How can HVAC GOOD-BETTER-BEST Quote Increase Sales | ZenFire

Field Service Management
May 30, 2023
9 Min Read

As an HVAC contractor, you know that homeowners want the best possible solution to their heating and cooling needs.

However, only some customers have the same budget or set of priorities.

So, how can you offer them the best solution while providing options that fit their needs and budget?

Adopting a Good-Better-Best quote strategy is one method to do this. Three different service packages are provided side by side as part of this pricing strategy, known as tiered pricing or price bracketing.

All packages contain additional services, upsells, various types of value, and a higher cost than before.

Using the Good-Better-Best pricing model, you can arrange several price points for your product or service without disturbing potential clients, who may be unable and unwilling to pay more due to special features or advantages.

You can offer customers options at reduced prices and with more money for the purchase.

Along with the multiple pricing options features, ZenHVAC can streamline your work processes to bring efficiency and optimization to your HVAC Service Contracting Business.

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How does the good-better-best quote help your business?

Flat rate pricing is where you charge a single price for a product or service, regardless of how much it costs to produce or deliver. This cost remains constant regardless of how much time or work is required to finish. An adequately calculated flat rate will cover direct and indirect costs and a healthy profit. Let’s take a case of flat rate pricing in the HVAC business if you’re an HVAC technician and charge a flat rate of X USD for an AC startup. You will receive $X whether it takes one hour or 2 hours, or even if the client requests several adjustments. Whereas in the case of time and material pricing, pricing would change after every hour and every additional request made. Now that we understand how flat rate pricing works let’s know how we should decide on flat rates for products and services for a healthy profit.

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What Is Flat Rate Pricing?

Flat rate price = Hourly Rate x Repair Time in Hours + Material Cost +( Material Cost x Part Mark-up)

Let’s see an example of flat rate pricing calculation. Consider the following

Hourly rate: $200
Time: 2 hours
Material cost: $150
Material MarkUp: 25%

Now, applying the formula the flat rate total should equal 200 x 2 + 150 + (150 x .25) = $587.5

1. Find out your customer's service requirements.

As a contractor/technician, you should be aware of and understand all the service needs your customers have and know of their budget or spending capacity.

In this way, you will understand the product preferences or services they value the most and can create a personalized pricing strategy for them.

2. Generate precise pricing options.

Make your pricing options simple and straightforward with concise language highlighting all your products’ benefits and characteristics.

Ensure that any technical terms don’t mislead clients.

3. Provide a Direct Route to Upgrades

Ensure there is a clear path to upgrades in your price packages.

Make sure the consumer is aware that, even if they go for the “Good” bundle today, they can later upgrade to the “Better” or “Best” box if they decide they require more features or services.

4. Offer Specific Recommendations

Give specific advice on which bundle will best meet your customers’ needs so they can make the best choice.

Use your expertise to guide them toward the option that will give the best value for their money.

5. Helps Customers through Visuals

Visuals can be a great way to help customers understand the different pricing packages and the features and benefits of each option.

Use visual aids to make the information more accessible and easily understood.

6. Adds a Helpful Indicator to Your Proposals

To account for the fact that some people have trouble choosing among options, we recommend that in each proposal, contractors tag one of their options with a helpful indicator like “Contractor’s Choice” or “Best Seller.”

Customers will find it simpler to make choices and more assured that they are getting the best deal possible.

By using a Good-Better-Best pricing strategy, you can provide your clients with the options they require to make an informed choice while boosting sales and revenue.

Take the time to comprehend your client’s needs and financial constraints, develop transparent pricing packages, and offer clear recommendations to assist them in making the ideal choice for their requirements.

The Good-Better-Best HVAC proposals can be generated using these suggestions.

HVAC Maintenance Contracts with Good-Better-Best Quote

The Good-Better-Best pricing can considerably impact the sale of HVAC maintenance agreements. Contractors can provide three tiers of coverage with varying degrees of service and pricing instead of just one service agreement.

For instance, the Good maintenance agreement option can cover an annual inspection and basic HVAC system cleaning. In comparison, a Better contract can contain benefits like priority scheduling and cost savings on components and labor.

The Best option might provide all the services in the Good and Better contracts in addition to routine filter replacements and round-the-clock emergency care.

HVAC contractors can provide consumers the flexibility to decide how much coverage and money they want to spend by giving them these options.

Customers may be more likely to sign up for maintenance contracts.

As a result, generating a consistent income stream for the contractor and foster long-lasting connections with their clients.

How to Use Good-Better-Best Pricing in Your HVAC Company

Train Your Technicians

Ensure your technicians have the skills to explain the pricing packages to clients clearly and straightforwardly. Please give them the resources and tools they need to assist clients in making wise selections and responding to customer inquiries.

Analyze your prices and costs.

You must have a solid understanding of your costs and prices before implementing Good-Better-Best pricing. You must understand how much it costs to deliver each level of service and how much profit you require to stay in operation.

You should also know the prices your rivals charge for comparable services. You can then choose the best prices that would appeal to your consumers.

Make service options.

You can make your service bundles by examining your costs and prices. Classify your critical services into the Good, Better, and Best categories. Ensure each package is valuable enough to warrant the price rise from one level to the next.

Customers shouldn’t feel they are being taken advantage of by paying more for the same service.

Plan your presentation.

To explain your Good-Better-Best pricing options to customers, you must develop a presentation strategy. A brochure or internet page describing the specifications of each service bundle and the benefits of each level can fall under this category.

You should also train your sales staff to present the options to customers in an easy-to-understand way and highlight the value of each package.

Tag one of the options as the “recommended” or “best value.”

As mentioned earlier, some customers may feel overwhelmed by too many options. To help simplify the decision-making process, tag one of the options as the “recommended” or “best value.”

This will make it easier for customers to decide and help increase sales of that particular package.

Monitor and adjust

Once you have implemented your Good-Better-Best pricing strategy, monitoring its effectiveness and making improvements as needed is vital.

You may find that specific packages are more popular than others or that some customers are not interested in the higher-priced options.

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Improve Close-Rates with the ultimate GOOD-BETTER-BEST Quote.

Good-Better-Best pricing is a powerful tool for HVAC contractors looking to increase sales and provide more value to their customers.

By offering multiple service levels and pricing, contractors can give customers more choices and increase the likelihood of closing a sale.

While there are some challenges to implementing this pricing strategy, such as the potential for “analysis paralysis” and the need for accurate cost analysis, the benefits can be significant.

With careful planning and presentation, Good-Better-Best pricing can help your HVAC business.

But a certain way of boosting your HVAC business operations and revenue is by using an advanced field service management software like ZenHVAC.

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