Pricing experiments and the psychology behind it.

[Fiveofeen]

http://conversionxl.com/pricing-experiments-you-might-not-know-but-can-learn-from/

Since a lot of discussion goes over pricing I thought it would be cool to share some methods that are proven to shift things in your advantage.

I wanted to just copy and paste but that would take a while. its not my writing, just found it interesting enough to share.

What I thought most interesting in this article was the point of offering three choices. Something that not too many tint shops do from what I see on a day to day basis.

[McCoyH]

This is what really stood out to me in mind of window tinting:

People were offered 2 kinds of beer: premium beer for $2.50 and bargain beer for $1.80. Around 80% chose the more expensive beer.

Now a third beer was introduced, a super bargain beer for $1.60 in addition to the previous two. Now 80% bought the $1.80 beer and the rest $2.50 beer. Nobody bought the cheapest option.

Third time around, they removed the $1.60 beer and replaced with a super premium $3.40 beer. Most people chose the $2.50 beer, a small number $1.80 beer and arounf 10% opted for the most expensive $3.40 beer. Some people will always buy the most expensive option, no matter the price.

You can influence people’s choice by offering different options. Old school sales people also say that offering different price point options will make people choose between your plans, instead of choosing whether to buy your product or not.

[Ryker]

nice Tim....making me think about a pricing game. Not sure I want to offer different films or carry them. Thinking that I could offer a "5 year" film, a manufacture "lifetime" film, and an "extended lifetime" offering from ME with maybe the whole scratching covered bit, but using the same film.

[Guest T4Tint]

This is what really stood out to me in mind of window tinting:

People were offered 2 kinds of beer: premium beer for $2.50 and bargain beer for $1.80. Around 80% chose the more expensive beer.

Now a third beer was introduced, a super bargain beer for $1.60 in addition to the previous two. Now 80% bought the $1.80 beer and the rest $2.50 beer. Nobody bought the cheapest option.

Third time around, they removed the $1.60 beer and replaced with a super premium $3.40 beer. Most people chose the $2.50 beer, a small number $1.80 beer and arounf 10% opted for the most expensive $3.40 beer. Some people will always buy the most expensive option, no matter the price.

You can influence people’s choice by offering different options. Old school sales people also say that offering different price point options will make people choose between your plans, instead of choosing whether to buy your product or not.

I love beers, and this is not really truth for me man .

It's more about taste.

[TintDude]

Great topic about offering choices. On the flip side, too many choices can also have a paralyzing effect on the custy.

No more than 3 options.

[TintWizard]

Great topic about offering choices. On the flip side, too many choices can also have a paralyzing effect on the custy.

No more than 3 options.

I've always gone between 2 or 3 choices and me me anyways over the years, I found 2 choices to have worked the best

[coast2coasttinting]

for the longest time I sold a good and better film. Got to the point that I was selling mostly the better film, so I quit pricing the good film. I am now thinking that I should step it up to price each custy a better and a best film choice.

[lostinbama]

Bingo!

[Fiveofeen]

Great topic about offering choices. On the flip side, too many choices can also have a paralyzing effect on the custy.

No more than 3 options.

Yeah no more than three, no way. Two could work out okay but I think just one option is a very poor decision and leaves you cornered frequently with price being the only way to move.

Glad you guys liked it, I enjoy sharing stuff like this and its much more fun to do so when its met with a good reception.

[vquestfilms.com]

This is what really stood out to me in mind of window tinting:

People were offered 2 kinds of beer: premium beer for $2.50 and bargain beer for $1.80. Around 80% chose the more expensive beer.

Now a third beer was introduced, a super bargain beer for $1.60 in addition to the previous two. Now 80% bought the $1.80 beer and the rest $2.50 beer. Nobody bought the cheapest option.

Third time around, they removed the $1.60 beer and replaced with a super premium $3.40 beer. Most people chose the $2.50 beer, a small number $1.80 beer and arounf 10% opted for the most expensive $3.40 beer. Some people will always buy the most expensive option, no matter the price.

You can influence people’s choice by offering different options. Old school sales people also say that offering different price point options will make people choose between your plans, instead of choosing whether to buy your product or not.

I've always offered 3 price points for as long as I can remember. It used to be a huge jump from a DR to Solis back in the day but that pricing hole in the middle was finally filled when Huper came out with the ceramic line. To this day I still encourage a 3 product offer, it enables you to stay competitive while leaving the opportunity for the upsell on the table.

Don't sell yourselves short guys, get a good line up of film technologies and don't just go in there trying to pitch the lowest bid. You can actually sell ultra-premium products these days with margins that will enable you to grow your businesses. I just helped a dealer close 30k sq ft of 8mil ceramic. It was an upsell, we were bidding against 8mil Traditional Reflective products at a much lower price point. Of course we offered the traditional option but we put the upsell on the table as well and they chose it. You will never sell what you don't offer.