Hi folks, Steve the Hurricane here, and for today’s episode of A Drink with a Hurricane, we are going to talk about having or being shy when it comes to discussing price on an inquiry call.
So in this example here that you saw at the dramatization, this happens all too often. And whether you think it does or not, it does. We secret shop all of our clients and every time they get a caregiver or a staff member or somebody other than the owner when it comes to talking about price, they’re usually very gun shy and they kind of whisper it. When you say it like that, as somebody who represents the company, you have to be confident and comfortable in your prices.
If you’re not comfortable or confident in your prices. I guarantee the person on the other end is not going be comfortable and confident in it either. They’re gonna feel, oh this is way too much, way too much, way too much. They almost feel that way anyway, so as the person answering the phone and in all your offices every single person in your organization has to be trained properly on inquiry management. Inquiry management is essential to the growth of your business. You don’t wanna have just one person or two people, every single person in your business has to be trained on how to properly answer a prospect call. Prospects are the bloodline of your business. It’s like having a body with no blood, that body is dead. You need to have blood in the body, you need to have clients in the business to have a business.
So how you answer the phone is the first step in the sales process. That’s your inquiry management. So if you don’t have a process, get a process. But when you answer the price question, you have to say your prices confidently. As if you giving it away for free. So oh, our prices, they’re only $22 an hour, or $27 an hour, or $18 an hour, or whatever your rate is. It has to be said confidently because you have to believe in your price. Now, I know many business owners are gun shy when it comes to charging what your supposed to. That’s a completely different topic. I understand the mindset of we are here to help people. Of course we’re here to help people, but you have to remember that this is a business. You are not going to be able to help everyone, and it doesn’t mean that you’re only gonna help those who have money, but it does mean that you have to charge a fee for your service. Otherwise your accepting Medicaid, or insurance.
If you’re accepting Medicaid and insurance that’s entirely different, but in a private pay situation, you have to be confident in your price because you are charging a fair price in exchange for what your clients get. Now think about it, what does your client get? Well first off, they’re getting a person, whether it’s an independent contractor from a registry or an employee of yours from your agency. Either way, that’s gonna be 50 to 60% of the price right there. Then, if it’s an agency and your the employer, you’re bonding and insurance takes a good chunk of that, say 10%, right?
Then you have your office staff for any type of business. You’re gonna have schedulers, recruiters, maybe a marketing representative, receptionist, office assistant, maybe an office manager. All of that is gonna be another 10 to 12, maybe 15% of your price right there. Then you have your overhead, your electric, your phone bill, your internet bill, your rent or your mortgage if you own the building, all of that expense. There’s another 10 to 15% of all of the expense that comes into it. So as I’m adding it up, 50 to 60%, 10 to 15%, 10 to 15%, 10 to 15%, that leaves 10 to 15% over for you, if you’re undercharging.
If you’re charging what you should be, then it’s more like 20% left over for you as the owner and that’s what it should be as your the one who took all the risk starting this business. You most likely spent 50, $100,000 to get this business going, or more, and it should be because that’s your return on investment, that’s what you’re trying to do. That’s why you own a business. So you have to be confident in asking your price and giving your price, and I would recommend going through just like I went through with you, all of this goes into your price, do the same thing with your office staff. Help your office staff to realize that the people that are calling aren’t somebody who doesn’t need home care. There’s a need, right? Need exceeds money. Think about it.
When it comes to spending money on things, most of us buy everything that we need and then those of us who have extra money buy a lot of things that we want. But when I want something that I can’t afford, what do I do? I find a way to pay for it because my want almost becomes a need, right? Well the same thing here when it comes to a need. This is an elderly person or a family member of an elderly person who’s like if we don’t get help in place, mom is going to have to move into a nursing home and I don’t want mom to move into a nursing home and if she moves into the nursing home, she’s gonna have to pay privately for it because she has resources. So I don’t want this to happen, she doesn’t want this to happen, so therefore the need is greater than my want to hold onto the money. Here’s the need, here’s my want to hold onto the money. The need is greater, I will spend the money in that case.
So you’re speaking to somebody who’s willing to pay the money for it, just be confident in your prices and say oh, it’s only $22 an hour. That’s it, we won’t know the exact price per week until we come out and meet with you, but it’s $22 an hour. And then when you come out and you meet with Steve, he’ll go over what it’s gonna cost and find something that fits within your budget that will help you fulfill the need and keep your mother out of the nursing home.
Oh okay, fine, that’s great. Done. That’s inquiry management, meeting out there at a consultation, that’s the art of closing. These are all parts of our coaching program, all parts of the boot camp, and all the things that we do. So if you need help with that, pick up the phone, give us a call, ask for a consultation. Come to a boot camp! We’re here to help serve you so that you can “BLOW AWAY THE COMPETITION!”