I have seen numerous pricing studies, with the same results, prospects will often think your price seems high if they have no basis for comparison. So how does a small business get around this without sending prospects to a competitor’s site for a price comparison?
Offer choice! For example: Model A includes 3 features and sells for $200. In comparison, model B includes 7 features and is only $250. In numerous research studies, when offered two choices, 90% of consumers will select the lower price alternative. However, when presented three alternatives, Model A and B as described above and a super Model C, selling at $600, more than 70% of the consumers will gravitate to the middle. Now they have a point of comparison, and your middle range product looks much more attractive.
Want to sell more of you higher priced offer? Add a third option which is even more expensive, and watch your sales mix shift!
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