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One of the most powerful scripts we've ever taught is the Cup of Coffee script, a strategy I’ve been teaching for nearly 20 years. Those who apply it rave about how effective it is.
In this article, I’ll walk you through this script and how you can use it to handle the common fee objection: “But the other agent is cheaper.”
We’ll be referencing our ‘PM Fee Script Secrets’ book, which covers over 50 common fee objections along with proven responses.
You can grab a free copy of the book at stopdiscountingfees.com—all you have to do is pay for shipping. Let’s dive into this script and how to apply it effectively.
Before diving into the Cup of Coffee script, it’s essential to have quality points of difference that matter to the property owner. These are tangible benefits that make your service stand out, like:
These features demonstrate your commitment to getting the best tenant at the best rent in the shortest possible time. The script will only work well if you've established these points of difference with your clients.
Many property managers are bad at math (I was no exception, having failed math at school!), but understanding what 1% means is crucial.
When clients ask for a discount or say the other agent is cheaper, they almost always focus on the management fee. It's rare that they focus on the leasing or lease renewal fee. Over 95% of the time, their concern is about getting a 1% discount.
This is great news because once you master two or three scripts, you’ll have most fee objections covered! Let’s break down what 1% really means in practical terms.
Imagine the weekly rent for a property is $600. What’s 1% of $600? It’s just $6. Now, if you’re in the U.S. and dealing with a monthly rent, you’ll need to calculate that based on your monthly rent rate.
The key is to understand what that 1% equals in dollars.
Next, you’ll want to relate that amount to something the client purchases regularly. This is where the Cup of Coffee analogy comes in.
In many cases, the 1% difference is the equivalent of a cup of coffee a week—maybe even less! In some areas, a single cup of espresso coffee costs more than $6.
In the USA you may compare this to brewed coffee from the local 7 Eleven store. In this case, $6 per week maybe two cups of brewed coffee.
It’s all about putting the small fee difference into perspective with a product your prospect likely consumes on a regular basis.
Now that you’ve set the stage by explaining what 1% really is, you can introduce the Cup of Coffee script. Here’s how it works:
Scenario:
The property owner says, “Can you match your management fee with the other agent down the road?”
Your Response:
"Mr. Smith, I can see that you want to use our services. Can I confirm that it’s all about the fee? If we agree on the fee, will we get your business?"
Assuming the answer is yes, continue:
"Do you think we are worth more than a cup of coffee per week? Because that’s the difference in management fees between us and the other agent."
At this point, the client should have already seen your points of difference—such as your use of handbooks or advanced marketing technology. Now, you can hammer home the value:
"If you don’t feel we’re any different from the other agent, did they show you their Property Owner’s Handbook? Did they show you their Tenant Handbook?
Did they demonstrate how they’ll use virtual tours or enhanced photography to market your property and find a tenant faster?"
When the owner responds "no," you can close with:
"Mr. Smith, that’s why we cost that little bit more. Did you know that the cost difference between us and that cheaper agent is just a cup of coffee more per week?"
The Cup of Coffee script works because it trivialises the 1% fee difference, showing just how small it is in the grand scheme of things. For most people, a cup of coffee is an everyday indulgence they don’t think twice about, and this makes them realise that the small difference in fees is insignificant compared to the superior service they’ll receive from you.
However, this script may not work for everyone. Some clients might calculate that $6 a week adds up to $312 a year, but for many, the realisation of how small the 1% difference is will be an epiphany for them.
For a more in-depth look, turn to page 56 of the ‘PM Fee Script Secrets’ book, where you’ll find Secret 18, Script 2. This section breaks down the management fee difference, explaining how to turn it into an everyday product comparison.
The next time a client asks you to match the other agent’s fees, you’ll be prepared with the perfect response. Just remember to highlight your points of difference first, so the client understands the value you bring before you introduce the Cup of Coffee analogy.
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