Your pricing is more than just your pricing — it is part of your company brand. It is likely that your customers will come to remember you by their experience during the purchasing process. Therefore, having a quoting and pricing strategy for your fenestration business that best hits the pain points of your customers while benefiting your bottom line is paramount to the longevity of your business.
Choosing the right pricing strategy for your fenestration business will require knowing your customers at an analytical level. Considerations for your booking style might influence your methods.
What to Consider When Choosing a Fenestration Business Pricing Strategy?
The windows and doors industry has its own pain points, but generally, all manufacturing industries have similar best practices when it comes to deciding on a pricing strategy.
Know Your Customers: Pricing your doors and windows is more than a game of creating the necessary percent margin. Items should be evaluated individually to understand their value to your customers. Having a clear and analytical view of your customers will take some of the guesswork out of this process.
Address Your Customers’ Pain Points: Not all of your customers are the same and, by the same token, your customers will not have the same needs all the time. Defining your audiences can help you to pinpoint those needs and develop a pricing strategy for them. Discover where your customers struggle in the purchasing process, and address those concerns. Creating multiple pricing options will aid in catering to a range of your customers’ needs.
Know Your Products’ Value Offering: Know why your customers should choose your products over your competitors and state those reasons clearly. This could apply to the physical quality of the materials or build of your product, but there can also be value for your customers in things that overhead or your digital storefront provide. In the fenestration industry, having products that follow the trends, such as being environmentally conscious, adds a huge value offering.
Evaluate and Adjust (Software Can Help): Your pricing strategy is subject to change in order to meet the evolving and shifting needs of your customers. Embrace the diversity, and treat pricing changes as an inevitably. Having software can help you track and analyze audience behavior.
What are My Fenestration Business Pricing Strategy Options?
Offering discounts may be an immediate way to build interest or raise volume, but it is not a sustainable way to price. Having a proven strategy for your business will ultimately benefit and grow every aspect of your business.
Mark-up Pricing: In the fenestration industry, this is the practice of selling materials at retail plus the profit margin. The margin percentage may be different depending on the material, so your software might calculate the retail price, and then apply the appropriate mark-up to each item. As far as manufacturing businesses go, this practice is standard and competitive. However, it runs the risk of not meeting your customers’ needs, as it staples a margin on products without evaluating their value offerings.
Dynamic Pricing: With the demand for building materials like steel on the rise, dynamic pricing is a valuable tool. To many businesses, it just makes sense to adjust pricing to accommodate the marginal squeeze, or to change pricing based on whether the customer is a big or small entity. To effectively implement dynamic pricing, software tools are a must in order to track the variables.
Specific Configurations: Fenestration business might sell a specific product at a base price, and then charge accordingly for customizations and add-ons. This could be a viable option if your business has less specific customization options, but otherwise, might require a massive amount of organizational tools to maintain.
Can a Pricing Software Help Me Create a Fenestration Business Pricing Strategy?
There are many hybrids of pricing methods that can be consulted to craft a perfect pricing strategy. Some can be implemented manually, and others might be AI influenced. Regardless of how the strategy is crafted and implemented, market research and data are going to drive a good business decision. Having access to pricing software will aid in defining your audience, learning their habits, and identifying their pain points.
Whiz Express is a quoting and pricing software designed specifically for the door and window industries. We understand that creating custom orders from multiple manufacturers can be difficult. Our system has a vast amount of configuration options to meet your organization’s unique needs. Schedule a free demo, and learn what makes Whiz Express the best solution for your fenestration business.