If you are still giving customers a single price on every estimate, you are leaving money on the table and making it easier for competitors to undercut you. The Good-Better-Best pricing model is one of the most powerful strategies in the home service industry, and the contractors who use it consistently out-earn those who do not.
This is not a new concept. Restaurants do it with menu tiers. Car dealerships do it with trim levels. Software companies do it with subscription plans. The psychology is well established: when people are given three options, they tend to choose the middle one. For contractors, that middle option is usually the most profitable tier.
Why Single-Price Estimates Fail
When you present a customer with one number, you create a simple yes-or-no decision. The customer either accepts your price or they do not. If they feel it is too high, there is nowhere to go. If they feel it is fair, they accept, but you will never know if they would have paid more for a premium solution.
Single-price estimates also invite comparison shopping. With nothing to differentiate your quote from a competitor's, the customer defaults to the only variable they can compare: price. This is the race to the bottom that so many contractors find themselves stuck in.
How Good-Better-Best Works
The Good-Better-Best model presents three options for every job, each at a different price point with different levels of service, materials, or warranty coverage. Here is how to structure each tier:
The Good Option
This is the baseline solution that solves the customer's immediate problem. It uses standard materials, includes the minimum scope of work needed, and comes with your standard warranty. The Good option should be priced competitively because its primary purpose is to remove the "it's too expensive" objection. Not every customer can afford the premium solution, and that is okay. You still want their business.
The Better Option
This is your sweet spot. The Better option includes everything in Good, plus meaningful upgrades that add real value. This might mean higher-efficiency equipment, upgraded materials, an extended warranty, or additional work that addresses root causes rather than just symptoms. Price the Better option 30 to 50 percent higher than Good. This is where most customers will land, and it should carry your best margin.
The Best Option
This is the premium, top-of-the-line solution. It includes everything in Better, plus the highest-quality materials, the most comprehensive warranty, and any additional services that make sense for the job. The Best option serves two purposes: it makes the Better option look like a great deal by comparison, and it captures the customers who genuinely want the best and are willing to pay for it. You might be surprised how often people choose Best when given the option.
Real-World Examples by Trade
HVAC Replacement:
- Good: 14 SEER system, standard installation, 5-year parts warranty. $6,800.
- Better: 16 SEER system, upgraded thermostat, duct sealing, 10-year parts and labor warranty. $9,200.
- Best: 18 SEER variable-speed system, smart thermostat, full duct redesign, lifetime compressor warranty. $13,500.
Plumbing Water Heater:
- Good: 40-gallon standard tank, basic installation, 6-year warranty. $1,400.
- Better: 50-gallon high-efficiency tank, expansion tank, new water lines, 10-year warranty. $2,100.
- Best: Tankless system, recirculating pump, gas line upgrade, lifetime warranty. $4,200.
Roofing Repair:
- Good: Patch damaged area, standard shingles, 2-year workmanship warranty. $800.
- Better: Replace entire slope, architectural shingles, ice and water shield, 5-year warranty. $3,200.
- Best: Full reroof, premium shingles, new flashing and ventilation, 10-year warranty. $12,000.
Presenting the Options Effectively
How you present the options matters as much as the options themselves. Here are the keys to making Good-Better-Best work in practice:
- Always start with Best and work down. This anchors the customer at the highest value and makes the other options feel like a deal. If you start with Good and work up, every step feels like you are trying to upsell them.
- Explain the value difference, not just the price difference. Do not just say "this one costs more." Explain what the customer gets and why it matters. "The Better option includes a 10-year warranty which means if anything goes wrong in the next decade, you are completely covered at no additional cost."
- Use video to show the options. This is where video estimates shine. You can walk the customer through each tier, pointing to the equipment, materials, and scope of work involved. Seeing the difference is far more compelling than reading about it.
- Make it easy to approve. Send the options in a format where the customer can tap a button to choose their preferred tier. Remove friction from the approval process. The easier it is to say yes, the faster they will.
- Never pressure. Present the options, explain the differences, and let the customer decide. The beauty of Good-Better-Best is that it shifts the conversation from "should I hire this contractor?" to "which option should I choose?" You have already won the job. Now they are just picking the level of service.
The Impact on Your Business
Contractors who implement Good-Better-Best pricing see consistent results. Average ticket size typically increases by 15 to 35 percent because customers who would have chosen the only option available now choose a higher tier. Close rates often improve because there is an option for every budget. Customer satisfaction goes up because people feel in control of their decision rather than being pressured into a single choice.
The hardest part is getting started. You need to sit down and build your tiers for each common job type. Decide what goes into Good, Better, and Best. Calculate your pricing for each. Then commit to presenting all three options on every estimate you send. Within a month, you will see the difference in your numbers.
Tools like VidBid make this process seamless by building Good-Better-Best pricing directly into the estimate workflow. You record your video, add your three tiers, and send it to the customer in minutes. They see the video, review the options, and approve, all from their phone.
