaning, pipe inspection create opportunities

    Drain cleaning and inspection services offer lucrative...
    Green Plumbing and Mechanical
    By: Nicole Krawcke
  • Uponor employee, Arturo Moreno

    The reinvestment in American manufacturing and training

    Plumbing & Mechanical Chief Editor Nicole Krawcke and...
    Plumbing News
    By: Nicole Krawcke and Natalie Forster
  • March 2024 Women in Plumbing hero image of woman engineer overlayed by circle of hexagon shapes with numbers from 1 to 10

    Celebrating 10 Influential Women in the Plumbing Industry

    Celebrating Women's History Month and Women in...
    Plumbing News
    By: Nicole Krawcke
Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine
  • Manage My Preferences

NIBCO Press Solutions

NIBCO Press Solutions

Bell & Gossett Illustrates Path to Net-zero at AHR Expo

Bell & Gossett Illustrates Path to Net-zero at AHR Expo

AI can boost efficiency and profitability for plumbing, HVAC contractors

AI can boost efficiency and profitability for plumbing, HVAC contractors

IPEX celebrates grand opening of new Florida distribution center

IPEX celebrates grand opening of new Florida distribution center

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Plumbing & Mechanical audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Plumbing & Mechanical or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • J.J. Keller CMV vehicles on road
    Sponsored byJ. J. Keller & Associates, Inc.

    The dash cam game-changer for small business safety

Popular Stories

The interior of a government building.

President Trump signs executive order promoting skilled trades and apprenticeships

Figure 1 is a sketch of the flow problems of the current plumbing system.

Hydronic heating glitch solved: Why adding a circulator won't fix primary loop flow issue

Underfloor heating installation with drain sewer hole in bathroom close up on water floor heating.

Using hydronics to leverage time-of-use electrical rates

PMCE Home-X April 29 Free Webinar: From Legacy to Leadership: Preparing Your Home Services Business for the Next Generation

Events

November 13, 2024

Future Proofing MEP: Navigating the 2026 High Efficiency Water Heating Standards

Join our deep dive into DOE’s new standards so you can future-proof your MEP practice.

EARN: 0.1 ASPE CEU; 1 AIA LU/HSW; 0.1 IACET CEU*; 1 PDH

View All Submit An Event

Poll

Will business be up or down in 2025?

Do you anticipate business in 2025 to be up or down in comparison to 2024?
View Results Poll Archive

Products

The Water Came To A Stop

The Water Came To A Stop

See More Products

Download the FREE Water Conservation, Quality & Safety eBook: Plumbing Trends Increasing Safe Water Availability

Related Articles

  • Chapman

    Kenny Chapman: When price doesn't matter

    See More
  • Kenny Chapman

    Be the expert at every level

    See More
  • It's not about the product

    See More

Related Products

See More Products
  • The ACCA Job Safety (1).jpg

    The ACCA On-The-Job Safety Handbook (Pack of 5)

  • 51CHeeKvw4L._SX322_BO1,204,203,200_.jpg

    Hydronic Radiant Heating: A Practical Guide for the Nonengineer Installer

See More Products
×

Keep your content unclogged with our newsletters!

Stay in the know on the latest plumbing & piping industry trends.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Supply House Times
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

search
cart
facebook instagram twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • CONTRACTORS
    • BATH & KITCHEN PRO
    • BUSINESS MANAGEMENT
    • HIGH EFFICIENCY HOMES
    • TECHNOLOGY
    • WATER TREATMENT
    • PMC COLUMNS
      • Dave Yates: Contractor’s Corner
      • John Siegenthaler: Hydronics Workshop
      • Kenny Chapman: The Blue Collar Coach
      • Matt Michel: Service Plumbing Pros
      • Scott Secor: Heating Perceptions
  • ENGINEERS
    • CONTINUING EDUCATION
    • DECARBONIZATION | ELECTRIFICATION
    • FIRE PROTECTION
    • GEOTHERMAL | SOLAR THERMAL
    • PIPING | PLUMBING | PVF
    • PME COLUMNS
      • Christoph Lohr: Strategic Plumbing Insights
      • David Dexter: Plumbing Talking Points
      • James Dipping: Engineer Viewpoints
      • John Seigenthaler: Renewable Heating Design
      • Lowell Manalo: Plumbing Essentials
      • Misty Guard: Guard on Compliance
  • RADIANT & HYDRONICS
    • RADIANT COMFORT REPORT
    • THE GLITCH & THE FIX
  • INSIGHTS
    • CODES
    • GREEN PLUMBING & MECHANICAL
    • PROJECT PROFILES
    • COLUMNS
      • Codes Corner
      • Natalie Forster: Editorial Opinion
      • Guest Editorial
    • SPONSOR INSIGHTS
  • MEDIA
    • PODCASTS
    • VIDEOS
    • WEBINARS
  • RESOURCES
    • INDUSTRY CALENDAR
    • DIRECTORIES
    • EBOOKS
    • PM BOOKSTORE
    • CE CENTER
    • MARKET RESEARCH
    • CLASSIFIEDS
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • CONTACT
    • ADVERTISE
    • PME EMAGAZINE ARCHIVES
  • SIGN UP!