How to Use Good-Better-Best Pricing to Increase Your Contracting Revenue

Krib Team · 2026-03-22

Stop forcing homeowners into a yes-or-no decision. The Good-Better-Best pricing model shifts the question from "Should I hire you?" to "Which option should I choose?" — and research shows 60-70% of HVAC buyers pick the middle tier, lifting average tickets by 14-35%.

What percentage of customers pick the middle option in tiered pricing?

Studies on the compromise effect show 60-70% of customers choose the middle "Better" tier when presented with three options. This happens because humans naturally avoid extremes — the middle option feels safe, reasonable, and like the best value.

Does good-better-best pricing work for small repairs?

For jobs under $500, a single price usually works best — the customer just wants the problem fixed. Tiered pricing is most effective for equipment replacements, maintenance contracts, remodeling projects, and any service over $500 where the customer is weighing their options. Emergency repairs are also typically single-price since urgency outweighs comparison.

How many price tiers should I offer?

Three tiers is the sweet spot. Studies on the "Rule of Three" show that three options provide enough variety for meaningful comparison without causing decision fatigue. Two options feels like an ultimatum, and four or more increases the chance the customer will delay their decision.

How much extra revenue can tiered pricing generate?

Contractors who switch from single-price to tiered quotes report seeing a 14-35% increase in average ticket size. This happens because customers who would have chosen your cheapest option often bump up to the middle tier, and a portion opt for the premium tier. You also lose fewer quotes overall because the entry-level option captures price-sensitive customers who might otherwise walk away.

Is there free software for creating tiered quotes?

Krib offers a free tiered quote builder with Multi-Tier Mode — easily toggle it on any estimate to generate Good, Better, and Best options with independent line items. Customers see a professional side-by-side comparison and can select their preferred option with one click. Most competitors charge $59-$299/month for similar tiered quoting features.

Sources

  1. ACHR News — Good, Better, Best Pricing Options — Pricing strategy for HVAC contractors
  2. Mastering the Good-Better-Best Strategy — Ibbaka — Strategic framework for tiered pricing
  3. The Paradox of Choice — The Decision Lab — Research on decision fatigue and the compromise effect