How should you price a bare bones product and its optional enhancements?
Here are three guidelines to help you price them profitably.
First, price the bare bones product relatively low compared to your cost to buy or make it. The more your bare bones product leads to additional purchases, the lower you can price it.
Second, price the optional enhancements relatively high compared to your cost to make, buy, or deliver them. This is where you get back the profits you’ve sacrificed by aggressively pricing your bare bones product.
Third, keep the prices of the optional enhancements relatively low compared to the price of the bare bones product. Most buyers are less price-sensitive to options than they are to the initial purchase. However, you risk making price an issue again as the total cost of the optional purchases starts to add up.
Sales expert Jim Domanski recommends the total value of the optional purchases shouldn’t exceed 25% of the initial purchase.