Let’s say you’re offering a course with 10 videos, 10 corresponding pdfs and 3 great bonuses, all for $47 – and you want to make that $47 seem like an absolute and total bargain price. How do you do it?
By giving your customers a choice right there on the sales page, the check-out page or preferably both.
Here’s how to do it:
Strip your package down to a much smaller one.
For example, 10 videos, no pdfs and no bonuses. Or 10 pdfs, no videos and no bonuses. Whatever works.
Offer that smaller version for $37, or $39, or even $45. You might want to test this to see which one works better.
Have the smaller version right there next to the big version for $47.
Let them know they have a choice. Of course, you recommend the full $47 version, but it’s up to them.
This is a variation of decoy pricing which typically uses 3 prices to sway buyers into purchasing a particular item.
With the slightly lower price giving them so much less, your regular price looks much better.
Also test having a higher price with not much more benefit.
In this case, it could be $67 for a slightly bigger package. That might increase sales of your regular priced product as well.
Remember to test, test and test some more to see what works best.
Curious about the 3 price decoy effect?
The most famous example is pricing used by the Economist, and later by many other magazines and newspapers.
The Economist offered an online subscription for $59, a print subscription for $125, or an online and print subscription for $125.
Naturally, this greatly boosted sales of the third option.
How can you apply this proven strategy to your business? I know you can find some creative ways to do so and boost your sales in the process!