Pricing and packaging: the lever that pays on the next invoice

What the tune-up is

It is a focused review of the money side of each sale. Many owner-led businesses set prices years ago, adjusted them by feel, and have since watched costs rise faster than rates. Others charge reasonable list prices but give so many informal discounts that the real price is much lower.

The tune-up deals with both. It does not involve a full pricing strategy overhaul, which is a longer piece of work. It looks for the quick, defensible moves that a 90-day sprint can test and measure.

Who it is for

• Businesses that have not reviewed prices in two or more years.
• Teams where most quotes include a discount nobody asked for.
• Firms that offer one option per quote, so customers can only say yes or no.
• Companies with many small jobs that barely cover the cost of the visit or the paperwork.

What is included

1. Price-realisation analysis. From the leak diagnosis, the gap between list and actual price, by service line and by salesperson.
2. Good-better-best options. Two or three tiers per main service, so buyers choose between options instead of between you and a competitor.
3. Minimum charge and small-job review. A floor price or a bundled minimum so small work stops losing money.
4. Add-ons and attachments. Items that naturally belong with the main sale, offered every time rather than when someone remembers.
5. Quote presentation. Layout, wording and the order options appear in, which affects which tier people pick.
6. Discount rules. Who may discount, by how much and in exchange for what.

Timeline

Pricing work starts around day 11, straight after the diagnosis. The first changes go onto a test share of new quotes by about day 20. By day 40 there is usually enough data to compare tested and untested quotes on both average sale and win rate. Roll-out across all quotes follows, and existing-customer increases are timed to renewals or a notice period.

A worked example

A firm sells 120 jobs a quarter at an average of $1,800 and a 28% gross margin. Adding a "better" option priced 15% above the standard one, and assuming a third of buyers pick it, lifts the average sale by about 5%, to around $1,890. On 120 jobs that is roughly $10,800 more revenue per quarter. Because the extra price carries little extra cost, most of it falls through to margin.

Run the same arithmetic on your own figures. If the change also drops your win rate from 40% to 38%, check whether the margin gain still outweighs the lost jobs. Usually it does, but the sprint measures it instead of assuming it.

What changes for your team

Sales staff get a short price sheet with the new options and the discount rules in plain language. The person who approves exceptions is named. Quote templates are updated so the options appear in the same order every time, which keeps the test clean and the customer experience consistent.

How results are measured

We track average sale, gross margin per job, price realisation (actual divided by list) and win rate, all from the ledger. Tested and untested quotes are compared over the same weeks so seasonality affects both equally.

Mistakes to avoid

• Raising every price by the same percentage. Some services are under-priced and some are not.
• Announcing increases without a reason. Customers accept increases better when told plainly why.
• Letting sales staff override the new options. Discount rules need an owner.
• Advertising "savings" against a price nobody paid. That kind of claim can mislead buyers; keep it simple and accurate.

For a step-by-step approach, read the guide on raising prices without losing good customers. Then call, text or email to discuss your pricing.