In my last article, i argues why premium packages could work in all businesses. However, once you start to realise the potential, you can begin to test out different package pricing to help you achieve your sales goals.
Think about how you have bought in the past ... given the choice of two levels of package, we tend to opt for the lower one - no-one wants to pay top price after all.
But given the choice of three, we tend to opt for the middle offering - no-one wants to be the cheapskate either! And, with clever testing of how you position the middle package, you can even make the top package the no brainer.
Here is a brilliant example - these are the actual results from an online and hard copy access package offered by the Economist...
With their two-tier option ... the majority opted for the lower cost internet only access.
Yet, by adding a third tier, and pricing it identically to the middle tier but with more benefits - hey presto, 84% paid the higher price (which is, in fact, more than DOUBLE the lowest cost.
What were the company's objectives here? And what have they achieved? Clever stuff, eh?
So, it pays to experiment and to track your results until you come up with the optimum solution.
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