Mark Wickersham (UK):
The Value Pricing System
https://www.wickersham.co.uk/a/6541/wWVxKzFL
There is a big mistake people keep
making with menu pricing.
I think it comes from a lack of
understanding of what menu pricing
really means and the power of it.
So, let me first explain what it means…
What is Menu PricingMenu pricing is giving people different
choices, different options, bundles or
packages.
Sometimes it is referred to as bronze,
silver and gold.
Sometimes, it’s the
good, better and best strategy. If you
read the textbooks on pricing, it’s
very often referred to as versioning.
It works incredibly well. It’s so
powerful.
Occasionally, I come across accountants
that tell me it doesn’t work.
That leaves me intrigued, because all the
research and evidence is absolutely
clear that this strategy works.
What are you doing wrong?
I’ve found that many people are doing
it wrong.
This is due to a lack of
understanding, or lack of knowledge of
how to build your packages and give
people the right choice.
The mistake people make is that they
think of all these extra things they
can do to add value but then they
randomly assign them to the bronze,
silver and gold packages.
If you randomly build your different
packages with no thought, what happens
is that those packages don’t speak to
any particular buyer.
If they don’t
speak to and meet the specific needs of
a buyer then you are going to harm your
chances of making the conversion.
To be continued
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