Marketing to your customers can be a bit difficult at times, especially with competitive prices coming in like crazy. Every company out there will tell you the same basic idea; “Our goal is to get you to buy our product”. It’s all about selling at it’s most fundamental level. Businesses are always looking for new ways to get their consumers to purchase their products and services. When it’s all about growth and expansion of the company, of course, you’re going to want to move units. Now there are a few natural ways to make that happen, but what about not giving your consumer the option of “no”?
It’s a system currently being called the “yes-yes” system. It essentially takes away the option of saying “no” to a price. The fact is that most companies out there have a single price for their products. This “buy now” price gives the consumers a chance to say no to the product or service. Buy implementing the “yes-yes” system and offering a “regular” and “premium” priced options, the consumer is now faced with a “yes” or “yes” decision.
Now, mind you, there is always the option of just leaving and not purchasing. How can you stop this? Simple! The “premium” version of your product or service should offer a bonus that is irresistible. Let’s see an example.
Let’s say you’re purchasing a new gaming system. You can choose to buy the regularly priced version, or you can choose to purchase the “premium” version which is only slightly higher priced. The regularly priced gaming system is $400 and the “premium” version is $440. Now there is no difference in either gaming system. They both offer the same type of inner workings and perform the same exact functions. The difference with the “premium” option stems from the bonus that comes with a brand new and exclusive gaming controller. This controller can’t be bought anywhere else and only comes with the “premium” version of the system.
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With this premium offer and the price point being only slightly higher, the brain no longer focuses on the game system, but it is now focusing on the controller. Naturally, you’ll be more drawn to the premium because it offers something exclusive and the bonus can’t be found anywhere else (and shouldn’t be!).
So why would this system work so well? It’s simple, it stems directly from the bonus itself. You’re now offering the customer an added benefit for a marginally higher price. They get a bonus item or service for purchasing the premium. The pricing of the premium also directly effects the sale. The price for the premium should not be higher than 10% to 15% of what the “regular” price is. When the price is set only that much higher, the customer doesn’t feel as much of a bite from purchasing the higher priced version, especially if they see the value in the “premium” version. If the price point is higher than the 15% mark, then the consumer may start looking at the “premium” version as a separate product altogether, instead of an upgrade.
What is making the consumers go for the “premium” as opposed to the regular? It can be attributed to the very clear benefit of a bonus, and the feeling of missing out on something. Since you’re offering a bonus and that “bonus” can’t be found anywhere else, you put a limit on it. That limit naturally makes the product more desirable, thus pushing the “premium” version further than the “regular” priced item. The limitation on the “bonus” makes us feel like the “premium” bonus might be taken away and there is a sense of urgency now.
This system can also help increase prices for your products or services steadily. If your $30 Premium is exceeding the sales of the regularly priced version, then the “premium” has become the new “regular” and it’s time for a price increase. Now the “premium” is $33 and the “regular” version is $30. The increase in price works because of it’s minimal difference.
If you’re looking to increase sales for your company, definitely try the “yes-yes” system out on a new product or service and watch the sales increase!
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