Having a comprehensive electrician prices list for your services is crucial to ensuring you’re providing clients with intrinsic value. However, simply having a price list is not enough; you need to know how to use it to your advantage on the job.
In this article, we’ll offer some pro tips to help you leverage your electrician prices list to increase profitability and create happy customers.
Read this article to discover how to:
- Confidently and transparently present prices, offering customers several options
- Present your pricing with top-shelf electrical software
- Raise prices with minimal pushback
Establishing Transparency from the Start
When providing clients with a quote, be transparent from the start about your pricing structure. Explain the different pricing components and let them know how you arrived at the total cost.
As a result, you can establish trust with clients from the beginning, which makes it easier for them to understand your rates.
Routinely Update Your Electrician Prices List
The cost of materials and labor changes over time, and so should your prices. This is especially true with the increase in inflation of the past few years.
From 2021 to 2022 inflation rose 6.5%. By regularly reviewing your prices, you can adjust them as-needed to maintain optimal profitability.
In fact, did you know that a 1% increase in pricing yields an average 11% increase in profit? While a 1% price increase might seem miniscule, it can yield a substantial increase in profits. Plus, most customers won’t flinch at such a small increase.
How to Increase Prices Without Losing Customers
There is no guarantee you won’t lose a few customers. However, there are a few strategies businesses can implement to minimize the impact of a price increase:
- Communicate the reasons for the price increase: If you clearly communicate the reasons for the price increase, such as increased costs or improved product quality, customers may be more understanding.
- Remind customers of the premium value of your services: Remind customers this price increase allows you to continue providing them with the same high-quality services they already love. This way, you can reestablish your business as the leading electrician service provider to justify the increased price.
- Focus on customer loyalty: Reward loyal customers with discounts or other incentives to keep them coming back, even if prices have increased. You can even use this as an opportunity to get more customers by providing them with an exclusive referral offer so they can get a future discount or free upsell with each successful referral.
By taking advantage of these simple strategies, your electrician business can mitigate the potential impact of a price increase and minimize the loss of customers.
Offer Discounts for Bulk Orders
If a client needs several jobs done, consider offering them a discount for bulk orders. This can be a great way to incentivize clients to choose you over the competition. Plus, discounts increase your overall revenue with increased business.
Be Willing to Lose a Minimally Profitable Customer
If a client is looking for a better price, use your electrician prices list to justify how much you’re charging. Explain the costs involved and let them know your prices are firm.
Remember, you WILL inevitably lose customers during a price increase. However, you can minimize this loss by justifying your prices. While most customers likely will accept your prices, some won’t. Keep in mind, it’s better to replace a minimally profitable customer with a more profitable one.
Utilize Different Pricing Tiers
If you offer different levels of service, use your electrician prices list to showcase these different tiers and the benefits of each. This allows your clients to choose the level of service that is right for them and their budget.
Use Electrical Software to Offer Price Options
The best electrical software arms your business with digital price books to present prices to customers and offer options. This is an easy way for electricians to set the customer at ease by placing the onus on the customer.
Digital price books provide an easy way for electricians to set the customer at ease by offering pricing options. It also allows them the opportunity to sell additional services.
Here are some of the price presentation features to keep in mind:
- Good, better, best options put the focus on the customer and create a better customer experience.
- Screens show additional items for the electrician to suggest. These price books are easy to update and change.
- Show the customer the products right on your phone or tablet. Plus, you can customize the product offerings and your markups.
- Upselling is simple by suggesting additional items to bundle at the right time.
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Leverage Your Electrician Prices List Today
By using your electrician prices list to its full potential, you can improve your business and provide customers with the value they are looking for. Here are a few takeaways:
- Customers appreciate transparency and options when deciding what services to purchase
- Routinely reassess job profitability to determine when to raise prices to maintain maximum profitability
- The #1 electrician software is the most professional and efficient way to present your electrician prices list on the job. Both your staff and customers will favor this process.
Now, you have several pro pricing strategies to present your electrician prices list on the job! With this knowledge, you will be better prepared to use pricing to your advantage—minimizing friction with customers.
Related: The Complete Manual for Electrical Pricing