If you struggle like we do with how to price your product, consider the Subscription Pricing or Good, Better, Best model. One of the best things we ever did was move to subscription pricing. For years, we crafted a service that met what we heard our clients needed. It made such good sense to provide the client with what they believed they needed. Over time, we realized that clients often do not know what is best for them. Because of our years of experience, we at Budget Ease know better and can anticipate the needs of our clients as well as the best ways to serve them.
The Good Level
We designed a basic level of service that would provide an organization with the financial information they needed to make impactful decisions. You can do the same thing with your products or services because you know what’s best for your client. As a result, we attracted clients that had a similar mindset to us and were trying to reach the same goals.
The Better Level
After we had the basic core services, we designed the next higher level of service—something with some bells and whistles. In our case, we added providing KPIs and a cash forecast and updating financial information more than once a month.
The Best Level
Lastly, we came up with a third level of service. We call it a growth strategy that really was a complete, full-service package—anything that they needed. The nice thing about this is that clients could look at how our services are packaged and sense what would be best for them without having to come up with the package themselves.
The Psychology of Pricing
Having that third level of service buffers the price of the lower two levels. In studies, when you have, for example, seven bottles of wine to choose from starting at $9 and going to $124 a bottle, the middle-range bottles of $40 seem more appealing. But if you just had five offerings without the top two levels, then clients would gravitate towards the lower-priced bottles.
Conclusion
The nice thing about this exercise is that it’s easy to craft your three different levels. You may need to adjust them slightly after the first draft, but then you can provide that to clients once they are interested in your services. You can even put them on your website as we have. Immediately, prospects know whether they fit into your service opportunities or if they’re looking for something different.
So, consider using subscription pricing or the Good, Better, Best model to take some of the confusion out of your service offerings. If you need any help with pricing, give us a call. We’re happy to help.