Ron Smith
Contributing Writer
Ron Smith Consulting & Coaching
In the HVAC industry, many contractors when proposing a replacement equipment system to a prospective customer use the “Good, Better, Best” sales principle. The idea being that a customer has three, choices for their investment and hopefully they will choose one of the three resulting in the contractor securing the job.
There has been considerable discussion by contractors whereby they ask a question of one another or of a consultant such as I the following question: “Should I present my proposal as “Good, Better, Best” or should I present my proposal as “Best, Better, Good”? It’s a worthy question and the contractors are getting mixed answers, which is of little help to them.
When the contractors ask me the question “Best, Better, Good” or “Good, Better, Best” I tell them neither of the two because I totally disagree with the sales principle. Most often they are shocked with my response, but whether they ask me what I mean or not, I explain my response. You’ll understand my answer as I continue.
The contractors’ “Good” offer is most often the lowest permissible SEER equipment with whatever is necessary to complete the installation and nothing more. The “Better” offering is higher SEER equipment with whatever is necessary to complete the installation plus sometimes more. The customer’s investment is obviously more than the “Good” offer. The “Best” offer is even higher SEER equipment with whatever is necessary to complete the installation plus more, and often one or more accessory items and/or a longer warranty or guarantee. And, with even a higher investment for the customer.
Many contractors try to influence the prospective customer to invest in the “Best” choice because it’s the most expensive offer and provides the most profit to the contractor. I also disagree with that principle. The “Best” choice may well be best for the contractor but not the correct choice for the customer and family.
It’s a fact that many people believe they don’t want what in their mind is the cheapest choice (“Good”), but also believe they really don’t deserve the very highest choice (“Best”). So what do they do? They invest in the middle choice (“Better”).
In my HVAC contracting companies rather than having three choices, we had four choices so there was no middle choice. We most often termed the four choices as Standard, Deluxe, Premium and Presidential. Starting with the Standard choice, the SEER’s increased with each of the three remaining choices; the installation materials were enhanced, warranties and guarantees were enhanced, and accessory items were included. With the Presidential choice there were many enhancements. The customer’s investment certainly also increased for each of the choices with the very highest investment being the Presidential.
With this four choice arrangement we sold a lot of the Premium choice offering. We sold few of the Presidential choice but I’m convinced the Presidential option resulted in a lot of Premium sales.
Now to the question “Ron, why do you not like the “Good, Better, Best” sales principle?” The answer is we don’t set the specifications, our customers set the specifications. Here is an example: To some people, a Ford Focus is a quality vehicle and fills their needs. To other people, the most expensive BMW they can find is a quality vehicle and fills their needs. So, with that in mind it isn’t “Good, Better, Best”. It’s “Best, Best, Best”.