Plan, Do, Measure
Carefully plan your
three offers and the value proposition for each. Once you
introduce your three offers, measure the success rate of each
option by the corresponding sales attach rate. Typically the
"good" offer should be about 25% of your sales, and the "best"
offer is normally only 15% of your sales. Some customers will
want the lowest cost option, and some will want to be exclusive
and purchase the best option regardless of price. The middle of
the road "better" offer is customarily the lion share at
60% of your total sales. Most customers are willing to pay a
little more for quality, speed or convenience associated with
the "better" offer if presented properly, even if they do not
want to pay the high price of the "best" option. The "better"
alternative gives customers a chance to do a little better than
"good", but still feel that they saved money as compared to the
outrageously priced "best" option.
If you do not
experience the desired result in mix of sales then it may be
necessary to adjust your plan or your
value propositions. In any
case, as long as the customers continue to make a selection
between your options, the competition is irrelevant. Your
customers can get what they want, and they will
remain your customers.