Replace Allowance Pricing with Real-Time Upgrades - Best Alternative to Allowance Pricing
Aug 3, 2020 12:00:00 AM
Most contractors use allowance pricing for their finishes which create problems right from the start. The consumer agrees to a price (i.e. kitchen renovation for $35,000) but then later makes their selections and the price goes up to $40,000. Of course this isn't the contractor's fault but it puts a bad taste in the consumer's mouth since they were budgeting a lot less and didn't realize the allowance pricing wouldn't cover their selections. Not to mention, the contractor tends to make the allowance pricing on the low side so that the estimate is more competitive which tends to add to the problem.
So what's the solution? Well, there's not much a contractor can do using traditional tools like Excel or most of the other construction estimating software. However, there is good news... CostCertified is the first construction software that has done away with allowance pricing and introduced real-time upgrades with an Amazon-like experience. The consumer can interact with the proposal and upgrade right on the spot. So the consumer gets a more accurate price, enjoys the experience and the contractor makes more money from all the upgrade selections.
Here's a video that showcases the interactive proposals with real-time upgrades:
Here's the best part, 83% of consumers choose to upgrade when given a CostCertified quote that has many upgrades to choose from! That means if you're not using CostCertified you are leaving money on the table!
If you're interested fill out the form on our website and somebody from our team will give you a link to a 14 day trial.