Different people are willing to pay different prices for the same thing (or slightly different things). So charging a uniform price for your product or service costs you sales and profits.
The problem is how to figure out which buyers are willing to pay you more and which buyers are not. One solution is to get buyers to sort themselves by their willingness to pay for your product or service.
Here are eight ways you can do this. All of these techniques have two things in common.
[1.] Buyers select which price they want to pay from a set of options that you offer to all of your buyers.
[2.] Buyers who are willing to spend more get more; buyers who are willing to take less, spend less.
1. The “buy more, pay less” technique
Charge buyers who purchase more a lower average price than buyers who purchase less. In other words, reduce the price on additional units buyer purchase.
2. The “good, better, best” technique
Charge buyers progressively higher prices for progressively better versions of your product or service.
3. The “bare bones” technique
Offer a base product that has just the features and functionality that every buyer wants. Then, for an additional charge, offer optional products and services that only some buyers will want.
4. The “one to many” technique
Break up your product or service into separate parts and charge a separate price for each part. Let buyers purchase only the parts they want.
5. The “many to one” technique
Offer a package of products and/or services at a price that’s lower than the sum of their individual prices.
6. The “add-on” technique
Offer the option to purchase product or service B only to buyers who purchase product or service A.
7. The “there’s a time” technique
Charge different prices to buyers who purchase or use your product or service at different points in time.
8. The “there’s a place” technique
Charge different prices to buyers who purchase your product or service at different places.
Conclusion
Remember, you don’t have to charge every buyer the same price. And you don’t have to haggle with them to figure out who’s willing to pay what. Instead, create a menu of price options, and let buyers choose between getting more value from you or paying a lower price.