How to Offer Multiple Tiers of Service
An HVAC Contractor in Virginia asked:
I want to know how to offer multiple tiers of service, with good, better and best options. What kind of options would you offer?
“First of all, you want to have more choices for your homeowners, not every system is gonna be the right recommendation for every homeowner,” started EGIA faculty member Weldon Long. “Some people are more concerned about efficiency than others, some may be more concerned about indoor air quality than others.”
Long also explained that before even getting into a sales call, a company should have different packages they can offer to address a wide variety of different wants and needs that homeowners often have.
“There’s a lot of research that shows that when people are evaluating price, there’s a lot of comparison that they’re doing. You don’t want your homeowner comparing your $10,000 system to a $5000 system,” said Long. “You want your homeowner to be comparing a $10,000 system to maybe a $15,000 or $18,000 system, because that system will seem like less if it’s compared to a much higher number.”
Long explained that when a homeowner is presented with tiers of options, they tend to go right down the middle and choose a compromising solution. So if you can present your system as a ‘middle’ option in terms of value and price, homeowners will see that as both a good deal and a quality purchase that fits their needs.
Long’s own company offers four different systems, each at a different tier. “The two in the middle, it’ll come as no surprise, were our most popular systems, because people tend to make compromise between the cheapest and most expensive systems.”
Weldon Long is a successful entrepreneur, powerful speaker, sales expert and author of the NY Times Bestseller, The Power of Consistency – Prosperity Mindset Training for Sales and Business Professionals.
Our faculty members have also answered questions on other topics related to financial structure in the contracting world, including What Are Your Priorities on Sales Calls? and How to Close Sales When Competing Against Better Offers.
Hear more from our “Ask The Experts” faculty members on “Cracking The Code,” our weekly web series.
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