flexiblefullpage -
Currently Reading

Mark Richardson: The Power of Three

Advertisement
billboard -
Leadership

Mark Richardson: The Power of Three

By mastering the techniques of the power of three, builders and sales professionals can save time and boost their close rate.


By Mark Richardson, Co-Chairman, Case Design Remodeling and Case Institute of Remodeling March 23, 2012
Mark Richardson: The Power of Three
This article first appeared in the CB March 2012 issue of Custom Builder.

The pace of life today (both professionally and personally) and the abundance of choices have forced us to look more at the behavioral aspect of buying. In the past, many decision/sales processes were designed around features and benefits. It was more about the value exceeding the price. While these formulas and techniques are still valid, they are not enough to get your clients off the dime.

Today more than ever, your greatest competition is not other businesses doing what you do, it is your client — your client’s fear of making a mistake; your client’s ignorance on the subject matter; your client’s overwhelming amount of choices. All of these issues have nothing to do with your product or their interest and desire in your service. They have to do with the client buying process.

Many years ago, I began studying “the power of three.” The premise is that by using and mastering the techniques of the power of three, you not only address the sales or buying process, but you also save time and see a higher close rate.

This concept wraps around the dynamic of choices. If your client is presented one choice (assume the very best one), you risk having them make a decision to proceed with you based not on you, but on the choice that you presented. You and your company could be a perfect fit, but by only showing one choice they may find a minor element is not hitting the mark and you could lose the business.

If you present two options, then human nature (if it is an important decision) is to ask, “This is great, but is there another choice?” This not only risks the prospect wanting to see what another company has come up with, but it is also a waste of time for you to research more alternatives. There is a natural doubt that needs to escape.

If you present them with four or more alternatives, you will paralyze them. Now they are overwhelmed. Now they have to think about it given the complexity of the decision. Generally you are not losing the business to someone else; you are stalling the project completely. Your client now wants to move on to another priority in their lives.

The answer to this dilemma is in the power of three. Three is a magical number in many ways, and by providing prospects with three choices, you will see several positive things. First, they feel like they properly considered the options. Second, they are not overwhelmed with too many choices. Third, they respect your skills as a professional. Fourth, you will save time by not going back and forth. And finally, your close rate will increase, resulting in increased sales.

The power of three is a technique that is relevant with many other uses, too. You can frame the client decision with three option levels (i.e., good, better, best). It can be used to describe three types of companies doing what you do to help a prospect understand who they should work with. And when setting goals or priorities, we generally can handle three pretty well.

By using the power of three in most things that involve choices, you have a formula that you can master. Success is all about mastering. Remember, this is about addressing the prospects’ buying process, not necessarily finding three prefect choices. There may be only one or two good ones.

The bottom line is that we all want to feel good about our decisions and choices as much as what we actually decided on. The power of three gives you a technique and a process to make it more predictable.

Mark Richardson is co-chairman of Case Design/ Remodeling Inc. and the Case Institute of Remodeling. He is a member of the NAHB Remodeling Hall of Fame and a Fellow at Harvard University’s Joint Center for Housing Studies. Richardson is the author of the best-selling book, “How Fit is Your Business?,” and a forthcoming book, “Business Themes to Live By.” He can be reached at mrichardson@casedesign.com.

Related Stories

Custom Builder

HUD Secretary Marcia Fudge Announces Forthcoming Resignation

U.S. Department of Housing and Urban Development Secretary Marcia Fudge has said that she intends to leave office later this month

Custom Builder

Floodproof on a Floodplain

An impressive addition to the IDEA Home series, the NEWLOOK Experience Home is a master class in engineering and creative design, with builder Michael Freiburger out-thinking an exceptionally tricky lot

Custom Builder

Why Start a Custom Building Business?

In this Taking Care of Business segment, expert coach and trainer Scott Beebe joins our host Duane Johns to talk about where custom builders could be getting off on the wrong foot

Custom Builder

3 Questions Answered About Reliable Energy in Home Construction

Energy expert Bryan Cordill makes a case for why and how propane is an answer to growing concerns about reliability and resilience in home construction 

Business

Custom Builder to Talk Color Design with Becki Owens at IBS

At this year's IBS, renowned designer Becki Owens will sit down with host James McClister, editor of Custom Builder, to discuss a variety of topics from basic color play in design to the Allura Spectrum palette, a collection of Sherwin-Williams colors curated for the benefit of pros

Business

PERC Highlights Sustainability and Efficiency at IBS with 'Clean Build Conversations'

Hear from industry standouts Matt Blashaw and Anthony Carrino at this hour-long Show Village event

Business

The Five Foundational Cornerstones

Business coach Scott Beebe shares insights into the often ignored business basics that could be the difference between long-term success and failure

Custom Builder

Start With the Why: Fundamentals of the Custom Builder Business

In our inaugural episode of Taking Care of Business, host and custom builder Duane Johns sits down with Scott Beebe, head coach and founder of My Business on Purpose, to talk vision, purpose, mission, values, and more

Business

Why AI Is Now Key to Our Trade Partner Strategy

Thompson Custom Homes Business Manager Erin Day explains how AI became a crucial part of building and maintaining successful trade partner relationships

Business

Thriving in 2024: Tips for Succeeding in an Uncertain Environment

Author and sales expert Mark Richardson shares his insights on the industry and how to rethink your approach to success in the new year

Advertisement
boombox1 -
Advertisement
boombox2 -
Advertisement
boombox3 -
Advertisement
native1 -

More in Category

Custom Builder

HUD Secretary Marcia Fudge Announces Forthcoming Resignation

U.S. Department of Housing and Urban Development Secretary Marcia Fudge has said that she intends to leave office later this month

Custom Builder

Floodproof on a Floodplain

An impressive addition to the IDEA Home series, the NEWLOOK Experience Home is a master class in engineering and creative design, with builder Michael Freiburger out-thinking an exceptionally tricky lot

boombox4 -
Custom Builder

Why Start a Custom Building Business?

In this Taking Care of Business segment, expert coach and trainer Scott Beebe joins our host Duane Johns to talk about where custom builders could be getting off on the wrong foot

Custom Builder

3 Questions Answered About Reliable Energy in Home Construction

Energy expert Bryan Cordill makes a case for why and how propane is an answer to growing concerns about reliability and resilience in home construction 

boombox4 -
Advertisement
native2 -
Advertisement
halfpage1 -