This article explains how to charge less for basic service and earn more on custom solutions.
We are not idiots, and we will not recommend slashing your prices in hopes of getting more volume. This is a lose-lose game that ends in court sooner or later.
Instead, we will follow the pricing principle of airlines, hotel networks, and car dealerships.
The idea is to strip the estimate and remove all unnecessary items that will make your company more competitive.
The plan
- Strip the estimate
- Itemize the service
- Create a price list
- Write rules to dynamically adjust depending on volume
- Create quotation templates to quote quickly
- Add graphics and assurance to your proposals
- Simplify
- Teach an assistant to generate estimates
Structure of turf installation quote
First, let's look at our estimate and break down basic service into smaller pieces:
Ground preparation components:
- Turf removal
- Soil removal, grading
- Shape adjustment
- Leveling
- Gopher protection
- Weed protection
- Weed prevention
- Soil stabilization
Then, edging:
- Polymer
- Treated wood
- Concrete
- Steel
- Aluminum
How about turf?:
- Do you offer the same-priced materials or differentiate them?
- Does it take longer to install short, dense turf compared to taller, light turf? I bet it does!
Seams:
Infills:
- none
- regular silica
- pet turf
- playground
- cool
- organic
You see, there are many components that could easily eat your margin if thrown in at no cost.
But every item is a choice. And it is hard to know what the priority is until the client sees the price and can play with it.
Cost Savings and Profits
By eliminating non-essential components, you can reduce costs and enhance profitability through optimized labor and material usage. Empower clients to select essential features, thereby increasing your revenue. Position yourself as the most cost-effective and precise artificial grass installer in the region. Tailor your services to meet customer preferences, ensuring they pay only for what they value. This strategic approach makes it challenging for competitors to match your offerings, as their generalized packages often include unnecessary elements.
Real numbers case study
This quotation system boosts profitability by 30-70% and converts more clients due to lower price and customized offering.
For example, if you are currently closing 6 jobs per month and generate $60,000, you are keeping approx $20,000 of gross profit.
The dynamic quotation system will help you do the following:
Close 8 jobs at $72,000 and keep $30,000 of gross profit.
Outcome
- You close more turf installs at a higher margin
- You look like a pro in specific niches like sports, playgrounds, and putting greens
- You are not quoting anymore. Your assistant does it for you.
- Quotation is now a process that does not rely on one salesperson.
- Same-day quotes become routine.
- You cut driving to 30% of what it was before and have the capacity to quote 3x more jobs.
Action
We tested this approach and we are using it ourselves. But we would be glad to embed it into your business.
Want to learn more? Request a deal below.
But, before you do that, read what can happen to your business when you start quoting smart.