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What would it take to double your price?

I have no idea if the $8 car wash is better than the $4 car wash. But I buy it every so often.

I don’t know if I’ll make more sales with the Platinum Event Sponsorship than the Gold Event Sponsorship. But it’s worth a try.

The secret to this kind of pricing upgrade: Unbundle the features. Take your existing product and list out each individual benefit and option. Create a super-duper version with all the options. Create a bargain one with just the basics. Test different combinations. You’ll probably make more money than if you sell it all together.

Why does this work?

  • Buyers like choices. We feel in control if we get to pick our features.
  • Some people like bargains. Some like to get all the extras. You can make them both happy.
  • We can only process a few features at a time. If you pile all your best attributes into a single product, you often don’t get credit for all that hidden value. Break them apart and people can understand how each feature adds value.

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Comments

  1. matt haines September 4, 2009 at 5:05 pm #

    And don’t forget – as the picture illustrates – that three choices are ideal. You’ll sell mostly the middle choice. And if you’ve got lots of choices, it pays to indicate the one you’d like to sell most of, with a “best value” or “most popular pick” tag of some sort.
    But you knew all of that.

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