Selling More Expensive Things Will Change Your Business
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Summary
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The only thing worse than making a $1,000 offer to someone with a $100 budget is making a $100 offer to someone with a $1,000 budget. In the first case, you lose $100; in the second, you miss out on $900 you could have made.
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I learned from a friend that it's smart to add something much more expensive to your menu of items or services. This item should be 10 or 100 times more expensive. If someone buys it, you should be thrilled.
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Adding a high-priced item helps you sell more of your main offer because the big price acts as an anchor. This means your regular offer looks cheaper in comparison.
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It also allows you to increase the price of your main offer because, compared to the high-priced item, it still seems affordable.
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A friend with a weight loss business tried this. He added an option that was six times more expensive than his main offer. Surprisingly, people started buying the high-priced version more than his core offer.
Video
How To Take Action
Action Plan for Implementing High-Value Strategies
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Add a High-Priced Item to Your Menu:
- I suggest adding an item to your list of products or services that is 10 to 100 times more expensive than your main offering. This could be a deluxe package, an exclusive service, or a premium version of what you already offer. The key is making sure you're thrilled if someone buys it.
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Use Price Anchoring:
- By placing the high-priced item next to your main offer, your main offer will seem more affordable. Think like this: if your main offer is $100, and your high-priced item is $1,000, your $100 offer will look like a bargain in comparison.
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Increase Your Main Offer’s Price:
- Once you have your high-priced item set up, it gives you room to slightly increase the price of your main offer. People will see your main offer as moderately priced, compared to the high-priced item.
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Test and Observe:
- Try this approach for a period and observe any changes in customer behavior. This strategy was tested in the weight loss business where the high-priced version outsold the core offer. This could happen in your business too!
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Low-Cost, High-Value Adjustments:
- These strategies don’t require a lot of money or time but can result in significant value. You're essentially restructuring your pricing strategy without major changes to the products or services you offer.
By implementing these suggestions, small businesses and entrepreneurs can maximize revenue and strategically position their offerings to cater to different customer budgets.
