How to set the best price for a customer
Every customer is different, so you must approach every customer in their own way. This is not only about how you communicate with customers, but also in setting the price of their solar panel system. But how can you use different calculations for different systems—and how can you automate this process?
With the right software, there is a solution for each individual pricing situation. Using design and quotation software, you can vary your pricing if a financial tool is included. This blog will discuss pricing opportunities to get you the best and most satisfied customers.
There are generally four main pricing possibilities applicable for solar panel systems:
- Unit pricing
- Package pricing
- WP (Watt peak) pricing
- ‘Random’ pricing
Unit pricing for standardised flexibility
Unit pricing is quite literally what it says: pricing based on the units, or items, used in the solar panel system design. You set a price per item, including the panel, the inverter, possibly an optimizer, and other (extra) products and services. Usually, the price excludes VAT since this will be calculated over the entire quotation, including labour costs, etc. If unit pricing is set up in a design tool, you just need to select the relevant items, and the costs will be automatically listed in the final quotation. This saves time, and you ensure the right price is being charged.
Package pricing for a one size fits all
A package price can make the offer more attractive when just a couple of specific panels and inverters are needed. You just need to set a standard fixed price for a certain amount of panels, including an inverter and sometimes optimizers. A difference from unit pricing is that other materials and labour are also included in this pricing. With the right software tool, you can incorporate packages into your account preferences to create a design and a matching quotation with a few clicks. This way of working is valuable and indispensable for the booming solar panel market. It is the only way to ensure that you have time for all your clients and that everything runs smoothly at the same time.
Generally, not all clients have 100% matching preferences. For instance, a client may want a different inverter than you typically offer in your package preferences. In these situations, you can combine your package pricing with a unit price – if you have the right software.
WP pricing (watt-peak) for commercial systems
Especially for commercial systems, there is the trend of watt-peak (or WP) pricing. For WP pricing, setting unit or package pricing is unnecessary; instead, you enter the desired €/wp in your quotation software. Now, based on the size of the system, the price of the entire solar panel system is calculated.
Sometimes a situation occurs where none of the above-mentioned pricing methods are applicable. In most quotation tools, you can overwrite the prices by entering a ‘total’ price (ex., VAT) at the end of the quotation.
Do not forget your margins
If you do decide to use random pricing, it is essential to determine whether you enter the purchase price (ex. VAT) or the sales price (ex. VAT). This has to do with setting a margin.
You can enter a standard margin via your personal settings in a quotation tool. This margin will always be applied to the panels, inverters, and optimizers. For other products (miscellaneous), you can optionally check or uncheck the margin.
Discounts and payment terms
Finally, you may want to include discounts or payment terms in certain situations. In most quotation tools, it is possible to enter a discount, including an optional description, which can be either a percentage or a ‘set’ amount.
Start automating your sales process with Solar Monkey
Since 2015, Solar Monkey has accelerated over 1000 installers, and over a million projects have been realised using our software. The pricing opportunities mentioned above are all possible with Solar Monkey. With a few clicks, you can set up your account, and you won’t have to worry anymore about your quotations. Just create your design, and our tool will do the rest.