Increase Selling Price and Keep Your Customers
Written by Robert M. Fisher, Gadd Business Consultants
An excellent method to increase your revenue without losing your clientele is by providing three tier pricing packages. By providing three different rates for the same basic item you are allowing your customers to pick the price that they can afford while gaining additional product/service. Whatever type of business it is from bakery items to technology services, you can do this.
Package one should be a basic model, like a bakery item or technology service. Provide the same item for the same price that your customers have already been buying.
Package two should include the basic product/service along with a slight increase, two for one – bakery item or a second tech service that will not take up too much of your time. This package can be priced at one and one-half the original price of package one.
The third package should include the first two items plus a substantial increase in product/service. Sell items as a two for one bakery item including decorating or personalization. For technology services you can include training or monitoring to the service provided. The third package can be priced much higher (two to three times the original price), but make sure it is worth the increase to the customer.
Providing a choice in prices like this, allows your customer to decide if they need or want an increase in their usual product/service choice. Business owners want most of their clients choosing the second package, this would allow an increase in revenue with little additional work/product involved.
Reference: How to Charge Maximum Price without Scaring Your Buyers Away
Written by: Neville Medhora