The Three-Tier Pricing Strategy for Landscape Lighting: Good, Best, Good

There was a question the other day in our free FB group, Landscape Lighting Secrets.

Here it is:
“Guys - I'm restructuring the way we price and offering a few different packages. I'm trying to bucket different fixtures into different pricing tiers... like "Good" "Better" "Best"... Does anyone do this? What does your current process look like in offering the client to pick between fixtures? Do they pick the fixtures? Do they even care? I just feel like if I'm offering good, better, best and using fixture brand & material as a selling point, the customer will want to be more involved with what is chosen. What are your thoughts?”

What a great question!

There were a lot of good responses…. and I definitely didn’t agree with a lot of them, but I can certainly understand where they are coming from.

Most of the responses were centered around the design approach and less about the fixtures. Some don’t understand why you would offer an inferior product if you are claiming to be the best. Which I also understand.

A lot of people struggle with this approach - “the good, better, best approach.” But just because they struggle with it doesn’t mean it doesn’t work.

While I don’t love it being called “the good, better, best approach” - I do agree with the three-option approach.

I’m about to give away a portion of my pricing strategy that can help you make millions of dollars. (It literally made me millions of dollars!)

My approach looks like this:

Good, best, good.

And combine that with zones. It really is the best of both worlds.

Look, homeowners are predictable. When we were born, we were programmed with the desire to get multiple quotes. Lol. I don’t know why, but we are. Everyone wants multiple bids. That's fine. Don’t fight it. Just go with it. So when you give a quote with separate zones it does not satisfy the internal programming to get multiple quotes. It's a nice thing to do but it doesn’t scratch the itch.

However, when you show a potential client that you could do the exact same design (with multiple zones) for three different prices, that does scratch the itch and turns off the “need 3 quotes” warning light in the prospect's brain.

How do I know this? Well, because I built a multi-million dollar landscape lighting business using this approach.

Again, this is just what I did. Doesn’t mean that other methods don’t work. There are a lot of ways to win, but I will say, some methods are better than others. Always be challenging your current method. Always be willing to try new things.

Some things to be aware of:

• You are not a fixture salesperson. Ok, that is true until it's not. I put a fixture in everyone's hand. Why not? I’ve sold so many projects because of this one thing. But my focus was not a ‘fixture salesperson’.

• Don’t discuss fixture brand. Instead, discuss materials, quality, warranty, finish, etc.

• How you price the three options truly matters. If you screw this up, the entire pricing strategy falls apart. 🙂

• Break it up into zones and price options.

• The three options have to be vastly different in the right ways. For example, one can’t have a three-year warranty and one have a five-year warranty.

• It has to be three options. Not two. Not four. The majority of people want to fit in. Most people don’t want to buy the most expensive and most don’t want the cheapest. So by offering three options it funnels people right into where they find a happy place and you make it easy for them to make the right decision.

I give away the rest of the strategy, including exactly how to price these options inside my training program, Landscape Lighting Secrets. But this honestly is plenty of info to get you started. Now go out and make a bunch of money so you can afford to work with us at Landscape Lighting Secrets.

-Ryan Lee

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