Do you struggle to sell and justify your prices to your customers?
Do you get frustrated that your products are not sold for the price you think they are worth? Or that you often get undercut on price by your competitors?
The problem that many businesses have is that they tend to only offer 1 price for each product, service, or solution that they are selling.
So, when the price is presented to the buyer, it’s a binary decision from the buyer’s point of view. They either like the price or they don’t.
Even if they do like it, they will almost certainly be comparing your price to another reference point that you cannot control. E.g. a competitor’s offering or a previous similar purchase experience. As a seller, you have limited power and influence over your buyer’s perception of price at this point.
However, there is a simple solution called “tiered pricing”. In other words, offering your customers a CHOICE of 2 or 3 different price points for the product or service they are considering.
Instead of just one price point of say, £150, we present 3 different price points of e.g. £100, £150, and £250 (with a corresponding increase in the value of the product offering).
This allows customers with different levels of “willingness to pay” to select the product option that best meets their needs, at a price point they are prepared to invest.
Make life easier for both you and your customers by offering a CHOICE of 2 or 3 different price points, rather than just 1 price point.
You can do this for both products and services, and you can also use tiered pricing for individual client proposals if that is how your business works.
You will find that this strategy has a magical effect on increasing both your sales and your average selling prices. You would be amazed at the number of businesses we have helped with this pricing strategy who report back that many more of their customers are buying the most expensive option than they anticipated!
If you need help sorting out your pricing strategy to make your prices easier to sell, then get in touch.