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  1. Shaun McLane
    May 17, 2011 @ 7:18 am

    Free Pool Service. Absolutely Free!!! You Pay Nothing for Service! **

    **free pool service only available with $90/month travel charge

    (and yes, I realize that wasn’t the point) 😉

    • Darren
      May 17, 2011 @ 8:43 am

      Good, I was hoping that came through in the post…it was late! But to your point, there are two rules of thumb:

      For commodity-based services like say pool cleaning, having many different price points and service levels helps wedge clients in that might otherwise not become clients. And for the bigger job – remodeling, windows, roofing whatever…giving the client 2 or 3 proposals at different price points (and service levels) not only improves your chances of them picking one of your 2 or 3 bids over the others who submit one, but it also shows that you have the consumer’s best interest in mind by allowing THEM to chose what they think will work for them…within the scope of work of course.

  2. Tess Wittler
    May 17, 2011 @ 11:23 am

    To add onto Darren’s comment, most consumers, when given the choice, will pick the middle option. So give them three options … they will pick #2 most of the time, and make sure you are comfy with the pricing of option #2.

    And as a consumer who just got an outrageous bid on a job, it would have been nice if this contractor would have provided options from which to choose. I didn’t want the Cadillac when the Yugo would have worked but I would have probably opted for the basic-model Ford.

    • Darren
      May 17, 2011 @ 11:48 am

      That’s funny, I just had that same conversation a week or so ago with Chris when we were talking about his stuff. If you WANT them to take a particular package, make that one the middle one!

    • shaun mclane
      May 17, 2011 @ 12:09 pm

      Coming from a sales background, I can safely say the plan B close is solid, but VERY old school. The newer model is to provide 4 options: Yugo, used Honda, brand new Honda with GPS, and the Cadillac. On top of those options, pad the price slightly.

      Doing this, your client has more than one “middle” option, making them feel like they actually have a choice, plus, by padding the price, you can drop it down to the actual price after the client tries to “strike a deal.” The client walks away thinking they’ve won by talking you down, and you smile knowing you got your going rate.

      • Darren
        May 17, 2011 @ 12:15 pm

        I think that is what Tess and I are saying. If you have 3 price points and want the consumer to take the high one, add another layer on top of that one and make it the middle option. I know it is old school, but that is how people buy.