Snapshot Survey Results | Pricing
In the November 2023 Snapshot Survey, we asked contractors about their methods regarding pricing. Here’s one survey question and its results from the “Pricing” summary report, which will be available in its entirety to EGIA members on 12/25/23.
When do you offer discounts on your products or services? (Select all that apply)
Discounts are strategically used by businesses, with 35% offering them during shoulder seasons to boost business, and 33% for service agreement customers. Additionally, 21% provide discounts when customers bundle services. The selective use of discounts indicates a tactical approach to maintaining profitability while attracting and retaining customers.
The strategic use of discounts, particularly during off-peak seasons and for bundled services, indicates an understanding of customer behavior and market dynamics. This approach not only helps in maintaining steady business flow but also in building customer loyalty. It is crucial, however, that contractors balance discount offerings to avoid undermining the perceived value of services.
Here’s what an HVAC contractor from Mississippi said in the survey:
“We make it clear we sell value and not price, and don’t ever want to be the cheapest. We also have items to take away when customers want a discount. If they want us to price match, they must be able to show us apples for apples and I’m not afraid to walk away from a sale if a customer isn’t prepared to pay for our value.”
Contractor University members can click here to access all of our educational resources on pricing as well as other subjects to continue growing your team’s collective knowledge.