A (0:00)

Let me ask you something. How many times have you asked a potential client so what's their budget? And you thought you were qualifying a lead, but what if I told you that one word has cost you more money than every bad estimate you've ever written?

B (0:14)

Today's episode is brought to you by Yardbook, the All in one CRM for your lawn care business. And as an exclusive partner of this podcast, you can get started today and begin simplifying your business and maximizing your profits. Sign up now@yardbook.com the link is in the show notes. Time now for Profits with Paycheck, an essential podcast for you in the green industry who are looking to unlock the full potential of your business. Hosted by John Pajac, your certified financial coach, the show features in depth discussions with successful entrepreneurs, thought leaders and industry experts. Providing practical advice and proven strategies on financial planning, operations, marketing and sales. Profits with Paycheck has valuable insights and action steps that you can implement today for creating long term success. Now here's John Pak.

A (1:17)

Welcome to Profits with Pajak, the podcast where you talk about business strategies and financial insights for the green industry. I'm your host, John Pajak and today we're going to be where I'm going to challenge something that most of us have been taught is smart business, but it's actually sabotaging your pricing, your confidence and your profits. And we're talking about the word budget. Let's call it what it is. The word budget is not neutral. You know, it is psychologically loaded. And you know, from the time we were kids, you know, we're all kind of taught that, you know, stay within your budget, don't overspend, cut back, be careful. So when you ask a homeowner what's your budget, you're not gathering information, you don't know it, but you're triggering scarcity thinking and you're literally inviting them to cap the project. You know, you're, they're may, they may undervalue the solution that you're going to bring forward. They're trying to protect their wallet before they even understand what the problem is. And here's the worst part. That number they give you, it's usually made up on the spot. You know, there's no logic, there's no framework, there's no understanding of what things actually cost. But now that number becomes the anchor for the entire conversation. And you know, let's just say, you know, a homeowner says, you know, my budget is $300. Cool. Now you walk the property and you realize man, they need aeration, they need overseeding, they are going to need a full fertilization and weed control package. And that real solution value, it's Gonna cost about 800 to like say $1,200. Okay, but guess what just happened now? You're trying to fit a thousand dollar solution into a $300 box. So what do most guys do? They cut corners, they remove services, they discount, or, you know, they walk away frustrated. And then people say people just don't want to pay. No, you train them not to. You know, you're not selling a price you're seeing, you're selling a result. And if you don't believe that yet, this, what we're talking about is gonna help fix that for you. Now, before we go any further, let me. I could already hear some of you saying, hold on, Pajak, aren't you the budgets break even? As a bottom lines guy, why are you knocking on budgets? Let me be crystal clear. I am not knocking budgets. Budgets are essential. They. In my world, a budget is not a restriction. It is actually permission to spend money. You know, because a properly built budget gives you the confidence to hire, invest in equipment, spend on marketing, and grow your business to where you want it to be to achieve the goals you want to do without guessing. Because you know, the numbers, they support that decision. But, but here's where things go sideways. That's your budget. As a business owner, that is completely different from a customer's budget, which, like I said, is usually a made up, emotional number that they came up with in like three seconds. And when you build your sales process around that number, you know, you end up cutting corners, stripping out services, you're lowering your standards, and you're going to pretty much deliver results you're, you're not going to be proud of. And essentially, like I said before, this is all to satisfy a number that doesn't have any foundation, that doesn't have any proof behind it. So I want you, I don't want you to confuse the two. Budgets build a strong business. But in sales, conversations leading with budget treats, weak incomes, okay? Weak outcomes. It's not. This is where people get tripped up, okay? And again, this is the reason why I'm so passionate about what I teach inside my coaching program. You know, we, we have the budgets baked, break evens and bottom lines workshop, which is its own thing. Because when you go through that and you actually understand your numbers, you stop guessing, you stop underpricing, and you finally gain the confidence to charge what your services have actually require. You to be profitable. And inside Triple B, you know, we break down what it really costs you to operate, your exact break even point for every service, and how to build a bottom line that actually pays you and it helps you achieve your goals in your life. So when you're presenting pricing to a customer, you're not hoping it works. You know it works. And if you want to stop running your business on gut feeling and start running it on real numbers, head over to johnpajak.com and check out budgets, breakevens and bottom lines. There's a link in the show notes that'll take you right there. Back when I was getting my lawn care business off the ground, I was juggling routes, invoices, and customer notes with paper and prayers. It was chaos. Until I found Yardbook. Yardbook gave me the structure. It helped me track chemicals, route efficiently, invoice faster, and most importantly, it helped me grow a profitable business. If you're tired of duct taping your systems Together, go to yardbook.com and sign up for free. And if you're ready to go premium, use promo code paycheck to get your first 30 days on me. All right, let's get back