Giving customers choices is good right? More options increase the chances that you’ll have what a customer wants and thus make a sale. Well, not necessarily.
Too many choices can overwhelm and confuse potential customers. And when buyers get confused, they don’t buy because they’re afraid of making a mistake.
For sure, you can be there to answer their questions, guide them to the right choice, etc. But besides the extra expense this adds to your selling costs, buyers are often afraid to ask questions and look stupid, they don’t want to wait for assistance, etc. Just because buyers don’t ask you questions doesn’t mean they don’t have them. They might be too confused to know what questions to ask!
Here are three pricing tactics you can use to reduce buyer confusion and increase your sales.
Tactic #1: Offer different levels of quality that are clearly communicated by different price points and descriptive labels. For example, you can offer three different qualities of paint brushes. This makes it easier for your customers to find the right level of quality for their budget and needs.
Tactic #2: Create packages of different products and services, that solve specific customer problems. For example, you can bundle a paint brush with a paint bucket (or roller tray) and a drop cloth — all for one price.
Your customer probably knows the problem they have. It’s far less likely they know everything they need to solve their problem. For example, a homeowner knows she has a weed problem. But she doesn’t know what products and services she needs to solve that problem.
Tip: Give your packages descriptive labels that tell buyers what problem the package solves.
Tactic #3: Combine tactics #1 and #2 to create different package quality levels to solve a particular problem. Once again, different price points and descriptive labels will help your customers find the right package for their needs and budget.
What you’re doing is making it easier for your customers or clients to find the products and services that solve their problems and fit their budget. Rather than confusing them, you’re bringing clarity to their decision making.