As a business owner, you have to be smart about pricing your services. If your rates are too low, you might fill your schedule with many small, low-paying jobs that make it impractical to take on high-paying ones. If your rates are too high, you risk losing the job to your competitors, leaving you with nothing to pay the bills at the end of the month.
No matter your prices, one strategy has proven itself to win more sales and sell higher-priced goods and services than any other. The best part? It’s easy, it’s simple, and your team can execute it over and over without confusion, especially if they’re already using Workiz.
The service industry calls this method the “Good, Better, Best” pricing strategy. It simply means you provide your new and existing customers with at least three price options (think of them as “service packages”) –
- Good – a solution good enough to meet your customers’ needs.
- Better – a solution that meets those needs better or in a better way.
- Best – the solution that is best suited for their overall needs at the time.
Let’s say, for example, that you’re an HVAC pro hired to take care of a leaking AC unit. Assume you look into the HVAC system and find that the leak is caused by a dust-clogged filter (rather than low refrigerant levels or frozen evaporator coil). In this case, you can offer three courses of action:
- The “good” way to take care of this issue is to simply replace the filter.
- The “better” option is to replace the filter and check the refrigerant levels, then repair the evaporator coil, if necessary.
- For the “best” option, offer to replace the filter, install new evaporator coils, and schedule routine maintenance inspections twice a year plus a visit to replace the filter every 60-90 days.
You’ll quickly see that a “good, better, best” strategy brings more value to your customer and makes more money for your business.
Benefits of the “Good, Better, Best” pricing method
“G-B-B is a strategy every company should consider.” – Harvard Business Review
More sales for you
Businesses with a “Good, Better, Best” offering show an astounding rate of 40% growth in sales, and that’s without mentioning the rate of returning customers. We’re confident businesses using Workiz won’t be any different.
More choices for your clients
A pricing plan to suit your client will equip them with knowledge about the job and create the impression that they have full control over their hiring decision. Because they feel in control, these customers will have more trust in you and your credibility as a service provider.
And if they need that AC repaired again in the future, they won’t call to complain about your prices or blame your techs for poor service because they already had the option to pay for your best, long-term solution.
More premium service sales
Not only will this detailed pricing strategy impress customers from the start, but it will also entice them to pay more than they may have originally intended. Here’s why.
Say you’re sitting at a restaurant. The menu includes several dishes – from cheap to mid-range and pricy. Even unconsciously, you’re likely to prefer the mid-range option. Your customers’ brains work the same way. When given several options, people ignore the extremes and prefer to go with the “safe” middle options, even if they come at a higher price.
More guidance you can provide
Just the fact that you label your services as “Good, Better, Best” doesn’t mean that your customers refer to them the same way. Some may prefer the “good” option due to budget limitations. Some would rather know what other customers consider the best option.
You can make it easy for them by simply labeling one of your offers as “Contractor’s Choice,” explaining what makes it the best choice for that specific customer.
Also, don’t always go for the “best” option as the top choice. Customers will appreciate it if you first point out the option that works best for them. For example, if your “best” option requires several visits and the customer is about to travel soon, perhaps the “better” option is preferred in terms of availability.
How should your “Good, Better, Best” offer look?
In the modern era, G-B-B pricing is evident in many product categories. Gas stations sell regular, plus, and super fuel. American Express offers a range of credit cards, including green, gold, platinum, and black, with varying benefits and annual fees. Cable TV providers market basic, extended, and premium packages. Car washes typically offer several options, separated by services such as waxing and undercoating. – Harvard Business Review
Long conversations can be confusing and push your customers away. That’s why the best way to present pricing options to your clients is with short, clear writing. List all pricing options, from good to best, in this order. If possible, arrange your pricing options in a table to make it easy for your clients to compare price versus benefit. The table can look like this:
We strongly suggest typing over handwriting for this kind of offer. Paperwork can get lost or damaged, and you don’t want to find yourself making the same offer twice or recapping it over the phone. Fortunately, Workiz enables you to create an estimate to present your services and their associated prices. In case you want to offer more than one estimate, we have a feature for that as well.
A sales proposal on the Workiz app (screenshot)
Making a sales proposal via Workiz
If you use field management software like Workiz, then offering more than one estimate is easier for you. Workiz features a Sales Proposals tool that lets you send multiple estimates in one slick presentation. To distinguish your services from the crowd, you can personalize these offers with texts and images.
After making the offer:
- Use the platform to show it to your prospects.
- Edit it with them.
- Get your well-deserved deposit on the spot.
Don’t forget that you can also produce invoices and keep track of inventory using the Workiz app.
Creating multiple offers with Workiz (screenshot)
That being said, it is also important to know your competitive landscape. This online job calculator lets you instantly compare prices per geographical area.
And if you’ve just heard of Workiz, check out Workiz’s full set of automations to eliminate more time-wasting tasks that prevent you from growing your business, as well as vital features for scheduling, dispatching, and monitoring every job and aspect of your business.
Workiz offers monthly and annual plans designed to assist you with business management, especially when operations are about to scale. Businesses that use Workiz increase revenue by 30% on average! And we work hard to raise the bar even higher.
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