Line Item Pricing

TL;DR

Line item pricing may sound transparent, but it usually creates confusion and shifts the focus away from the value of the full project. Customers end up treating your proposal like a shopping list—even though nothing can be purchased individually.

• Line item pricing turns proposals into misleading shopping lists
• Customers can’t buy individual items without the full project
• Itemized prices distract from scope, outcomes, and value
• A confident response builds trust without overexplaining
• Answering questions works better than listing every cost

Next Step:
Decide how you’ll respond to line item pricing requests so you can confidently redirect the conversation to scope, value, and fit—without losing control of the sale.

Do you ever get nervous or feel uncertain when your potential customer asks you to provide line item pricing?

I used to feel the same way until I realized that providing line item pricing usually causes confusion with my customers.

LINE ITEM PRICING CAUSES CONFUSION

The reason that line item pricing causes confusion is because it turns your proposal into what looks like a shopping list. But the problem is, you’re not providing retail prices for those line items.

You see, they can’t pick one of those line items, say, “No, what’s too much” and then decide not to buy it and put it back on the shelf.

The only way that they’re going to get that particular line item is if they buy the whole project.

So there’s no need to give them line item pricing because it’s just going to confuse the matter.

HOW TO RESPOND TO THE “LINE ITEM PRICING” QUESTION

When I get that question, here’s what I always respond with:

“No, we don’t provide line item pricing because we find that it creates confusion for our customers. It turns our proposal into what looks like a shopping list but you can’t buy any one of those particular items on that list without buying the whole project, but I understand why you’re asking so what questions do you have?”

And then I simply leave it at that and I answer any questions they have.

For example they may say, “Well, how much do you have in there for drywall?”

And I might say something like, “Oh, around $2000. What other questions do you have?”

And I keep answering those questions until they run out of questions.

THE NEXT QUESTION POTENTIAL CUSTOMERS ASK

Now every now and then they might ask you, “Well, what’s your overhead and your markup?” Now we’re getting to the good stuff.

So stay tuned, I’ll post another video on how to deal with that question.

In the meantime, click here to download my free book, The Paperwork Punch List: 28 Days to Streamline Your Construction Business.

If you’ve got any questions shoot me an email.

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