OnDemand WTP Pricing Research

Opinion: Small changes equal big results | SBJ

Simplify your pricing
I run into this roadblock with some frequency: Business owners – especially contractors – make pricing jobs way too complicated. They wait to give the price until they have every screw priced out and may take days to get the proposal to the customer. You don’t need to have all the parts dialed in at the sale moment in the customer experience. Don’t make it a hassle for a customer to buy from you.

You could create a price book with estimated materials and a catch-all dollar amount for extras, or connections. For an example, a plumber’s midrange disposer task could include a round-high number for a three-fourths horsepower disposer and $25 for other materials. Then, account for the materials used from the truck using a sound truck restock procedure. For big jobs, estimate the big items (think 80/20 rule) and add a catch-all dollar amount for the rest. Then, after you have sold the job, create the detailed purchase order, specific to that job.

Price faster, with rounded numbers for materials and generous labor hours. Make it easy on you and your customers. Really, it will be OK.

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Opinion: Small changes equal big results | SBJ.