Estimating

Good / Better / Best: The Estimating Strategy That Increases Average Job Value

C
Chris Navarro
·May 12, 20266 min read

In 2017, behavioral economist Richard Thaler won the Nobel Memorial Prize in Economic Sciences for, among other things, showing that people make choices differently depending on how options are presented. Roofing contractors have been accidentally ignoring this insight for decades by presenting a single bid. Here's how to use it intentionally.

Why a Single Quote Creates the Wrong Decision

When you give a homeowner one number, you force a binary decision: yes or no. If the number is too high, they shop it. If it's too low, you left money on the table. There's no room for the homeowner to self-select into a higher value option — because you never showed them one. More damaging: a single quote signals to the homeowner that there's only one way to solve their problem. That's almost never true. There's a basic way, a better way, and a best way. When you only show one, you're deciding for them — and most reps, under the fear of losing the job, present the cheapest option. Then they lose the job anyway and wonder why.

How the Three-Option Effect Works in Practice

Behavioral economics calls it the "compromise effect." When people see three options, they systematically avoid both extremes and gravitate toward the middle. This isn't manipulation — it's human psychology operating exactly as designed. In roofing, contractors who make this switch commonly report a pattern like this: a small share of homeowners choose the Good (basic) option, the majority land on Better (mid-tier), and a meaningful minority choose Best (premium) — exact splits vary by market and price point, but the middle tier is consistently the most popular. Compare that to a single-quote scenario where you presented only the Good option: every homeowner who buys is in the low tier by default. You've given away the revenue from every homeowner who would have happily paid for Better or Best — if only they'd been asked.

How to Structure Your Three Tiers

The tiers need to be meaningfully different, not just different prices for the same work. Each tier should deliver real, explainable value. GOOD — Solves the immediate problem. Entry-level materials. Standard warranty. Addresses the damage and protects the home. No frills. BETTER — Standard replacement with better materials. 30-year architectural shingles instead of 20-year 3-tab. Upgraded underlayment. Better warranty. This is the "right way to do it" option. Most homeowners who were expecting a one-size-fits-all quote will upgrade here. BEST — Premium system. Class 4 impact-resistant shingles if the homeowner can get an insurance discount. Extended labor warranty. Ice and water shield on all valleys. Ridge vent upgrade. This is the "I want this done once and done right" option — and the homeowners who choose it are your best referral sources, because they're proud of the outcome. Make the price difference between tiers significant enough to feel meaningful but not so large that the jump feels arbitrary. A $500 premium for Better over Good feels trivial. A $2,000 premium for a system that lasts 10 years longer is easy to justify.

What to Say When Presenting the Tiers

The biggest mistake reps make when presenting tiered estimates is talking the homeowner out of the premium options. They'll pre-apologize for the Best tier price before the homeowner even reads it: "Now, the top one is probably more than you're looking for, but..." Stop doing this. Present all three with equal confidence. Your job is to explain what each one includes and let the homeowner decide. A brief script: "I put together three options for you. The first addresses the damage with standard materials — that's the most basic approach. The middle option is what I'd recommend for most homes: it's a full system with 30-year shingles and a better warranty. The top option is for homeowners who want the most durable system available and never want to think about this roof again." Then stop talking. Let them read. Let them choose. Most will pick the middle. Some will surprise you with the top.

The Math on Your Average Job Value

Let's say your current average job is $8,500. You're presenting single quotes. You switch to Good / Better / Best: — Good: $7,000 (20% of jobs) — Better: $10,500 (60% of jobs) — Best: $14,000 (20% of jobs) Blended average: (0.20 × $7,000) + (0.60 × $10,500) + (0.20 × $14,000) = $1,400 + $6,300 + $2,800 = $10,500. That's a $2,000 increase per job on average — with the same leads, the same reps, the same marketing budget. At 150 jobs per year, that's $300,000 in additional revenue. From changing how you present estimates.

One More Thing: Tiered Estimates Also Improve Your Close Rate

Counterintuitive but true: presenting more options typically increases your close rate, not decreases it. Here's why. When a homeowner feels like they have control over the decision — like they're choosing, not being sold to — they're more comfortable committing. The tiered estimate removes the adversarial dynamic of "am I getting the best price?" and replaces it with "which option fits my situation?" Homeowners who feel in control say yes faster. You're not presenting options to confuse them. You're presenting options because there genuinely is more than one way to solve their problem — and treating them like the adult they are means letting them choose.

Ready to put this into practice?

Scaffold's Good / Better / Best estimate builder lets your reps build and send tiered proposals from their phone in under 5 minutes — with e-signature built in.