To sell more of a $300 package instead of a $200 one, introduce a $500 option. Most won't buy the decoy, but its presence shifts the customer's reference point, making the $300 package appear more reasonable and valuable by comparison.
Related Insights
When selling high-ticket services, don't raise prices incrementally. Instead, make a significant jump (e.g., from $3,800 to $8,000). If it doesn't sell, you've gained valuable market data and can simply re-price the next cohort. The upside of finding a new price ceiling far outweighs the risk of a single failed launch.
SaaS companies scale revenue not by adjusting price points, but by creating distinct packages for different segments. The same core software can be sold for vastly different amounts to enterprise versus mid-market clients by packaging features, services, and support to match their perceived value and needs.
Introduce a significantly more expensive, highly customized version of your service alongside your main offering. This price anchor makes the actual product you want to sell appear like a fantastic deal, even if it has a high price point, thereby increasing conversion rates.
Prospects who haven't bought your type of solution in a long time lack proper context. They will compare your modern, high-value offering to a cheaper, older, or simpler alternative they understand, leading to sticker shock unless you proactively reframe their perspective.
A tiny offer can bridge the gap from a low price point to a premium one by targeting the single biggest objection to the main offer. For one client's $100k program, a $37 case study booklet was created specifically to solve the "I can't imagine myself doing this" mindset block.
When stacking value in an offer, don't just add random bonuses. Strategically design each bonus to address a specific, predictable customer objection, such as 'I don't have time' or 'This seems too complex.' This transforms value-stacking from a generic tactic into a precise conversion tool.
When a new KFC premium product wasn't selling, they doubled the price instead of discounting it. This aligned the price with consumer expectations for a premium item, signaling quality and causing sales to soar. Low prices can imply low quality for high-end goods.
The way a price is presented alters a consumer's emotional response, even if the total cost is identical. Breaking a large sum into smaller installments, like Klarna does, makes it feel more manageable and less intimidating, thus boosting sales.
A single hourly rate prompts a binary yes/no decision. Offering several packages changes the customer's question from 'Should I hire them?' to 'Which option is best for me?' This assumes the sale and focuses the decision on the method of engagement.
By introducing a third, strategically priced but less appealing option (the "decoy"), you can manipulate how customers perceive value. A medium popcorn priced close to the large makes the large seem like a much better deal. This proves that value is relative and can be shaped by deliberate choice architecture.
