I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
Power Throuple
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Three has an almost mystical symbolism and power whether you're pondering math, music, or spirituality. Our brains just love patterns, and three is the smallest number needed to create one. It's satisfying, complete, and somehow feels "just right" to our minds. That's why it's so powerful when considering pricing strategies, as well. Here are three ways to leverage the power of 3 for your pricing: Sandwich PricingWhen businesses offer three price points, something fascinating happens. The middle option often becomes the most popular choice. Why? Because it feels like the "Goldilocks" option - not too expensive, not too cheap...just right. By sandwiching your target offer between a budget option and a premium one, you create a comfortable middle ground that many customers will gravitate toward. But, you also want to nudge them in the right direction by highlighting the middle option in some way. Some businesses note their middle option is the "most popular" or "best value," while others make it visually pop and standout. (See Is the Price Right? for more about this and other pricing models) The Decoy EffectSometimes adding a third option that nobody wants or considers a good value boosts sales of the option you're driving your prospects to purchase. Let's say you have two coffee sizes: small ($2) and large ($3.50). People might split evenly between them. Add a medium size at $3.25, and suddenly the large seems like a much better deal. More people choose the large, even though nothing about it has changed! What has changed is that your medium-priced option has shifted your customers' perceived value of your more expensive option. (See The Decoy Ploy for more about this pricing strategy). Good-Better-BestThis approach focuses on creating distinct value tiers that drive specific customer behaviors by offering three clearly defined options that appeal to different customer segments:
Each tier is designed to be genuinely attractive to a specific customer segment, which is what distinguishes it from sandwich pricing. Need some help with your pricing strategy? Let's talk. Until next time, Your success is our strategy!No longer want to receive my newsletter but don't want to miss my special offers and announcements? Click here. |
Easily Said & Done
I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
Hi Reader, Something I've been enjoying of late are multiple influencers showcasing the limits of ChatGPT and the like. One guy asks it some pretty basic questions, such as to name a number between one and one hundred that includes the letter 'a.' (Spoiler alert: there aren't any). ChatGPT lies to his face over and over again. Another one provides examples of business fails due to AI. Some are pretty extraordinary. But here's the thing, this isn't just a harmless gimmick, it's a warning cry,...
Have you seen the video of McDonald's CEO Chris Kempczinski trying to promote the new Big Arch burger ahead of its March 3rd launch? How about any of the many, many videos or memes negging on it for a host of reasons, including how Kempczinski refers to the burger as "a delicious product" or his failure to take a real bite of it, seeming almost disgusted by it. To me, there are three great marketing stories going on here. 1. Going Viral Isn't the Goal Yes, there is such a thing as bad PR and...
This fall my mom was diagnosed with mild-to-moderate dementia. While sad, it did not come as a surprise. It's one reason I sold her house and we moved in together late last summer. At first, I planned outings to the Y and other senior programs, scheduled visits from family and friends, coordinated physical therapy appointments, and designed little daily activities to keep her engaged and stimulated. This winter it's gotten harder and harder to get mom out of bed let alone dressed and out the...