Tiered pricing generates more sales
Reagan Ramm, Orpheus Audio Academy
"One tactic I’ve found to be really helpful when it comes to pricing is to use “tiered pricing”.
This is where you offer not one price point for your product, but two or three. Typically, I use two.
One tier will be lower, and the other will be higher ($67 and $147, for example). I've found this is a great strategy for three reasons.
1. Instead of thinking, "Should I buy this?" visitors instead think, "Which one WOULD I buy?"
This is a simple psychological shift that gets visitors to your sales page in more of a buying mindset. Instinctually, when we see two options, we automatically start thinking about which option is best for us, even if we don't plan on choosing either.
2. This is also a form of "price conditioning".
Price conditioning is basically where you get a potential customer used to one, higher level of investment before presenting them with the actual price, which is lower.
If I just listed a course for $97, that might seem too expensive for some people. But if I have two tiers, and one is $197 while the other is $97, suddenly $97 looks like a good deal.
3. Some people are just happy to spend more money with you if you offer them more value.
If you simply give people the option to spend more money with you, some will do it, so why not give them the option?
Let's say you create a course and sell it for $97. Great! But now can you think of a way to add a little extra value and offer a higher tier for $197, or more?
One of the best ways to do this is to simply bundle your other courses into the higher tier as bonuses, and/or offer a one-on-one coaching or consultation call.
There are plenty of other bonuses you can offer, but these two options are relatively easy to add on to any course.
So, in conclusion, I've found adding multiple pricing tiers to my courses is a great way to generate more sales and higher average order values."
Reagan Ramm is an audio engineer school and digital marketer who helps indie music artists make pro-quality music from home and build a fanbase online.