Bill Brown and a contractor expert break down tiered service plans for home-service businesses. More than three tiers gets too complicated. If you try multi-tier pricing, run a 60-day test and revert to single-tier if it doesn't work.
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If your techs are not good at walking through good, better, best, or telling that homeowner a value differentiation, then you can actually muddle it up with tiered plans. So it really needs to fit the skillset. The ladies he's got up front can talk through that well because they were doing it previously, but now they have better differentiation. If you've never done a tiered plan, you're going from non-tiered to tiered, it's important to look at that, talk through that. But yeah, we've got examples for single plan, for 2, and for 3. And, and we want to know how your team is set up and make sure that it's going to launch with success and know that we may, you may scrap it 60 days in and be like, tier's not working. We need to go back to a single, right? That's okay. Like that's part of the iteration of getting better, but it's about doing it intentionally, tracking it and making sure that you're, you know, making meaningful progress.
Would you say most contractors do multi-tier plans rather than a single one from what you've seen?
Man, I, I probably not. I would say I get as many single, this is what we do, one plan as we do, you know, the two or the three plans. I would, it's, I've hard, hard pressed to point to a lot of success for people that go more than three. It starts to become very complicated when you start, you know, layering on even more and more and more. You have to try and find reasons why tier six is different than tier one, you know, but Yeah. But I'd say it's, uh, yeah, it's probably a, an even split, you know, a third single, third two, a third three, like, and just depending on, uh, the nature of the business. If you're HVAC only, if you're HVAC and plumbing, or you've got electrical, like there's, you know, again, there's some nuances there. Uh, but that's what we do every day is we work with you to figure those things out and try to represent, uh, some examples that we think, you know, will be best for, you know, how you, you will succeed in the market.
