The price quote is an incredibly powerful business tool that can attract or deter possible paying customers.
As a business owner or manager, you know that, if a customer is asking for a price quote, they are seriously looking into hiring your services or buying your product. However, many prospects also ask for a quote in order to compare the price with the competition. Therefore, it’s important to find ways for your quote to stand out without reducing the price to unsustainable levels.
One way to do this is by creating packages that add value for the customer without reducing the overall price. Another way is to explain why your prices are higher than the competition’s (added experience, increased knowledge, better products, and so on). And finally, another way is to make sure you provide customers with maximum accuracy when calculating the price.
And, here’s how you can make sure your quote is 100% accurate:
#1: Use the Right Software Tools
Yes, software tools can be of help here as well!
In fact, it’s highly recommended that you use a highly specialized tool to get an estimate on a specific type of job. For instance, a piece of software for plumbing estimates can help reduce the time spent running calculations and trying to figure out the cost of a job for a new customer. In addition, the more you use such a software tool, the more refined it will become in estimating the costs of a job because it will include a wider range of data.
In addition, if you pair it with a time tracking app that accurately measures the time spent on a job by each employee, your level of quoting accuracy may get dangerously close to 100%!
#2: Consider all the Requirements of the Job
Pricing is never a straightforward job since you need to include all the costs that keep the business running – not just the ones that are relevant for that specific project.
If we continue with the plumbing example, a hypothetical pipe replacement job is not just about the costs of the pipe and the time spent with the replacement. The final cost should also include transportation costs (how you get to the job site), time spent on the road, expertise needed for selecting the right pipe, time spent discussing the job with the customer, and so on.
#3: Compare with the Right Competitors
Your competitors are not there just to annoy you and keep you in check. They also provide a realistic view of the market and let you know if a business like yours can thrive in that segment. Even more, the right competitors can give you a pretty good idea of the right price levels and how to attract new customers.
Please note we mention “the right competitors.” These are the businesses on the same level as you (as size and type of customers). After all, it is futile to compare your prices with a large corporation where the costs and risks involved are higher!
In short, an accurate price quote is one that takes into account the target audience and their budget, the same-level competition, and the requirements for keeping the business profitable.