The Movie Theater Price Hack
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Summary
- When you have three price points – small, medium, and large – where you place the medium price can affect sales.
- If you want to sell more of the large option, place the medium price close to the large. This makes the large look like a great deal because it's only a bit more expensive.
- On the other hand, if you want to sell more of the medium option, place it further away from the large price. This makes the medium seem more reasonable compared to the expensive large option.
- It's smart to always have a very pricey option available. This can help make the other choices look more affordable by comparison.
Video
How To Take Action
I would suggest implementing a pricing strategy with three tiers: small, medium, and large. This way, you can influence which option customers choose. It's a simple tweak but can have a big impact.
A good way of doing this is if you want to sell more of the large package, set your medium price close to it. This positions the large option as a great value because it's only slightly more expensive.
Alternatively, if your goal is to sell more of the medium option, increase the gap between the medium and large prices. By making the medium option much cheaper than the large, it appears to be the more sensible choice.
Also, always have a very high-priced option in your lineup, even if it rarely sells. This helps the other prices feel more affordable and reasonable in comparison.
As a small business owner or entrepreneur, you can apply these strategies quickly and without much cost. Just take a look at your current price offerings, and experiment with repositioning your price points based on your sales goals. Regularly test and gather customer feedback to understand which pricing tier is working best for your business. Making these small adjustments can help drive more sales and optimize your revenue.
