As our economy reopens, we are seeing many examples of price increases coming from supply not catching up with growing demand. While there does not seem to be a printing shortage, this external reality points to an opportunity to edge prices upward. Why not consider adjusting your estimating software to add 1 or 2 percent to the total? If the $1,130 estimate became $1,153, it would have a remarkable effect on your bottom line. Sensibly, you’d prefer to do this as secretly as possible to avoid upsetting the customers or the sales reps.
As always, the estimate is the start but not the finish of the pricing process. Good business practice dictates further modifications to price to reflect customer relationships, competitive situations, and individual project value. All that making a small upward adjustment does is to start with a slightly higher base and it’s surprisingly powerful.
Source: The Management Guys, Bob Lindgren (818) 219-3855 and Gerry Michael (206) 310-1119