How to Use Pricing Options in your Design Proposals
Personally, I really like good-better-best options. I use them when discussing budgets with clients and material selections all the time. But more recently I’ve begun to apply the same approach to creating proposals for clients and I have to say, I’m a fan.
The psychology makes sense. Think about the last time you picked out a bottle of wine at a restaurant. You probably didn’t go with the lowest, and unless you’re a baller, you probably didn’t go with the $300 bottle of Stags Leap Cask 23. Oh, you’re a baller?
If you don’t give clients something to compare, what are they going to do? They are going to price shop and come up with pricing all over the place because they are comparing apples to oranges. So we are going to give them apples to apples.
For the longest time, I would send clients proposals that summarized my fees like this…
Kitchen Design - Estimate 100 hours - $12,000
Here is what you get: blah blah blah.
The problem with this? It leaves clients to decide how much time it should take me to do something and form opinions about the value. If I’m really good and it doesn’t take as long, I’m punished. If it takes longer, then the client is punished.
So instead of tying my design fees to billable hours/time spent, my proposals are now value-based and I provide clients with options. This places the value on results, not time.
Here is how my proposals look today
I believe you should come up with the service details that work best for you, but I want to provide a few quick examples of how you could set up your offerings. You could also develop different or proprietary names for each level.
“DIY” Option: Maybe you give them an ideal layout of furniture for a room but you don’t actually source anything. It could also include a color palette and a few big idea recommendations.
“Most Popular” Option: At this level, you’ll probably want to source specific design options, prepare a detailed budget and drawings.
“White Glove” Option: This level should include all the bells and whistles. It is a premium service with the highest level of luxury. Perhaps you include a celebratory open house for your clients at the end.
Sure, you would love for every client to opt for ‘White Glove’ service, but let’s be honest - that’s not everyone’s cup of tea. Isn’t it better to offer a menu of options and let clients make the decision that suits their taste? If they choose any of the three options, it’s a success. You’ve gained a client, a new project, and the opportunity to serve up results on a silver platter. Win, win, win!