into it, because now that we've separated what a budget really means, let's talk about how to actually structure your sales conversations so you stop fighting on price in the first place. So let's flip this. You don't start with budget. You start with diagnosis and outcome. Think about it like you go to a doctor. They say, you know, do they say, before I look at anything, what's your budget? No, matter of fact, they don't even have a price list. They just go to treat you and then they charge you whatever they want. Right. But let's think more ethically. Okay, let's just say, you know, the doctor basically says, okay, let's figure out what's wrong. And then he goes, you know, here's what it takes to fix it. The same thing with actually, the doctor's a bad, bad example. Let me rephrase that. Let's look at it like a contractor or a mechanic or, you know, a financial advisor. We're going to find out what is wrong, what the problem is, and then we're going to say, okay, here's what it's going to take to fix this. You know, the thing is, with our industry, a lot of times we skip all that. We don't even look to find out what's wrong, and we just skip straight to the price. And instead of saying, what's your budget? I want you to replace it with. What are you hoping to accomplish with your lawn this year? That. Now see, now you're focused on an outcome. What problems are you currently dealing with? That's diagnosing. Okay, have you had this professionally treated before? Right now you're qualifying experience. They might go, oh, you know, my, my nephew, he throws down some stuff he got from the big box store. Well, that doesn't really do the job right. Here's another one. I want you to let me take a look and I'll show you a couple of options. Now, you're positioning yourself as an expert. Now notice what happens. You've removed the price anchor and you've replaced it with authority and clarity. And this is especially important when you're doing project work. Things that are not exactly standard, but this works also for like regular maintenance. Okay? And here's the thing. There's three words that can change everything. And this is the replacement framework that I want you to follow. I know, I know I talk about budgets all the time, but when it comes to your clients, because it is so psychologically loaded, I see how people just roll their eyes when I bring up budgets and things like that. It's important for business owners to do this. But when you bring that up to your, you know, when you're in the art of sales, okay, sales is an art, I want you to replace budget because it just triggers restriction. I want you to replace that with investment because that, that's going to trigger a return. Talk about packages, because that triggers options. You know, you're not selling a $65 application. You're selling a lawn transformation program. You're, you're, you're selling a weed free guarantee, a healthier, thicker, greener lawn. When you say investment, people think, what do I get back? When you say package, people think, oh, what are my options? When you say budget, people think, what's the cheapest way out of this? And unfortunately, that's the stigma around the word budget. I see it as a freeing thing. But most Americans, most everybody in the world, you hear budget and they just cringe. Now, in my own business, I stopped asking about budget and I started presenting complete solutions. When I did that, everything started to change. I had higher close rates, I had less price resistance, I had better clients, and I had higher profit margins. And mainly it was because I wasn't negotiating against an imaginary number anymore. And if you're constantly getting pushback on price, it's not always the market, it's not always the customer. Sometimes it's the frame you set at the beginning of the conversation. And if that frame is built around budget, you're fighting an uphill battle before you even begin. So I feel like you could really hone in and get better results starting today if you do these three things. If you eliminate the word budget from your sales process, just do it completely. Don't ever bring up budget. Don't say the word anymore. Don't. Just don't. Okay? Replace it with outcome based questions. You want to focus on results and not the dollars and present your solutions before the price. Let them understand the value before they see the number. So you know here's the bottom line. You are not in business of fitting services into budgets. You're in the business of delivering solutions that work. And if you want to increase your profit, it starts with changing the conversation. So here's what you should do. Like on your on your next five estimates, don't ask about the budget. Instead diagnose, educate and present the full solution and just see what happens. If you think I'm crazy or it's not gonna work, just do me the favor. Try it with your next five estimates, okay? That way you could tell by yourself. You know you're gonna need some repetitions in order to get it right, but just see what happens within the next five. So I hope this is helpful. I really want to see you succeed and you know, if you can. If this is helpful to you, I would like for you to share this with another business owner. But as always, God Bless. Keep pushing through and we'll catch you on the next one. Thank you once again for listening. If you've enjoyed the show, please leave a review and share it with fellow business owners. Your support means the world to me and helps keep the show going strong. I want to give a special shout out to our friends at Yardbook. Their continued support has been instrumental in bringing this podcast to you week after week. If you haven't checked them out yet, visit yardbook.com and see how they can give you the tools to streamline and manage your lawn care business. Also, don't forget to explore the resources and upcoming events that I've collected just for you in the show Notes. These are curated to help you stay ahead in your your business with the latest tips, tools and networking opportunities. Whether it's a new tool, an insightful article, or an event you don't want to miss, I've got you covered. Until next time, keep pushing through and God bless. Sam.