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, 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...
Honestly, I was going to writing about something else for my first missive of the new year, but I don’t want to add my voice to those trying to normalize what is not normal. I don’t know about you, but it’s very hard to shut out what’s going on and focus on my to-do list these days. Especially, when every item seems trite and pointless against the much larger issues hitting the news feeds multiple times a day. It’s more than a lot. It’s way too much. So today my message is simple: Take care...
Right now, there's a consumer 'blackout' movement afoot to, basically, stop buying stuff for the entirety of the Black Friday weekend from corporations. This isn't just happening in the USA, but also in Canada, as a way to protest the current economic climate and policies that are making the wealthy wealthier and squeezing every penny out of the rest of us. Don't forget, there's still active consumer protests against Target, Home Depot, and Amazon, among others, as well. In other words, it...