In this post, we're going to tell you the top 5 pricing mistakes that Residential Contractor companies are making in their business, and how to avoid...
Boost Your Profits with Multiple Pricing Options
What could make the best mobile CAD estimating software even better? How about allowing you to incorporate three project pricing levels right in your onsite proposal? Without drawing the job three different times? If that was your answer, you’re in luck.
What’s Good/Better/Best and Why Should You Use It?
ArcSite just introduced Good/Better/Best pricing options from within the app. Turn the ArcSite proposals you love into good/better/best formats with a few taps of the screen. But why would you want to provide good/better/best pricing?
First, because you should stop offering discounts. That’s right - according to the Harvard Business Review, a “g/b/b” framework allows you to tier pricing cleverly to showcase your full range of offerings on a sliding scale. This requires you to have a good grip on your baseline costs for each job (but ArcSite makes that easy with price-as-you-draw simplicity).
Once you understand what a job will cost you at each tier, you can position your services as g/b/b. Good will be the cheapest option (and the one that, let’s face it, most customers will choose). That’s just the nature of the beast. However, when you show a customer possibilities, you have a much better chance of closing a better or best deal.
Be Your Customers’ Best Friend
This approach pairs well with another piece of advice we like to offer: become your customer’s design consultant. When you show up with ArcSite in hand, you have their attention. All you have to do is show them what could be possible in their space. Whether it’s a new fence or a synthetic lawn or upgraded gutters, you can show your customers the best options for them - and your bottom line.
How Do I Implement a Good/Better/Best Pricing Structure in ArcSite?
It’s easy! You can use the same basic drawing for all three options. Then it’s just a matter of configuring your options (unit prices should already be there in ArcSite), and sending to the customer. You can even accept digital signatures to close onsite!
So stop offering discounts, and move to a good/better/best framework to close more jobs at better margins, while giving your customers the power to choose among your offerings.
Stay tuned next week for a full breakdown of the proposal and payments processes in ArcSite.