Why to raise your prices… to the perfect price, revealed by SunWiz’s unique free tool!

You’re probably charging too little, without realizing it. You should raise your prices now. Here’s three reasons why:

#1 reason to raise your prices: the prices you’re competing against aren’t where the smart money is being made.

SunWiz has analyzed hundreds of thousands of system prices. 

The prices you see advertised are far different to the typical prices of systems sold.

Using our unique insights, we’ve seen that 

  • Combined Proposed Revenue : while low-priced systems are most commonly proposed, a very sizeable chunk of higher priced systems are proposed. 
  • Combined Sold Revenue : low-priced systems are easier to sell and so are the largest individual contributors to industry-wide revenue. However, there’s a large chunk of revenue captured by higher-priced systems that shouldn’t be overlooked
  • Combined Sold Profit : The higher priced systems punch well above their weight, delivering a far greater share of industry-wide profit than people realize.

Price perfectly. Here’s how:

Our SunBiz Advisor’s Inner Vision helps you understand the perfect price to charge.

It shows: 

  1. The trend in average prices in your state, and how your average price compares
  2. They typical price charged in your state for systems that use the same equipment you use, and how your price compares
  3. The range of prices of systems that use other equipment.
  4. The distribution of prices charged in your state, and how they compare to your price distribution. You can see this on a revenue as-proposed or as-sold basis, or profit as-sold.

#2 reason to raise your prices: your total profit increases, despite having fewer customers.

Salespeople tend to focus attention on avoiding losing sales. It’s natural, human instinct to seek approval, and it especially plays out for salespeople (I’m guilty of this too).

Instead salespeople should focus attention on avoiding losing margin. That’s because if you raise your prices by 17%, you’ll make the same amount as profit with half as many sales.

Here’s how:

  • Assume your Average Sales Price is $8,000, at a 15% margin.
  • That equates to $1,200 profit per sale.
  • If you’re currently converting 26% of your leads into sales, then 100 leads would produce 26 customers and $31,200 profit.
  • If theoretically you raised your prices by 10% to $8800, your profit would be $2000 per sale (a 23% margin).
  • If you sold 15.6 systems at that price (16% conversion), you’d pocket the same profit ($31,200) as you made with 26 sales at 15% margin

Essentially you’d do one-third less work for the same amount of money. You may not be as ‘busy’ or ‘occupied’… which means you’ve got more time to improve your business, like generating system upgrades and referrals (which naturally convert twice as often, at a higher price), or differentiating your proposal, or sales training, or business automation – all of which further enhance your profit.

This is only a theoretical example. The actual figures depends upon your current margin & conversion rate, and the relationship between conversion rate and margin. Fortunately SunBiz Advisor clients can discover the perfect price to charge to maximise profit. There’s a teaser below – hint: the vertical axis is conversion rate and the horizontal axis is profit margin.

#3 reason to raise your prices: your costs will rise soon.

Right now, electricity prices are high across the world. So the whole world is demanding solar panels & inverters. So far Australia has been spared this price surge because there’s been an oversupply in warehouses because of the 2022-H1 slowdown. But suppliers have warned prices will rise dramatically.

Please (please, please) factor those price rises in now – after so many months of solar business contraction, you can’t afford to install systems at a loss. Don’t go bust because of a boom.

Just don’t get too far ahead of the market with your price rises.
Retails prices are dynamic and fast-moving.
So track what’s actually being charged as it evolves, with SunBiz Advisor Inner Vision.

Bonus: Increase your profit further.

Within your business, there are certainly activities that are more profitable than others. Places you sell that are closer and convert better. Products you offer that aren’t shifting as well as you’d hoped. Salespeople who are having a bad month, again… and again.

Concentrating your focus on the best-converting aspects of your business is a great way to improve your overall profitability.

SunBiz Advisor Inner Vision reveals to you which are the best-performing (and worst-performing) aspects of your business.

So you can do more of the good stuff and less of the bad.