The Pricing Strategy That Can Help You Differentiate Your Services

By Corey Mann, Leap. 

How to integrate Good-Better-Best Pricing into your company.  

Are you looking for ways to bridge the gap between you and your customers? Allow us to introduce you to Good-Better-Best pricing. With this powerful approach to pricing, you can not only better define your services, but give your customers the power of choice to customize their interactions with your company. Read on for a closer look at this pricing approach and to learn more about how it can bring new revenue to your business and drive higher profits. 

What is good-better-best pricing? 

Good-Better-Best is a tiered pricing strategy that commonly offers three product options for homeowners at gradually increasing prices. Specifically, this includes a “good” option, “better” option, and the “best” option. According to Harvard Business Review, it’s a “psychological pricing strategy” that gives the customer the ability to determine which option is best for his or her specific needs and circumstances. 

In fact, Good-Better-Best pricing isn’t a new concept. It’s a proven strategy that gives homeowners the power to determine value. Some homeowners will value cheaper options due to their financial means, while others will value more expensive options with better materials or features. This model serves all sides of your customer base while helping you generate more growth and revenue. But how do you present G-B-B pricing? Implementation alone is one of the main reasons why many companies have yet to embrace this strategy. 

How to implement G-B-B in your business 

Implementing Good-Better-Best pricing doesn’t have to be as tricky as it may seem. If you’re currently offering one price point, use it as the “better” option. In addition, create a package that increases quality as the “best” option and a package with lower quality materials as the “good” option. In general, you want a tiered strategy that has a balanced progression of improvements. 

• Choose attributes that will separate price points, such as roofing types or warranties.  

• Retain cheaper-pricing benefits in higher-pricing offerings so that every step of the ladder has clear improvements for customers to see.  

• Have a low step-up cost to keep high margins like a better warranty. 

You’re playing offense, defense, and consumer psychology all at once, notes the Harvard Business Review. And the goal is to make your products and services more accessible to more customers. As a result, defining this pricing strategy can help increase margins and give you more brand recognition in the process. 

Don’t set a “good” price that’s more than 25% below the “better” option. Moreover, the “best” price should not exceed “better” by more than 50%. And make sure to create names for your packages that help homeowners quickly identify the best option for them. 

*These numbers are sourced from Harvard Business Review  

Bridge the customer gap with Leap 

As you can see, Good-Better-Best pricing provides customers with options and clarity. And today’s technology can provide even more solutions. In fact, homeowners want more than pricing options. They want payment options too! 

With Leap, your business can accept payments securely without having to manually record the transaction. You can present pricing, send documents, accept payments, sign contracts, and secure financing all in one place. It’s a big win for the industry that is already paying off for contractors across the country. 

Make selling your services & presenting price easy 

Price options. Leap gives you the power of generating tiered price options and presenting price to homeowners in a clean and professional package. Before Leap, this was done by repeatedly redoing the math in a template and involved a lot of linking and logic. 

Now, successful contractors who use Leap build their “good, better, best” packages within the estimates section and can populate the price from each package into the contract. 

Offer financing and payment Options. Home improvement companies find collecting payment to be more time-consuming than it needs to be. Offering payment options can boost sales, reduce turnaround time, and establish creditability. 

With Leap, you can offer several payment options with the help of Leap Secure Sign, Payment Capture, and submit several credit applications and receive a decision instantly. 

Close the deal. Using Leap Secure Sign is as simple as generating a contract and hitting the sign button. Once you capture the customer’s signature, you can send it to different email addresses. This also provides you with the ability to sign a signature directly on the iPad. 

No more sifting through your email to find a customer’s contract or payments. With Leap, you can centralize and organize all communications with a customer. 

Contractors who utilize Leap are saving invaluable time and resources. And you can easily build and implement Good-Better-Best pricing into Leap with more customization. This all-in-one sales software can help you leverage your team to bridge the gap between your business and your customers. 

Learn more about Leap in their RoofersCoffeeShop® Directory or visit www.leaptodigital.com. 

Original article source: Leap