🔊 The Strategy of Choice 🔊 

We all like a little choice but get confused when we have too much. How does this apply to your Price Strategy?

💥Well 1st thing is 1st, Choice before Price!

The Strategy of Choice in action:

Have you ever gone into a restaurant, looked at a menu and gotten confused? There is too much choice,  you end up picking something. After you’ll think, that was ok, but disappointed you didn’t choose something else?

This is a common output when you have too much choice. But on the opposite end of the scale, you can’t have a service that’s a 

⛔️‘1 Size Fits All 

⛔️You can’t put a square peg into a round hole

So it’s always important to ensure you have options for your customers! and you reduce your chances of getting a sale, from a choice perspective to 50/50, Buy or not Buy. 

So for example:

If you have 3 choices you substantially reduce your chance, from a choice perspective, of not getting the sale. You don’t build services for the sake of services, they need to match your target market’s pain points. This takes time to learn so always be prepared to continually iterate your 

✅Strategy of Choice

The Strategy of Price:

Once you have your strategy of choice then it’s time to consider your strategy of the price! Again by adding this dimension, you are giving your target market a little choice, but not too much.

💥Enough between your choice and price to give them an option that will suit their particular need

However, there should be 1 option that you would like to push most.

✅That is, account for 60% to 80% of your sales

And you make that come across as the best value for money, a simple example of this in operation is at the cinema. 

You will see 3 popcorn sizes: 

  • Really small and very expensive relative to the others (decoy 1)
  • Really large, just way too much but not that more expensive (decoy 2)
  • The one in the middle which seems like the best value overall

People will still purchase the decoys, on average between 20% to 40%, but the majority will purchase the middle size. This example can be seen across many retail stores and utility providers, and the same principles will apply to your service and offers. It’s all about finding the right fit!

When you look at all your service providers, you will see this in action

💥The strategy of choice and price, when designed correctly, will open up more avenues and customers for sales

Will you get it right in the beginning❓ Probably not

But it’s not about getting it right, it’s about getting it started and committing to continue iterating it until you have it working like a steam train!🔥