The power of offering choices to your prospective clients is simple.
Let’s look at a scenario where you offer a single price and no alternatives. What does a prospective client ask herself?
Should I choose this company?
Picture a scenario where you instead offer three levels of engagement. Let’s say you offer something like this:
- Advisory – 1x Price
- Advisory + 1-month execution – 3x Price
- Advisory + 3-month execution – 5x Price
In this case, your prospective client would probably ask herself:
Which option should I choose?
Of the two questions, which would you prefer your prospect ask herself? The second one of course!
Now there are a few rules you should follow when you give choices. Those rules are:
- Make the options obviously different and escalating in value.
- Position the choice you prefer as the middle choice.
- Don’t arbitrarily increase the prices: they must clearly demonstrate additional value along with the price. For instance, the highest tier would have features and options that the other tiers don’t.
- Make your prices a multiple of each other. If they’re only 10% different, the choice between them is much more difficult.
- Don’t give too many choices. Studies show 6 starts to become detrimental. I personally prefer 3, but somewhere between 2 and 5 is fine.
A final note: adding optional line items is not the same as giving pre-packaged options. Your option tiers should demonstrate thought and have a rationale as to why someone would choose one rather than another.
And finally: do this. You’ll thank me later.
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