You analyze the client’s brief. You talk to your developers. You calculate the hours. Finally, you send the email:

“The project will cost $85,000.”

Then, silence. Or worse, the client replies: “That is over our budget.”

The moment you send a single number, you back yourself into a corner. You force the client into a binary decision: Yes or No. If the price is too high, the answer is No, and the deal is dead.

But there is a better way.

Top-performing sales teams never send just one price. They use a tiered software estimate strategy. By offering three distinct options, they change the conversation from “Can we afford this?” to “Which option is best for us?”

This article explains exactly how to structure a 3-option proposal to win more deals, even when your full price is initially over the client’s budget.

Table of Contents

  1. The trap of the single number
  2. The psychology of choice (why 3 is the magic number)
  3. The 3-option strategy explained
  4. How this saves deals that are “over budget”
  5. Why this builds massive trust
  6. How to create options quickly in devtimate
  7. Checklist
  8. FAQ

The trap of the single number

When you provide a single price for a complex software project, you take on all the risk.

If you quote too high, you lose the client immediately. They might assume you are “too expensive” without realizing that your price includes premium features they don’t strictly need yet.

If you quote too low, you win the deal but destroy your profit margins.

Most importantly, a single number puts you in the same bucket as every other vendor. If the client talks to five agencies, and four of them send a single price PDF, the client simply compares the numbers. $50k vs $80k vs $100k. The lowest number usually wins, regardless of quality.

To escape this “commodity trap,” you need to stop being a vendor and start being a consultant. Consultants give options.

The psychology of choice (why 3 is the magic number)

The human brain loves choice, but it hates too much choice.

If you give a client 10 options, they get paralyzed. If you give them 1 option, they feel trapped. But if you give them 3 options, you trigger a powerful psychological effect known as the “Goldilocks Principle.”

By presenting three tiers, you frame your own pricing. The expensive option makes the middle option look like great value. The cheap option ensures you don’t get disqualified for budget reasons. You keep the client’s attention on your proposal, rather than letting them compare you to competitors.

The 3-option strategy explained

Here is exactly how to structure your next software estimate. Do not just list “Bronze, Silver, Gold.” Use strategic framing that aligns with the client’s business goals.

Option A: The MVP (Minimum Viable Product)

Who is this for? The budget-conscious client who needs to launch fast.

What is included? Only the absolute “must-haves.” Cut every “nice-to-have” feature. Remove the admin panel (suggesting manual database edits for now). Simplify the design. Use off-the-shelf components instead of custom code.

The Pitch: “This option gets you to market in 3 months instead of 6. It fits perfectly within your current budget constraints and allows you to start generating revenue before investing in advanced features.”

Option C: The Full Vision (The Dream)

Who is this for? The client who wants the perfect solution and has the funding.

What is included? Everything the client asked for, plus your expert recommendations. Include the advanced admin dashboard, the AI integration, the custom animations, and the scalable microservices architecture.

The Pitch: “This is the complete vision. It is built for scale from day one and includes all the automation features that will save your team 20 hours a week.”

Option B: The Realistic Compromise (The Target)

Who is this for? Most clients.

What is included? A smart blend. It includes the core MVP plus the 2-3 high-value features that really matter to the user experience. It cuts the expensive fluff but keeps the quality high.

The Pitch: “This is our recommended path. It balances speed to market with a polished user experience, giving you the best ROI.”

How this saves deals that are “over budget”

Imagine your client has a budget of $100,000. Your technical team estimates the full scope at $150,000.

Scenario 1 (The old way): You send a quote for $150,000. Client: “That is way over budget. We can’t do it.” Deal lost.

Scenario 2 (The tiered way): You send a proposal with three options:

Now the conversation changes. The client sees that you can do it for their budget ($90k). They are not scared away.

Instead of saying “No,” they say: “Okay, Option A is in our budget. But we really like that one feature from Option B. Can we add just that?”

You have moved from a “Yes/No” negotiation to a “Scope/Price” negotiation. You are still in the game.

Why this builds massive trust

Using options does more than just save the deal. It positions you as a proactive partner rather than just a coder.

  1. It shows you listen: You prove that you understand their constraints (Option A) and their dreams (Option C).
  2. It shows transparency: You aren’t hiding the cost. You are showing exactly what drives the price up or down.
  3. It empowers the client: You aren’t dictating the price. You are giving them control over how they spend their money.
  4. It demonstrates expertise: By suggesting what to cut for the MVP, you show that you know what is truly essential for a product launch.

Nine out of ten agencies will just send a big number. You will be the one sending a strategy.

How to create options quickly in devtimate

Creating three separate proposals manually in Excel is a nightmare. It takes too much time and leads to calculation errors.

This is where devtimate changes the game.

devtimate allows you to create Scope Variants within a single project. You don’t need to copy-paste files.

  1. Build the Master Scope: List all the features for the “Full Vision.”
  2. Create Variants: Click to create “MVP” and “Recommended” variants.
  3. Toggle Features: Simply toggle features “on” or “off” for each variant. The price recalculates instantly.
  4. One-Click Export: Generate a beautiful, branded proposal that displays all three options side-by-side for the client.

You can do in 5 minutes what used to take 5 hours. This allows you to use this high-converting strategy for every lead, not just the big ones.

Try devtimate for free and start sending proposals that win.

Checklist

✅ Always create at least two, preferably three, pricing options.
✅ Ensure Option A fits within the client’s stated or estimated budget.
✅ Make Option C the “dream” version to anchor the price.
✅ Give each option a clear, benefit-driven name (e.g., “MVP Launch”).
✅ Explicitly list which features are excluded from the lower tiers.
✅ Use the options to guide the conversation during your presentation.

FAQ

1. What if the client picks the cheapest option?
That is a win! You secured the deal. Often, once the project starts and they see the value, they will upgrade to add more features later. The goal is to get your foot in the door.

2. Does creating three options take too much time?
If you use spreadsheets, yes. If you use a dedicated tool like devtimate, it takes minutes because you just toggle features on and off from a master list.

3. Should I show the total price or the hourly breakdown? For the summary of options, show the total estimated price (or range). It keeps the decision simple. You can provide the detailed hourly breakdown for the selected option in the appendix or upon request.

4. What if the client’s budget is too low even for an MVP?
Then the options strategy helps you disqualify them professionally. You can show them exactly what can be done for their budget (perhaps just a Discovery Phase or a clickable prototype) vs. what they want. It clarifies expectations immediately.

5. Can I use this for Time & Materials contracts?
Absolutely. You aren’t promising a fixed fee. You are estimating the scope for each option. “Option A covers the MVP scope, estimated at 400-500 hours. Option B covers the full scope, estimated at 800-900 hours.”

Stop letting price be the reason you lose deals.

By offering a tiered software estimate, you treat your client like a partner, not a paycheck. You give them the power to choose, and in return, they choose you.

Start building your tiered proposals today with devtimate.