Tiered pricing systems are an easy way to market your products and services, giving your customers what they need while still achieving maximum profits for your business. If you’re using an HVAC block load analyzer but not offering a tiered system with four pricing options to your customers, you’re not making as much money as you could be.
Why Multiple Pricing Options Work
It’s mostly psychology, but also boils down to what your customers need and, ultimately, what they can afford. When you have four options for them to choose from, not only are their choices clearly laid out for them, but they can also see the advantages of upgrading from one tier to the next.
Of course, it’d be great if all your customers selected the most expensive pricing option, but that’s not usually how it works. When you offer four pricing options through your HVAC proposal app, your customers are more likely to pick a price that’s right in the middle, and that’s a good place for you both.
Highlighting Different Tiers
Visually highlighting different levels of prices is a great way to upsell on a product or service. Creating level tiers from lowest to highest of what you’re offering will create a dilemma for the customer who might already be weighing their options. They don’t want the cheapest option, but they don’t want the most expensive option, either. That’s why you should always list your prices, left to right, from lowest to highest.
As your customer’s eyes scan the levels from left to right, they generally land somewhere in the middle on an option that isn’t cheap, but also isn’t expensive. Instead, they get an average price they can afford. Every tier should have a description of what’s included. As the tiers (and prices) increase, so should the benefits. When your customer feels like they’re getting more bang for their buck, they’ll be more incentivized to move up a tier — and that’s what you want!
Good, Better, Best, Elite Approach
Many people have heard of the “good, better, best,” approach. It’s a great way to close sales, as it lets you offer varying prices and services to the same type of customers, but they can buy based upon how much they want to spend at a given time. We like to take it one step further, which is why we recommend you implement a fourth tier: the “elite” offering.
To start, you’ll have your low level, basic package on the far left. This is your “good” option, which is generally the tier that offers the least but is the cheapest. A low-priced, “good” offering can make a product accessible to more customers, so it may land you more sales. As you go up the tier — from good to better, better to best, and best to elite — your prices and services will naturally increase.
When you get to the far right side of your tier, the “elite” offering, you’ll offer everything your customer could possibly need and more. It’s all about catering to your customers and growing your business as a result. More often than not, your customers will land somewhere in the middle of your pricing options, but offering multiple tiers for them to choose from enables you to close deals.
The Enterprise Selling Solutions Approach
At Enterprise Selling Solutions, we’ve developed an HVAC proposal app that lets you offer multiple pricing options so you can close more deals. Not only can you quickly produce proposals via an HVAC block load analyzer, but you can offer detailed information about each tier you offer, allowing your customers to make a good, educated decision. To learn more about why you should offer four pricing options, get in touch with us today at 904-299-8103!