Internet Marketing -The magic of three -2

Mark Wickersham (UK):
The Value Pricing System
Offer three choices …

In my own case, when I started my
accounting firm back in the 1990s I
used to do a lot of tax planning.  

part of this involved incorporations
work – for tax purposes I would advise
anyone trading as a sole trader or
partnership to move to being a limited

During the first few years I
charged a single fixed price of about

Then in 1999 I came across the
concept of the magic of three.

And, as
a result, I made a couple of changes. 

I created three different packages for
my incorporation work:

Entry: Although this was the
same level of work I’d always provided,
I now documented exactly what I did on
a sheet of paper.  

(This part is
important, because it’s about building
up the value.  Before I just used to
reveal the price).  

I also decided it was time to be brave

and put the price up to £350.

·       Middle: I introduced some extra
options and, as before, I documented
exactly what I would offer clients,
focusing on the benefits this would
bring, and priced this one at £750.·      

Top: Finally I set up a
high-end, all-inclusive package that
offered to do even more for the client
and priced it at £1250.…

and watch your income triple!

Whereas before I’d charged a single
price of £250, I now offered three
different packages at

£350, £750 and £1250.  

And, every time I used my new
system with a client over the next two
years, I’d go through the three

What was fascinating was that
over half of them chose to pay £750. 

In other words, three times my old

Of the rest, over half chose the most
expensive.  In fact, only a small
proportion chose the cheapest.  
Over those two years my average price was
just over £775.  

I’d increased the amount I earned from

£250 to £775 just by changing two things:

offering three choices and

explaining the benefits of what I did.

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