So you’ve set up all your products and labour pricing in your quoting software, and all your staff are quoting consistently. Great! But what happens when you have to deviate from this price? Enter price tiers.
A one-off change is easy for the project manager to manage, but price tiers can help ensure that your team consistently quotes a special rate for set customers. This article will explore how to use and set up price tiers.
With price tiers, you can assign multiple prices for different customers. Once you've created your price tier you can add multiple prices to of any product and it will automatically apply to customers in that tier. For example if the default price is "$900", you can set the new price tier called "Member Pricing" and reduce the price to “$500”. This special rate will only apply to any clients that you add to the "Member Pricing" tier.
Watch the overview video to learn more.
Not all clients come to your business accepting the default rate. Some clients may negotiate the rate down because they plan to buy frequently, or perhaps you propose a special rate to win a contract. Whatever the reason, you want to ensure you meet your contractual obligations.
With a price tier set-up, every quote and invoice created for that client will automatically use the special rate when needed. This helps you negotiate better and more freely without worrying about it getting complex for your team. You don’t need to worry about making sure that everyone who might engage with the client knows the rate they get.
Different customer segments are likely to be more or less price sensitive based on a wide range of factors. Price tiers enable you to respond to this without wildly varying the price you offer job-to-job or client-to-client. You can set up a special rate for particular industries or groups, such as “End User Customer” or “Wholesaler,” that can help you be more competitive while still ensuring that you are profitable and strategic.
If you empower your team to change prices for clients, price tiers can help remove a lot of doubt in the quoting process. One of the common problems with varying prices is trying to keep it consistent from the customer’s point of view. If a client engages your business for a service you charge $X for, they will expect the same price when they return.
Without consistent price tiers, your team may have to trawl through previous quotes to see if that client has ever bought that product and what rate they will expect. Put a price tier in place for this client's segment and clearly show on your quotes when they are getting a “one-off” discount and you’ll save your team time on every quote for a new client.
Have you ever wanted to reward your clients for loyalty but don’t know how to implement it? If you have ever been part of a membership group like RACQ you’ll know that loyalty and years of membership can be rewarded with discounts or special services.
You can set up price tiers to segment your customers based on their tenure with your company or their spending. Once they have met the criteria, you can change their price tier and give them access to lower pricing.
Learn how price tiers work and how they can help with your business with an obligation-free training session. Book in a time today.