How can you increase sales to price-sensitive buyers without killing your profits?
If you lower your price to sell more units to price-sensitive buyers, you’ll hurt profits from your buyers who were willing to pay more but don’t have to now.
More often than not, you’ll lose more profits from your existing customers than you’ll pick up from any new customers — leaving you worse off overall.
But there is a way you can pick up more sales without killing your profits.
Offer a bare bones product that has just enough features and functionality to appeal to buyers who are price sensitive. Then, offer optional products and services that complement and enhance your bare bones product.
When it comes to pricing, keep your profit margin low on your bare bones product and high on the optional enhancements.
If you follow this strategy, you can pick up sales from buyers who care more about price than performance without hurting profits from customers who are willing to spend more to get better results.
Read more in Boost sales and profits with add-on products.