Two friends of mine are working on a project where they sell a study guide for an important exam here in Brazil. They have basically two product options available: a digital version and a print one. The price of the digital version is about half of the printed one. Which one do you think is selling more?
On most markets the cheaper version of a product will always outsell the most expensive one, but with some clever marketing they managed to make the print version outsell the cheaper digital one almost two to one.
The strategy: Price your products so that the most profitable one will also be most valuable one to your customer. After that make sure that your pricing and marketing strategy make it dead easy for the customer to spot the best option and to understand what a great deal the offer is.
How to do it: They priced the digital version at $49, the print version at $94, and the promotional combo of the digital+print versions at $99. In other words, by adding only $5 to the cost of the print version the customer can get the digital version too, which alone would cost $49.
The goal is to make it very easy for the customer to spot and understand that the combo option is by far the best value, and that it’s a good deal in general. This strategy will not only direct customers toward your most profitable product, but it will also increase your overall conversion rate, because more customers will like the deal and purchase it.
The two basic aspects you can use/highlight to facilitate comparison and help your customer identify your product as the best deal are the pricing and thefeatures, and notice that you can make the comparison internally, using the different versions of your own products, or externally, using the price and features of your competitors.
For instance, most web hosting companies use this strategy to show the value of their hosting packages:
As you can see on the image above some companies will even explicitly highlight which plan/product they believe is the best value or the most popular choice according to other users.
Bottom line: structure your pricing and marketing strategies in such a way that customers will quickly and easily understand what is the best option, and why your product/service is a great deal.
Source: dailyblogtips.com
Thanks a lot this nice post . keep it up...
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