The trick to making good/better/best pricing work

Chris Austin

The trick to making good/better/best pricing work is that buyers must feel each version of your product will meet their needs better than its less expensive counterpart.

Here are a couple of tests to help you compare two different versions of your product and service.

Test #1: Would pretty much every buyer prefer version B of your product to version A? If so, then your customers think version B is better than version A.

Test #2: Suppose you ran out of version A of your product or service. Would pretty much all of your customers be happy if they received version B instead — at no extra charge? If so, then your customers think version B is better than version A.

When your buyers pretty much all agree that one version is better than another, then you can and should charge a higher price for that version. You’ll pick up extra sales and profits from buyers who want more and are willing to pay for it.