1 price for a product or service is a sure way to leave clients and customers unsatisfied. Some clients will always buy the most expensive option, some the middle option, but most will not buy the cheapest option.
I have a client that sells an educational service. For years the only price available was about $250. After my cajoling, begging and whining this client added 2 other price points-one was 2x the base price and the other 4x the base price.
Over the course of the last few years, a majority of sales were for the most expensive package! Their revenue on this particular product increased by 4x. Needless to say they are now an advocate of the 3 price point theory. They have even taken it a step further, by raising the prices of each package a second time to increase their margins.
How can you do this with you product or service? Find high value low cost additions to offer your customers that help them get the end result they want by transacting with you. In the example above, they added books, extra tutoring time and a very valuable opportunity to shadow a professional and see how to apply the principles being learned. These simple and straight forward options helped turn a decent money maker into an impressive profit center .
Don’t get trapped in the discount and free mentality, continue to add value to your offers and you will increase your sales and profit while enriching the experience of your customers. Offer your products in 3 price points and let your customers spend more money with you.