TOTW #13: Selling by 3
In the world of sales and marketing, it’s often said that simplicity is key. The idea that presenting customers with a limited set of options can help increase sales has been studied extensively, and it’s been found that providing too many choices can actually hinder the buying process. One popular approach to this is to offer three packages:
The first package: the “call price”, is the most basic offering. It’s the bare minimum that the company can offer and still provide value to the customer. This package might include only the most essential features or services, and it’s priced accordingly. The goal of this package is to provide a baseline option that’s affordable for most customers. Often, it’s this initial package which is introduced as “From $xxx” and which attracts the client.
The third package: the expensive one, is the opposite of the first. It’s the most complete package, with all the bells and whistles included. This package is priced at a premium, and it’s intended for customers who are willing to pay for the absolute best.
However, the most interesting package is the second one, the one that we want to sell. This is the package that strikes the right balance between affordability and features. It’s often priced somewhere in the middle, and it includes enough features or services to make it an attractive option for most customers. This package is where the company can make the most profit, as it offers the right balance between value and cost.
The second package provides a happy medium that satisfies both of these needs. It can also be a good way to upsell customers who might be considering the first package, by offering them more value for just a little bit more money. And last but not least, the customer doesn’t feel the “we took the first package because we don’t have money” syndrome.
Now all you have to do, is sit down with a piece of paper and pen and start creating your three packages!
Let me know how it goes!
Until next week,
Maddy
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