Lead with your High End Offering to Increase Profitability
Many of you are probably already familiar with the concept of Good-Better-Best Selling for in-home sales. It's a tried-and-true sales method that's been championed by manufacturers for years and reviewed countless times at sales seminars. Generally, it involves giving your client three options:
- A "Good" entry-level option with basic performance
- A "Better" mid-level option that offers greater performance and enhanced aesthetics at a great value
- A "Best" high-end option that appeals to your clients' desire for the highest performance and/or distinctive aesthetics
This approach has several advantages:
- Garner more consideration. Educating clients about multiple options allows them to make an informed choice and helps establish trust.
- Close more sales. By presenting multiple options, you position yourself as an expert and set yourself apart from competitors that don't bring up alternatives. This can help you earn the business, even if the client just goes for your entry-level offering.
- Close higher-profit sales. Even if only 5-10% of your sales result in the "Best" scenario, and 20%-30% of your clients go for the "Better" option, those jobs still represent a higher-profit sale than if you had only offered your "Good" proposal.
You’re probably asking yourself, “why don’t more people adopt this strategy?” Simply put, it’s harder. It takes more time to be consultative and provide multiple options that could fit your prospect’s needs.
Is the Labor Shortage Capping your Opportunity This Year?
Many contractors are feeling the pinch of the ongoing labor shortage. If you can't scale your workforce and can thus only take so many jobs during the year, you need to work to make that set number of jobs as profitable as possible if you want to grow your sales. If you're already incorporating Good-Better-Best selling into your sales strategy, that's great! But what if there was a way to make more on every sale?
An Answer: Best-Better-Good Selling
One way to try and increase your profit is to modify the traditional Good-Better-Best selling approach by reversing the order of your offerings and leading with your Best offering. Advantages to this approach include:
- Making it OK to ask for more. If there's no shortage of work, is it really that risky to ask for more money for your craft? You always have the "Better" and "Good" options to fall back to. Moreover, if you've presented "Best" and "Better" and the client is ready to sign, there's no need to present "Good"!
- Premium positioning. When you lead with your "Best" offering, you position your company as one that prefers to work with premium products, and it infers premium workmanship as well. This can help differentiate your company in the minds of your prospects, even if they end up hiring you for your "Better" or "Good" offering.
- Making "Better" Reasonable. By starting with the most expensive option, you make your "Better" option seem more reasonable by comparison. This can help your "Better" offering seem like the best value and most reasonable choice, as opposed to leading with your "Good" option - potentially resulting in a greater percentage of "Better" sales.
Best-Better-Good Can Look Different to Different Demographics
To make a Best-Better-Good selling strategy viable, it's important to consider your prospect's persona and craft an offering that makes sense and isn't out of reach. You can customize your approach based on the age and size of homes in the neighborhood, as well as the needs of the homeowners. Some potential examples from a roofing perspective:
- Larger homes/built in the 90's or newer/steep pitched roofs (GAF example)
- Your "Best" option could be a luxury or designer shingle with distinct aesthetics that would showcase well on a steep-pitched roof, setting the home apart with incredible curb appeal. GAF Camelot II
- "Better": High-performance SBS shingles. GAF Timberline Armorshield II
- "Good": Designer shingles with premium color blends. GAF Timberline HD or Timberline American Harvest
- Small to medium-sized homes/built in the 80's or older/lower pitched roofs (CertainTeed Roofing Example)
- "Best": Focus on performances rather than aesthetics; SBS shingles and the granule retention story could play well for homeowners looking to never replace their roof again. CertainTeed NorthGate
- "Better": Designer shingles with premium color blends. CertainTeed Landmark PRO
- "Good": Economy Laminates. CertainTeed Landmark
This strategy is designed to help increase your prospects' consideration of "Best" and "Better" offerings, resulting in higher-profit jobs on the sales you close. Try it out this season and see if you can increase your take rate on your "Best" and "Better" offerings!
At Wimsatt, we're happy to help you craft your Best-Better-Good selling scenario. With over 300 shingles from six different manufacturers in stock across the company, we have an unparalleled offering of shingles including luxury, designer, SBS, and economy laminates. No matter which manufacturer you prefer, you can create a tiered selling approach from our stock offering that can help you boost your profitability this year. Ask us - we're here to help!
About Dave Karras
Dave Karras is the Marketing Manager at Wimsatt Building Materials.
December 12, 2017
November 11, 2017
October 10, 2017